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OPINION OF TRUSTEES
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In Re
Complainants: Laid-off Employees
Respondent: Employer
ROD Case No: 84-251 – September 21, 1987
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 benefits coverage under the terms of the Employer Benefit Plan.
Background Facts
The Complainants last worked in classified jobs for the Respondent on or about June 13, 1986,
when the mine was closed. The Complainants have indicated that the Respondent has not paid
the insurance premiums for their health benefits coverage since April 1986.
The Complainants claim that the Respondent did not provide the health benefits required under
the terms of the National Bituminous Coal Wage Agreement (“Wage Agreement”) of 1984. They
contend that the Respondent is responsible for providing their health benefits coverage as
Employees and laid-off Employees during their individual periods of eligibility as determined
under the terms of the Employer Benefit Plan.
Dispute
Whether the Respondent is responsible for providing health benefits coverage for the
Complainants as Employees and laid-off Employees.
Positions of the Parties
Position of the Complainants: The Respondent is responsible for providing health benefits for
the Complainants as Employees and laid-off Employees during their individual periods of
eligibility as determined under the terms of the Employer Benefit Plan.
Position of the Respondent: The Respondent has not responded to repeated correspondence from
Funds’ staff requesting its position in this dispute.
Opinion of Trustees
Resolution of Dispute
Case No. 84-251
Page 2
Pertinent Provisions
Article XX Section (c)(3)(i) of the National Bituminous Coal Wage Agreement of 1984 provides
in pertinent part:
(c) 1974 Plans and Trusts
(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 1984, 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) and (4) of the Employer Benefit Plan provides:
Article II – Eligibility
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:
Opinion of Trustees
Resolution of Dispute
Case No. 84-251
Page 3
(1) is actively at work* for the Employer on the effective date of the Wage
Agreement; or
________________________
*
Actively at work includes an Employee of the Employer who was actively at work on
September 30, 1984, and who returns to active work with the Employer two weeks after the
effective date of the Wage Agreement.
(4) A new Employee will be eligible for health benefits from the first day
worked with the Employer.
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
Article XX (c)(3)(i) of the National Bituminous Coal Wage Agreement of 1984 requires a
signatory Employer to establish and maintain an Employer Benefit Plan to provide health and
other non-pension benefits for its Employees. The Wage Agreement stipulates that benefits
Opinion of Trustees
Resolution of Dispute
Case No. 84-251
Page 4
provided by the Employer pursuant to such Plan shall be guaranteed during the term of the
Agreement by that Employer at levels set forth in such Plan.
Article II A. of the Employer Benefit Plan provides health benefits coverage for Employees
working in classified jobs for a signatory Employer. Article III D. (1)(a) provides that such
coverage shall continue for each laid-off Employee for a period based on the number of hours
worked by the Employee for the Employer during the 24-month period prior to the date last
worked. Inasmuch as the Complainants were active Employees of the Respondent until June 13,
1986, and laid-off Employees thereafter, the Respondent is responsible for providing health and
other non-pension benefits for the Complainants during their individual periods of eligibility as
determined under the terms of the Employer Benefit Plan.
Opinion of the Trustees
The Respondent is responsible for providing health and other non-pension benefits for the
Complainants during their individual periods of eligibility as determined under the terms of the
Employer Benefit Plan.
