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OPINION OF TRUSTEES
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In Re
Complainant: Employees
Respondent: Employer
ROD Case No: 84-195 – 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
provision of benefits coverage for Employees under the terms of the Employer Benefit Plan.
Background Facts
The Complainants are classified employees of the Respondent, a signatory employer. The
representative for the Complainants has stated that the Respondent provided health and other
non-pension benefits coverage through an insurance carrier, New York Life, until March 31,
1986; no coverage was provided for the month of April 1986. The Respondent changed
insurance carriers and coverage is now being provided through Provident, effective May 1, 1986.
The Complainants ask that the Respondent be found liable for providing their benefits coverage
during the month of April 1986.
The Respondent has stated that it is currently providing benefits coverage for the Complainants.
The Respondent maintains that it cannot afford to pay the insurance premium for the
Complainants’ coverage through New York Life for the month of April.
Dispute
Whether the Respondent is responsible for providing benefits coverage for the Complainants
during April 1986?
Positions of the Parties
Position of the Complainants: The Respondent is responsible for the provision of health and
other non-pension benefits to the Complainants during April 1986.
Opinion of Trustees
Resolution of Dispute
Case No. 84-195
Page 2
Position of the Respondent: The Respondent cannot afford to pay the insurance premiums for the
Complainants’ coverage during April 1986.
Pertinent Provisions
Article XX(c)(3)(i) of the National Bituminous Coal Wage Agreement of 1984 provides:
(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. Such plans shall also include that each signatory Employer continue to
make the death benefit payments in pay status as of December 8, 1977, for
deceased Employees and Pensioners under the 1974 Pension Plan whose last
signatory classified employment was with such Employer, in the same manner
and in the same amounts as previously provided for in the 1974 Benefit Plan and
Trust. 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
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), (3) and (4) of the Employer Benefit Plan provide in pertinent part:
Article II – Eligibility
The persons eligible to receive the health benefits pursuant to Article III are as follows:
Opinion of Trustees
Resolution of Dispute
Case No. 84-195
Page 3
A. Active Employees
Benefits under Article Ill shall be provided to any Employee who:
(1) is actively at work* for the Employer on the effective date of the Wage
Agreement; or
(3) . . ., 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.
(4) A new Employee will be eligible for health benefits from the first day
worked with the Employer.
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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.
Discussion
Article XX (c)(3)(i) of the 1984 Wage Agreement requires a signatory employer to establish and
maintain an employer benefit plan to provide health and other non-pension benefits for its
Employees. Article Il A. of the Employer Benefit Plan provides benefits coverage for active
employees working in classified jobs for a signatory employer. Inasmuch as the Complainants
were actively employed in classified positions for the Respondent during April 1986, the
Respondent is responsible for providing their benefits coverage during the same period.
Although the Respondent has stated that it cannot afford to pay an insurance premium for the
month of April 1986, such a claim does not relieve the Respondent of its obligation to provide
health benefits to eligible parties under the terms of the Employer Benefit Plan.
Opinion of the Trustees
The Respondent is responsible for providing benefits coverage to eligible beneficiaries during
April 1986.