Opinion of Trustees
Resolution of Dispute
Case No. 84-055
Page 1
October 1, 1985
(Opinion issued in letter form; name and address deleted)
Re: Resolution of Dispute
ROD Case No. 84-055
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 which you have
submitted on behalf of the Employees of the Golden Chip Coal Co., concerning the provision of
health benefits coverage for its Employees under the terms of the Employer Benefit Plan.
This dispute arises because effective January 31, 1985, the Employer ceased providing benefits
coverage to Employees and their eligible dependents under the Employer Benefit Plan
established pursuant to the National Bituminous Coal Wage Agreement of 1984. You have asked
that all outstanding bills incurred after January 31, 1985 be paid by the Employer and that the
Employees be reimbursed for all covered expenses.
In support of your position you have submitted copies of itemized health care invoices for
services incurred after health benefits coverage was terminated on January 31, 1985. Further,
you have stated that the Employer has asserted that health benefits coverage will be reinstated as
soon as it is financially able to provide it.
The Employer has failed to respond to repeated correspondence from the Trustees of the UMWA
Health and Retirement Funds requesting its position in this dispute. Therefore, the Trustees must
decide this dispute based on the information available.
Under Article XX C. (3)(i) of the National Bituminous Coal Wage Agreement of 1984, each
signatory Employer must maintain an Employer Benefit Plan (Plan) to provide, through an
insurance carrier(s), health and other non-pension benefits for its Employees. Under Article II A.
(1) and (4) of the Plan, persons who are actively at work for the Employer on the effective date
of the Wage Agreement are eligible to receive health benefits coverage pursuant to Article III.
Persons employed after the date of the Wage Agreement will be eligible from the first day
worked with the Employer.
According to a statement made by a company representative, the company was operating as of
June 7, 1985. Additionally, records maintained by the UMWA Health and Retirement Funds
indicate that on October 8, 1984, the Employer signed a Letter of Agreement in which it agreed,
among other things, to be bound by the terms and conditions of the “agreement successor to the
Opinion of Trustees
Resolution of Dispute
Case No. 84-055
Page 2
1981 National Agreement.” By virtue of this executed Letter of Agreement, the Employer must
be considered signatory to the 1984 Wage Agreement.
The Employer therefore is responsible to provide those benefits specified in the Agreement and
the Plans incorporated by reference therein. Consequently, the Employer is responsible for the
provision of health benefits coverage for its Employees at the level specified in the Employer
Benefit Plan established by the National Bituminous Coal Wage Agreement of 1984.
Sincerely,
________________________________
Joseph P. Connors, Sr., Chairman
________________________________
Paul R. Dean, Trustee
________________________________
William B. Jordan, Trustee
________________________________
William Miller, Trustee
________________________________
Donald E. Pierce, Jr., Trustee
