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Peabody Energy Dumps Retirees and Unions Into Company “Designed to Fail”

Originally posted to PolluterWatch

coal power plantPeabody Energy, the largest coal company in the US and one of the largest in the world, is once again embroiled in controversy over shady treatment of employees.

In 2007, Peabody Energy created Patriot Coal, a spin-off company comprised of Peabody’s eastern US mines. According to lawsuits involving the United Mine Workers (UMW), Patriot was formed as a place to stash union mines in West Virginia and the Midwest, along with the significant pension and health-care obligations that these eastern mines held. According to UMW, Patriot was essentially a “company created to fail,” to give Peabody Energy and Arch Coal (another major US coal company who sold union mines to Patriot) an easy way to avoid paying union pensions and health-care benefits, while continuing to profit from their giant, nonunion surface mines in the Powder River Basin of Montana and Wyoming.

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Peabody Energy Dumps Retirees and Unions into Company “Designed to Fail”

Originally posted to PolluterWatch

coal power plantPeabody Energy, the largest coal company in the US and one of the largest in the world, is once again embroiled in controversy over shady treatment of employees.

In 2007, Peabody Energy created Patriot Coal, a spin-off company comprised of Peabody’s eastern US mines. According to lawsuits involving the United Mine Workers (UMW), Patriot was formed as a place to stash union mines in West Virginia and the Midwest, along with the significant pension and health-care obligations that these eastern mines held. According to UMW, Patriot was essentially a “company created to fail,” to give Peabody Energy and Arch Coal (another major US coal company who sold union mines to Patriot) an easy way to avoid paying union pensions and health-care benefits, while continuing to profit from their giant, nonunion surface mines in the Powder River Basin of Montana and Wyoming.

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