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OPINION OF TRUSTEES
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In Re
Complainants: Employees and Pensioners
Respondent: Employer
ROD Case No: 84-575 – February 24, 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 under the terms of the Employer Benefit Plan.
Background Facts
The Complainants are active Employees and Pensioners whose last signatory classified
employment was with the Respondent. The representative for the Complainants has stated that
the Respondent has not paid the insurance premiums for the Complainants’ health benefits
coverage since October 1987. As a result, the Complainants have incurred unpaid bills for
medical services rendered subsequent to October 31, 1987. The representative contends that the
Respondent is responsible for providing health benefits coverage for the Complainants beyond
October 31, 1987.
Dispute
Whether the Respondent is responsible for providing health benefits coverage for the
Complainants beyond October 31, 1987.
Positions of the Parties
Position of the Complainants: The Respondent is responsible for providing health benefits
coverage for the Complainants beyond October 31, 1987.
Position of the Respondent: The Respondent has not responded to repeated correspondence from
Funds’ staff regarding its position in this dispute.
Pertinent Provisions
Article XX.(c)(3)(i) of the National Bituminous Coal Wage Agreement of 1984 provides in
pertinent part:
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Resolution of Dispute
Case No. 84-575
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(3)(i) Each signatory Employer shall establish and maintain an Employee benefit
plan to provide, implemented through an insurance carrier(s), health and other nonpension 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), (4) and (5) 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.
(5) “Pensioner” shall mean any person who is receiving a pension, other than
(i) a deferred vested pension based on less than 20 years of credited
service, or (ii) a pension based in whole or in part on years of service
credited under the terms of Article II G of the 1974 Pension Plan, or any
corresponding paragraph of any successor thereto, under the 1974 Pension
Plan (or any successor thereto), whose last classified signatory
employment was with the Employer, subject to the provisions of Article II
B of this Plan.
Article II A. (1) and (4) and B. (1) of the Employer Benefit Plan provide:
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:
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Resolution of Dispute
Case No. 84-575
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(1) is actively at work* for the Employer on the effective date of the Wage
Agreement; or
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* 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.
B. Pensioners
Health benefits and life insurance under Article III hereof shall be provided to Pensioners
as follows:
(1) Any Pensioner who is not again employed in classified signatory employment
subsequent to
(a) such Pensioner’s initial date of retirement under the 1974 Pension Plan,
and
(b) October 1, 1984, shall be eligible for coverage as a Pensioner under, and
subject to all other provisions of this Plan. Notwithstanding (i) and (ii) of
the definition of Pensioner in Article I(5) of this Plan, any such Pensioner
who was eligible for benefits under the 1974 Benefit Plan as a Pensioner
on December 5, 1977, shall be eligible for such benefits, subject to all
other provisions of this Plan.
Discussion
Article XX Section (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 as well as Pensioners whose last signatory
classified employment was with such Employer. The Wage Agreement stipulates that benefits
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 active
Employees working in a classified jobs for a signatory Employer. Article II B. establishes that
individuals who are eligible for pension benefits under the UMWA 1974 Pension Plan are
eligible for health benefits coverage under the Employer Benefit Plan. Inasmuch as the
Complainants are active Employees and Pensioners whose last signatory classified employment
was with the Respondent, the Respondent is responsible for providing health benefits coverage
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Resolution of Dispute
Case No. 84-575
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for the Complainants during their individual periods of eligibility beyond October 31, 1987,
consistent with the terms of the Employer Benefit Plan.
Opinion of the Trustees
The Respondent is responsible for providing health benefits coverage for the Complainants
during their individual periods of eligibility beyond October 31, 1987, consistent with the terms
of the Employer Benefit Plan.
