”This is a bright ray of good news in what has been a long, dreary period for the retirees, their dependents and widows who have been desperately worried about what’s going to happen to their health care,” UMWA International President Cecil E. Roberts said in a news release. ”Peabody has spent years trying to get rid of its obligations to the thousands of retirees who made it the richest coal company in the world.” Labor Tribune photo.
The decision would have allowed Peabody Energy to stop paying the health care benefits for 3,100 retirees that it had assumed when it spun off Patriot Coal.
The decision from the three-judge panel will require Peabody to take responsibility for paying the health care benefits in the group of retirees.
Peabody issued a statement, saying the company was “pleased” with the ruling.
“Peabody is pleased with today’s ruling by the Eighth Circuit Bankruptcy Appellate Panel. The court said that Peabody was obligated to make payments (that have been consistently paid) until such time as a new labor agreement was approved between Patriot and the UMWA.