Business & Tech

Judge Clears Path For Patriot Labor Deal On Retiree Benefits

Union activists had targeted the Creve Coeur-based company, accusing the firm and others of conspiring to dump obligations to retirees.

A little more than a week after Patriot Coal and the United Mine Workers of America first reached a tentative agreement on a deal that resolves the union's legal claims as part of the Creve Coeur-based firm's bankruptcy proceedings, a federal judge signed off on allowing the two sides to forge a formal deal, The St. Louis Post-Dispatch reports.

UMWA members voted Friday to approve the pact, which eliminates most wage cuts, allows for wage increases starting in 2015 and keeps pension benefits for current retirees intact, among main provisions.

The Post-Dispatch reports that the agreement also calls for creating a trust fund for thousands of retirees, "most of whom never worked for Patriot."

For months, UMWA members had targeted Patriot Coal, accusing the company, along with Arch Coal and Peabody Energy, of conspiring to get rid of obligations to employees.

Last month, ten union activists were arrested outside the Creve Coeur headquarters of Arch Coal following a rally at CityPlace.



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