Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 17, 1992 TAG: 9203170191
SECTION: VIRGINIA PAGE: B1 EDITION: STATE
SOURCE: Associated Press
DATELINE: ABINGDON LENGTH: Medium
William Poff, a lawyer for the Bituminous Coal Operators Association, said the suit to force the companies to increase their contributions to two financially strapped trusts that fund the benefits for 120,000 retired miners and dependents could cripple the association.
After hear a day of arguments, U.S. District Judge Glen Williams adjourned Monday night with hopes of rendering a decision after hearing further arguments today.
Poff told Williams that if the court orders the increased contributions it will bring "chaos in the coalfields."
Williams, who March 4 ordered the administrators of the trust funds to continue paying benefits despite their financial condition, said there were other forms of chaos with which he was concerned.
"If I don't do it [increase contributions] the chaos of people without health benefits is a very sad situation," Williams said.
The two funds have a deficit of $140 million. First established in 1948, the funds began having problems as coal companies went out of business. Many of the retirees worked for those defunct companies, which no longer contribute. With fewer companies paying into the fund, and more people applying for benefits, the deficit resulted.
Poff said a court-ordered increase in the association's contribution would undermine the association's collective bargaining agreement with the United Mine Workers, which expires in February.
Poff also argued the suit was being used to derail a congressional plan to save the trusts.
Sen. Jay Rockefeller's legislation to rescue the funds passed the Senate on Friday. But it still must get through a House-Senate conference committee and President Bush, who has promised to veto the overall tax bill, which includes the bailout plan.
Rockefeller, D-W.Va., wants to transfer money from the financially stable UMW pension fund and impose a tax of 99 cents per wage-hour on Eastern coal and 15 cents a ton on Western coal.
The UMW and the operators association, which represents 14 of the nation's largest coal producers in negotiations with the UMW, both support Rockefeller's plan.
Poff said action by Williams would give opponents of the Rockefeller plan an excuse to defeat it.
"This court is being used as a political lever," Poff said. "Your decision will be used as a weapon to defeat the Rockefeller bill."
Mark Lawson, a lawyer representing the unnamed retired miners, said political considerations have nothing to do with his clients. "Our clients don't want to be held hostage to this fight between BCOA and the trustees. Lives are at risk," he said.
Earlier in the day, a trustee of the funds explained the funds' condition.
"We are broke. We are out of money," William Miller said.
If Williams allows a break in the promise of cradle-to-the-grave health care brokered by President Truman 46 years ago, some say there will be widespread picketing and work stoppages in the nation's coalfields.
On March 4, Williams prohibited administrators of the funds from notifying recipients that their health benefits would be cut off on April 15.
"There can be no doubt that the suspension of health benefits by the trustees, if not enjoined by this court, will lead to a costly and bitter strike," Lawson said.
by CNB