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OPINION OF TRUSTEES
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In Re
Complainant: Employee
Respondent: Employer
ROD Case No: 88-011 – July 21, 1988
Board of Trustees: Joseph P. Connors, Sr., Chairman; Paul R. Dean, Trustee;
William B. Jordan, Trustee; William Miller, Trustee; Donald E. Pierce, Jr., Trustee.
Pursuant to Article IX of the United Mine Workers of America (“UMWA”) 1950 Benefit Plan
and Trust, and under the authority of an exemption granted by the United States Department of
Labor, the Trustees have reviewed the facts and circumstances of this dispute concerning the
provision of health benefits coverage for laid-off Employees under the terms of the Employer
Benefit Plan.
Background Facts
The Complainants were employed in classified jobs by the Respondent until March 1, 1988,
when they were laid off. On March 2, 1988, the Respondent ceased operations. Information
provided to the Funds indicates that the Respondent terminated the Complainants’ health benefits
coverage, effective February 1, 1988. The Complainants have stated that they have unpaid
medical bills which were incurred during their employment with the Respondent and during their
layoff. The Complainants contend that the Respondent is responsible for providing their health
benefits coverage as Employees and during their individual periods of eligibility as laid-off
Employees.
The Respondent was signatory to the National Bituminous Coal Wage Agreement of 1984,
which expired on January 31, 1988. On January 27, 1988, the Respondent signed an Interim
Agreement indicating its intent to be bound by the terms of the agreement “successor to the 1984
National Agreement.”
Dispute
Whether the Respondent is responsible for providing health benefits coverage for the
Complainants as Employees and laid-off Employees under the terms of the Employer Benefit
Plan.
Positions of the Parties
Opinion of Trustees
Resolution of Dispute
Case No. 88-011
Page 2
Position of the Complainants: The Respondent is responsible for providing health benefits
coverage for the Complainants as Employees and during their individual periods of eligibility as
laid-off Employees.
Position of the Respondent: The Respondent has not replied to repeated correspondence from
Funds’ staff requesting its position in this dispute.
Pertinent Provisions
Article XX Section (c)(3)(i) of the National Bituminous Coal Wage Agreements of 1984 and
1988 provides in pertinent part:
(3)(i) Each signatory Employer shall establish and maintain an Employee
benefit plan to provide, implemented through an insurance carrier(s), health and
other non-pension benefits for its Employees covered by this Agreement as well
as pensioners, under the 1974 Pension Plan and Trust, whose last signatory
classified employment was with such Employer. The benefits provided by the
Employer to its eligible Participants pursuant to such plans shall be guaranteed
during the term of this Agreement by that Employer at levels set forth in such
plans.
Article I (1), (2) and (4) of the Employer Benefit Plan provide:
Article I – Definitions
The following terms shall have the meanings herein set forth:
(1) “Employer” means (Employer’s Name).
(2) “Wage Agreement” means the National Bituminous Coal Wage
Agreement of 1988, as amended from time to time and any successor
agreement.
(4) “Employee” shall mean a person working in a classified job for the
Employer, eligible to receive benefits hereunder.
Article II A. (1) of the Employer Benefit Plan provides:
Article II – Eligibility
Opinion of Trustees
Resolution of Dispute
Case No. 88-011
Page 3
The persons eligible to receive the health benefits pursuant to Article III are as follows:
A. Active Employees
Benefits under Article III shall be provided to any Employee who:
(1) is actively at work1 for the Employer on the effective date of the Wage
Agreement;
Article III D. (1) (a) of the Employer Benefit Plan provides:
Article III – Benefits
D. General Provisions
(1) Continuation of Coverage
(a) Layoff
If an Employee ceases work because of layoff, continuation of health, life
and accidental death and dismemberment insurance coverage is as follows:
Number of Hours Worked for
the Employer in the 24
Consecutive Calendar Month
Period Immediately Prior to Period of Coverage
the Employee’s Date Continuation from the
Last Worked Date Last Worked
2,000 or more hours Balance of month plus
12 months
500 or more but less than Balance of month plus
2,000 hours 6 months
Less than 500 hours 30 days
Discussion
1 Actively at work includes an Employee of the Employer
who was actively at work on January 31, 1988, and who
returns to active work with the Employer two weeks
after the effective date of the Wage Agreement.
Opinion of Trustees
Resolution of Dispute
Case No. 88-011
Page 4
The Respondent was signatory to the 1984 Wage Agreement. Although it has not executed the
1988 Wage Agreement, the Respondent signed an Interim Agreement on January 27, 1988, in
which it agreed to be bound by the terms and conditions of the “agreement successor to the 1984
National Agreement.” The signatory status of an Employer who has signed such an agreement
was addressed
by the Trustees in ROD 84-055 (enclosed herein). In their decision, the Trustees concluded that
such an Employer must be considered signatory to the successor Wage Agreement.
Accordingly, the Respondent, by virtue of its executed Interim Agreement, is considered
signatory to the 1988 Wage Agreement.
Article XX Section (c)(3)(i) of the 1984 and 1988 Wage Agreements requires a signatory
Employer to establish and maintain an Employer Benefit Plan to provide health and other nonpension benefits for its Employees. The Wage Agreements stipulate that benefits provided by
the Employer pursuant to such Plans shall be guaranteed during the terms of the Agreements by
that Employer at levels set forth in such Plans.
Article II A. of the Employer Benefit Plan provides health benefits coverage for active
Employees of a signatory Employer. Article III D. (1) (a) of the Employer Benefit Plan provides
continued benefits coverage for laid-off Employees for a defined period based upon the number
of hours worked for the Employer during the 24-month period immediately prior to the date last
worked. Inasmuch as the Complainants were employed in classified positions by the Respondent
until March 1, 1988, when they were laid off, the Respondent is responsible for providing health
and other non-pension benefits coverage for the Complainants throughout their individual
periods of eligibility as Employees and laid-off Employees, as determined under the terms of the
Employer Benefit Plan.
Opinion of the Trustees
The Respondent is responsible for providing continued health and other non-pension benefits
coverage for the Complainants throughout their individual periods of eligibility as Employees
and laid-off Employees, as determined under the terms of the Employer Benefit Plan.