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OPINION OF TRUSTEES
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In Re
Complainant: Laid-off Employees
Respondent: Employer
ROD Case No: 84-174 – September 30, 1986
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
level of health benefits coverage under the terms of the Employer Benefit Plan.
Background Facts
Respondent operated as a signatory employer between April 1985 and December 1985. There is
some indication that the Respondent contracted with the Small Coal Operators Association
(SCOA) for the provision of employee health benefits during at least part of this period of
operation. The Respondent ceased operations on December 13, 1985 and laid off its Employees,
including the Complainants. In a separate administrative proceeding, the Funds has determined
that, as of December 14, 1985, the Respondent is no longer in business for purposes of Article II
E. (4) of the UMWA 1974 Benefit Plan.
The Complainants’ representative has submitted medical bills incurred by the Complainants
between April and December 1985 while employed by the Respondent. Payment of these bills
has been refused. The Complainants’ representative contends that the Respondent is responsible
for the Complainants’ health benefits coverage between April 1985 and December 13, 1985.
Dispute
Whether the Respondent is responsible for the provision of health benefits for its Employees.
Positions of the Parties
Position of the Complainants: The Respondent is responsible for providing health benefits for
the Complainants as Employees.
Opinion of Trustees
Resolution of Dispute
Case No. 84-174
Page 2
Position of the Respondent: The Respondent has not responded to repeated correspondence from
the Funds regarding its position in this dispute.
Pertinent Provisions
Article XX Section (c)(3)(i) of the National Bituminous Coal Wage Agreement of 1984
provides, in pertinent part:
Section (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… 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 (coal company).
(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. (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
Opinion of Trustees
Resolution of Dispute
Case No. 84-174
Page 3
Benefits under Article III shall be provided to an Employee who:
(4) A new Employee will be eligible for health benefits from the
first day worked with the Employer.
Discussion
Articles XX(c)(3)(i) of the 1984 National Bituminous Coal Wage Agreement and Article II A of
the Employer Benefit Plan require a signatory Employer to provide health and other non-pension
benefits to its active Employees. Article XX(c)(3)(i) of the Wage Agreement further requires that
“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.”
Although the Respondent appears to have contracted with the SCOA for the provision of health
benefits coverage to its Employees, such contract does not relieve the Respondent of its primary
obligation to provide health benefits to the its Employees under the Wage Agreement. Inasmuch
as the Complainants satisfied the definition of active Employees as set forth in Article I(4) and
Article II A.(4) of the Employer Benefit Plan, the Respondent is responsible for the provision of
their health benefits pursuant to Article XX (c)(3)(i) of the 1984 Wage Agreement.
Opinion of the Trustees
The Respondent is responsible for the provision of health benefits coverage to the Complainants
at the level set forth in the Employer Benefit Plan for that period prior to December 14, 1988
during which they were active employees or entitled to a period of continued coverage.