Judge: Coal company can drop retirement benefits for 13,000 workers

Media Outlet: 

MSNBC, National Catholic Reporter, Lincoln Journal

Bankrupt coal mining company Patriot Coal will be able to void its agreement with the United Mine Workers union and stop funding pensions for retired miners, thanks to a ruling from a U.S. Bankruptcy Court. UMWA claims that Peabody Energy created Patriot Coal because it was “designed to fail,” in the words of a paper written by Temple Fox School of Business finance professor Bruce Rader. Patriot, he writes, “seems to have been created to fail in the long run,” so that it could use bankruptcy to get out of paying health and retirement benefits.