The United Mine Workers of America has reached a tentative deal with Alpha Natural Resources and Contura Energy on a labor contract at the producers' Central Appalachian and Northern Appalachian operations.
The union said the agreement with Contura would cover nearly 800 workers at the Cumberland and Emerald mines in Greene County, Pennsylvania; the McClure preparation plant in Dickenson County, Virginia; and the Power Mountain preparation plant in Nicholas County, West Virginia.
Contura, a new company made up of a group of Alpha's first-lien lenders, is taking over a portion of Alpha's assets in a stalking-horse deal as the bankrupt producer emerges from Chapter 11.
The union's tentative labor agreement also covers more than 100 members working at preparation plants in West Virginia that Alpha will retain following bankruptcy.
"We are pleased that a tentative settlement with the UMWA could be reached, pending an affirmative majority vote by the union-represented workforce," Alpha said in a statement. "If approved, this fair and thoughtfully negotiated settlement would signify a major milestone in Alpha's restructuring with regard to cost savings, while providing jobs and keeping production operations running."
Neither Alpha nor the UMWA released specifics of the deal. The union said details would not be announced until after the agreement is ratified.
UMWA members will vote on the deal Thursday.
"This has been a long and difficult set of negotiations," UMWA International President Cecil Roberts said in a statement. "It is never easy bargaining with a company in bankruptcy, especially one that has a judge's order in its back pocket that eliminates the existing agreement, wipes out retiree health care and ends pension contributions.
"But the devastation to America's coal industry is undeniable," Roberts said. "This is the last of three companies that filed bankruptcy in 2015 to emerge, and we sincerely hope there will be no more. Workers always come last in bankruptcy proceedings and retirees suffer significant loss."
Union members' approval of the deal with Alpha and Contura is not a foregone conclusion after they rejected a tentative agreement with the Bituminous Coal Operators Association two weeks ago.
UMWA's current labor contract with BCOA, whose largest member is Murray American Energy, expires this year. The proposed 5 1/2-year deal would have overridden the current agreement at the end of June and extended through 2021.
UMWA spokesman Phil Smith said Monday he is unaware of any talks between the union and BCOA since the proposal was rejected.
A Murray spokesman on Monday declined to comment.
