The new five-year agreement was effective January 1 and will be in force until the last day of 2011. Union communications director Phil Smith told International Longwall News that no predications can be made at this time beyond that point.
“This is an historic vote for the UMWA,” union international president Cecil Roberts said in a statement. “Never before has a contract been ratified by such a wide margin; I’m humbled that the membership saw fit to so strongly endorse our efforts at the bargaining table.”
Some of the details of the contract include a $US1000 bonus to all active miners the first payday of this month, $10-per-month pension increases over the life of the agreement, and an increase in shift differentials. Preserved as part of the pact were full health care benefits for all workers, active and retired, as well as their dependents.
Perhaps one of the most significant parts of the new contract is a 20% union-wide wage increase, which amounts to 32% when all other increases are factored in. The training rate for new miners will be $22.47 per hour in the last year of the agreement, while top-rate workers will be earning $24.42 hourly.
The wage increases will be broken down over the term as follows: January 1, 2007: $1.50; January 1, 2008: $1.00; January 1, 2009: $0.50; January 1, 2010: $0.50; and January 1, 2011: $0.50.
“This is the largest wage increase we’ve negotiated since 1974,” Roberts said.
Smith said while the agreement only applies to Consol Energy – the only BCOA member – at this time, it will be taking it to other operators for them to sign.
“It is our sincere hope that they do seriously consider the new agreement as something they will sign, because we are not in a negotiating mode right now.
“If they do not sign it by the middle of this month, president Roberts will make a determination as to what action will be taken at that time.
“Miners at companies which have not yet signed the agreement will report to work on January 2nd and will continue to work until told otherwise by the International Union,” said Roberts. He added that federal labour law and the terms of the 2002 negotiated national contract will continue to be enforced until those companies reach an updated agreement.
Smith also elaborated on the enforceability of the contract with those who are not BCOA outfits: “The pension improvements and contribution levels from the companies are enforceable to non-BCOA companies, as long as they are historical participants in the UMWA Health and Retirement Funds, which all of them are.
“The other terms of the new agreement [wages, health care, insurance, etc] will become enforceable when they sign it.”
Roberts said that, as far as the union is concerned, the agreement is industry-wide. “That’s our message to the other companies. It is a fair agreement for our members, and we believe it is fair for the companies as well. The level of support the members gave the agreement with their ratification vote speaks for itself, and we hope that the other companies are listening.”
