Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, July 29, 1995 TAG: 9507310036
SECTION: BUSINESS PAGE: A6 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: BIG STONE GAP LENGTH: Medium
``We were told ... the intent is to lay employees off and pay them for the remainder of time under the WARN (Worker Adjustment and Retraining Notification) act,'' said Del. Jackie Stump, D-Oakwood, a member of the union's International Board.
Westmoreland spokesman R. Page Henley Jr., however, said the company could not say whether it would make such a move.
When asked about the plans for Virginia operations, Henley said, ``The board authorized us to keep on with negotiations that are currently under way on the possible sale of the Virginia Division assets.''
He said the company had advised union representatives that they might be idling the operations Monday because of the ongoing sale negotiations.
The company gave its approximately 645 employees in Virginia the federally required 60-day notification under the WARN act last month.
Stump said the union was ready to meet and talk with any company that might purchase the Virginia operation.
According to Westmoreland, it must cut costs and sell all or part of its Virginia operation assets in order to meet operating requirements through the end of the year.
The Philadelphia-based company filed for Chapter 11 bankruptcy in November. The company has been attempting to sell off its assets in order to pay $38 million in debts.
The company had hoped in November to sell off its most profitable unit, Kentucky Criterion Coal Co., for $85 million, but the sale was blocked because of a subcontract to supply coal to a North Carolina power plant. Henley said the prime contractor at the power plant blocked the sale, leading Westmoreland to seek the bankruptcy protection.
by CNB