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OPINION OF TRUSTEES
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In Re
Complainants: Employees
Respondent: Employer
ROD Case No: 88-035 – November 1, 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 for Employees under the terms of the Employer Benefit
Plan.
Background Facts
The Complainants are employed in classified positions with the Respondent. The representative
for the Complainants contends that the Respondent has not provided health benefits coverage for
the Complainants since April 1988, when the Complainants began working for the Respondent.
One of the Complainants has submitted copies of unpaid medical bills for services rendered
between April 25, 1988 and July 27, 1988. The Complainants ask whether the Respondent is
responsible for providing health benefits coverage for the Complainants as Employees and for
payment of the medical expenses incurred during their employment.
The Respondent is signatory to the National Bituminous Coal Wage Agreement (“Wage
Agreement”) of 1988.
Dispute
Whether the Respondent is responsible for providing health benefits coverage for the
Complainants as Employees and for payment of the unpaid medical bills incurred by the
Complainants and their eligible dependents.
Positions of the Parties
Position of the Complainants: The Respondent is responsible for providing health benefits
coverage for the Complainants as Employees and for payment or the medical expenses incurred
by the Complainants and their eligible dependents.
Opinion of Trustees
Resolution of Dispute
Case No. 88-035
Page 2
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 of 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 wad 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) 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.
(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
(4) A new Employee will be eligible for health benefits from the first day
worked with the Employer.
Opinion of Trustees
Resolution of Dispute
Case No. 88-035
Page 3
Discussion
Article XX Section (c)(3)(i) of the 1988 Wage Agreement requires an Employer to provide an
Employer Benefit Plan… “implemented through an insurance carrier(s), [for] health and other
non-pension benefits…” It 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.”
Article II. A of the Employer Benefit Plan provides health benefits coverage to active employees
working in classified jobs for a signatory Employer. Inasmuch as the Complainants are actively
employed in classified positions by the Respondent, the Respondent is responsible for providing
health benefits coverage for the Complainants and their eligible dependents under the terms of
the Employer Benefit Plan and for payment of the covered medical expenses incurred by the
Complainants and their eligible dependents.
Opinion of the Trustees
The Respondent is responsible for providing health benefits coverage for the Complainants as
Employees and for payment of the covered medical expenses incurred by the Complainants and
their eligible dependents during their employment with the Respondent.