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OPINION OF TRUSTEES
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In Re
Complainants: Employees
Respondent: Employer
ROD Case No: 88-218 – February 23, 1990
Board of Trustees: Joseph P. Connors, Sr., Chairman; Paul R. Dean, Trustee; William Miller,
Trustee; Donald E. Pierce, Jr., Trustee; Thomas H. Saggau, 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 Employees under the terms of the Employer Benefit
Plan.
Background Facts
The Complainants are employed in classified positions by the Respondent, a signatory employer.
The representative for the Complainants states that beginning June 12, 1989 there was a work
stoppage at the Respondent’s operations.
The Respondent notified the Complainants by letter dated June 22, 1989, that their employerprovided health benefits coverage would be terminated as of June 23, 1989 because the
Complainants had not returned to work. The letter also stated that the Complainants could
choose to continue such coverage at their own expense.
According to the Complainants’ representative, the Complainants reported back to work on July
20, 1989 and found the gates of the Respondent’s operations locked; the Complainants were told
there was no work available. The Complainants returned to work on August 3, 1989. They were
laid off on December 29, 1989.
The representative for the Complainants maintains that, although the Respondent’s letter of June
22, 1989 states that the Complainants’ health benefits coverage was terminated on June 23, 1989,
the Respondent has not provided health benefits coverage for the Complainants since May 1,
1989. The Complainants have submitted copies of unpaid medical bills incurred by them since
May 1, 1989.
Dispute
Opinion of Trustees
Resolution of Dispute
Case No. 88-218
Page 2
Whether the Respondent is required to provide health benefits coverage for the Complainants
beyond May 1, 1989.
Positions of the Parties
Position of the Complainants: The Respondent is required to provide health benefits coverage
for the Complainants beyond May 1, 1989, during their employment, including the period during
the work stoppage that began on June 19, 1989, and during their individual periods of eligibility
for coverage 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 Agreement 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…. The plans established pursuant to this subsection are incorporated by
reference and made a part of this Agreement, and the terms and conditions under
which the health and other non-pension benefits will be provided under such
plans are as to be 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.
Opinion of Trustees
Resolution of Dispute
Case No. 88-218
Page 3
(4) “Employee” shall mean a person working in a classified lob for the
Employer, eligible to receive benefits hereunder.
Article II A. 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:
(1) is actively at works for the Employer on the effective date of the Wage
Agreement; or
(2) is on layoff or disabled from the Employer and had continuing eligibility
as of the effective date of the Wage Agreement for coverage under the
1984 Employer’s Benefit Plan (“prior Plan”) as a laid-off or disabled
employee. Coverage for such laid-off or disabled Employees shall not
continue beyond the date when they would no longer have been eligible
for such coverage under the provisions of the prior Plan.
(3) Except as provided in paragraph (2) above, any Employee of the
Employer who is not actively at work*
for the Employer on the effective
date of the Wage Agreement will not be eligible for coverage under the
Plan until he returns to active employment with the Employer.
Any Employee of the Employer who as of January 31, 1988, was eligible
for benefits under the prior Plan who is not scheduled to work within two
weeks after the effective date of the Wage Agreement because of lack of
work, such an Employee will, for purposes of this Plan, be considered
eligible for coverage under- this Plan as of the effective date of the Wage
Agreement but. as an Employee on layoff as of such date.
(4) A new Employee will be eligible for health benefits from the first day
worked with the Employer.
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Opinion of Trustees
Resolution of Dispute
Case No. 88-218
Page 4
*
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.
Article III D. (1) (a), (c) and (e) of the Employer Benefit Plan provide, in pertinent part:
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
2,000 hours plus 6 months
Less than 500 hours 30 days
(c) Leave of Absence
1. During any period for which an employee is granted an approved
leave of absence for the purpose of accepting temporary employment with
the United Mine Workers of America (UMWA) such Employee shall be
eligible to continue health, life and accidental death and dismemberment
insurance coverage for a period not to exceed 120 calendar days within
any 12-month period.
Opinion of Trustees
Resolution of Dispute
Case No. 88-218
Page 5
2. During any period for which an Employee is granted an approved
leave of absence for any other reason, such Employee’s eligibility for
health, life and accidental death and dismemberment insurance coverage
shall be terminated as of the day last worked and shall not be reinstated
until the Employee returns to active work except as provided in paragraph
3 below.
(e) Quit or Discharge
If an Employee quits (for any reason) or is discharged, health, life and
accidental death and dismemberment insurance coverage will terminate as of the
date last worked….
Discussion
The Complainants contend that the Respondent is required to provide health benefits coverage
beyond May 1, 1989, including the period during the work stoppage that began on June 12,
1989. Article II A. of the Employer Benefit Plan provides health benefits coverage for active
Employees. The Trustees have addressed the issue of an Employer’s obligation under the
Employer Benefit Plan to provide coverage for Employees during a work stoppage in ROD 88-
181 (copy enclosed herein). In their decision in ROD 88-181, which, absent any finding to the
contrary, assumed that the Wage Agreement was in full force and effect, the Trustees concluded
that under the Employer Benefit Plan, the Employer was responsible for providing health
benefits coverage for its Employees during the work stoppage. Accordingly, the Respondent is
responsible for providing health benefits coverage for the Complainants during the work
stoppage from June 12, 1989 through August 2, 1989. Article III D. (1)(a) 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 prior to the date last worked. Inasmuch as
the Complainants were classified Employees of the Respondent, the Respondent is responsible
for providing their health benefits coverage beyond May 1, 1989, during the period they were
performing classified work from May 1, 1989 through June 11, 1989, during the work stoppage
from June 12, 1989 through August 2, 1989, during the period they were performing classified
work from August 3, 1989 through December 29, 1989 and during their layoff that began on
December 29, 1989, consistent with the terms of the Employer Benefit Plan.
Opinion of the Trustees
Based upon the provisions of and consistent with the terms of the Employer Benefit Plan, the
Respondent is responsible for providing health benefits coverage to the Complainants and their
eligible dependents beyond May 1, 1989 for the period the Complainants were performing
classified work from May 1, 1989 through June 11, 1989, during the work stoppage from June
12, 1989 until the Complainants returned to work on August 3, 1989, during the period the
Complainants performed classified work from August 3, 1989 through December 29, 1989, and
during their individual periods of eligibility for coverage thereafter as laid-off Employees.
