A bit of American history


Corporate Buyouts of Mines Play Part in Safety Issues

West Virginia was the second largest producerAcme Steel Co. and Weirton Steel Co., all in
of coal in the United States in 2005,bankruptcy at the time. However, the deals
producing 160 million tons or 13% of totaldepended on the United Steelworkers Union
production, while Wyoming was number one,agreeing to contract concessions and billions
producing 380 million tons, approximately 35%of dollars in unfunded pension benefits which
of the nation's total coal production.were ultimately dumped on the federal pension
However, the coal produced by West Virginiabenefits program by Ross and now paid by the
is more in demand than that which is producedU.S. taxpayers.Unlike the steel business,
in western states as it is considered ahowever, coal mining is dependent upon safety
cleaner burning coal.With demand formeasures necessary to execute every 24-hours,
alternative energy sources in the U.S. at anrequiring constant follow-up. It can mean the
all time high, the price of coal doubled overdifference between life and death. The
the past two years, as natural gas and oillearning curve has changed with investors who
prices have sky rocketed with suppliesdid not originate from the mining industry
diminishing, especially in the wake ofand running mining operations, some of which
Hurricane Katrina in the Gulf of Mexico inhave been closed for years, and housing a
August of 2005. The Gulf produces nearly 40%host of unsafe conditions much less present
of the nation's natural gas and refinesin a maintained mine. In addition, many
nearly 30% of the nation's oil and is stillunskilled miners are coming into the
hampered by the storm's devastation. In 2006,workforce in non-union environments and lax
coal is expected to provide over 50% of thefederal government oversight, in which many
energy necessary for U.S. electric utilitiescitations and fines in very small amounts are
and speculators expect the future of the coaldoled out, rarely if ever shutting down a
industry to extend its growth over the nextmine for unsafe working conditions.Much has
decade, returning to its rate of productionbeen publicized about the number of citations
prior to the 1970's.The tragedies of the 2005Sago Mine received in 2005. MSHA levied 208
hurricane season along the Gulf Coast as wellcitations, orders and/or safeguards. Half of
as the subsequent flooding of New Orleans, LAthe citations were for "significant
served to expose flawed emergency servicesviolations" which generally commanded fines
systems on all levels of government inbetween $60.00 and $440.00. The fines totaled
addition to failed levee maintenance. Victimsapproximately $25,000. However, in the
who endured Hurricane Katrina and Hurricane11-week review ending December 22, 2005 and
Rita as well as several other storms inthree times in a period of five days, MSHA
Louisiana, Mississippi, parts of Texas ascited the mine for 46 alleged violations with
well as Florida, have been promised that18 deemed "unwarrantable failures" and with
government and its respective agencies wouldthree still pending. According to Ben
be examined and mistakes made would beHatfield, President of ICG, all violations
corrected. Yet it remains to be seen ifwere corrected; however, the MSHA has yet to
proper funding oversight will be followedpublicly release any documents nor will
through or if indeed lessons will becomment on the three pending
learned.Similarly, the mining explosion ofviolations.Serious violations which Sago was
Sago Mine in Tallmansville, WVA, in which 12cited for included failing to enforce an
miners lost their lives on January 2, 2006,adequate ventilation plan,
with one surviving miner who still remains inkey to preventing the buildup of methane
a coma as of a week later, will be steeped ingases which occur naturally underground,
paperwork and months of several independentfailing to conduct safety inspections before
investigations, including federal and stateeach 8-hour shift, 11 roof collapses over the
hearings. While it would appear that runningcourse of the past year and dangerous buildup
a mining operation is fairly straightof flammable coal dust.While the ICG has
forward, the fact that the work in thisskirted answering questions thus far, Ben
underground mine is done 25 stories below theHatfield did lay blame on the inherited
surface of the earth, makes it ripe for factsproblems from the Anker group. But also
to be less than forthcoming. But maybe theimportant to the upcoming investigations will
legacy of the tragedy of Sago will unveil thebe if there were continued failure of safety
real cost of the purchase of mininginspections and prior to entering the mine
operations in the 21st century, by investorsover the New Year's weekend, at which time
with little or no interest in the history ofthe mine was shut for two days. Closed mines
mining or its real inherent risks.Thecan be deadly especially during winter, when
evolution of mining technology as well as themethane accumulates faster due to cold
work of the United Mine Workers Associationtemperatures and changes in barometric
(UMWA) has led the way for miners' safetypressure.In addition, Sago did not keep a
rights vastly improving the lives of minersrescue team on site, like a good many
throughout the U.S. The UMWA was largelyoperations due. And speculation of the delay
responsible for the advent of the Federalin getting a team together was further
Coal Mine Health and Safety Act of 1969,hampered by federal and state workers who
known as the Coal Act, which establishedwould normally be available, were not since
health and safety standards for miners bothJanuary 2nd was an observed Monday holiday
in underground and above-ground mines. Thefollowing New Year's Day. Since Sago chose to
Bureau of Mines was given the power to levyopen knowing that it was a state and federal
fines and criminal penalties on mines inholiday it may have put its crews at
violation of the law. In addition, free chestunnecessary risk, as it took 11 hours for a
x-rays were available for underground minersrescue team to be assembled. That will also
as well as a compensation fund.The Coal Actbe examined by the several investigations
was amended in 1977 in what is now known asalready having been announced.The MSHA will
the Federal Mine Safety and Health Act, orconduct its own investigation, and West
the Mine Act, which is the prevailingVirginia Governor, Joe Manchin, III, has
legislation today. The Mine Act helpedhired former Director of MSHA under President
strengthened the Coal Act with betterClinton, J. Javitt McAteer, to be special
enforcement of its statutes and combinedadvisor to the investigation for the state of
federal safety and health regulations for allWest Virginia. The White House will lodge
mines, coal and non-coal, under the sameanother investigation with requests by
piece of legislation. In addition, a newSenators and the House Representatives
agency within the Department of Labor, knowncalling for hearings on Sago as well as on
as the Mine Safety and Health Administrationmine safety.Similar to the discovered cuts in
(MSHA) was established with a directorthe funding of levee maintenance after
appointed by the president of the U.S.TheHurricane Katrina hit New Orleans, funding
UMWA was founded in Columbus, OH in 1890 withfor MSHA for 2006 was cut $5 million from
the merger of the Knights of Labor Trade2005. The agency also has seen a decrease of
Assembly No. 135 and the National Progressive170 staffers since 2001. Also, 17 proposed
Union of Miners and Mine Laborers. Itsstandards to further protect miners' safety
initial constitution "barred discriminationand health were denied by MSHA. The entire
based on race, religion, or national origin."budget for MSHA for 2006 is $280 million. It
It was a leader in fighting racism and ethnicis expected that its appropriations will be
discrimination before the turn of the 20threviewed.Senator Robert Byrd (D-WVA) has
century. Also included in their early fights,announced that the first Congressional
the UMWA fought for the 8-hour day in 1898,hearing on the Sago Mine will be held on
followed by collective bargaining rights inJanuary 19, 2005, which will include federal
1933, health and retirement benefits in 1946and state mine safety officials, labor and
and the eventual health and safetybusiness representatives as well as academic
protections resulting in federal legislationexperts in mine safety testifying. Senator
in 1969.And perhaps most important to theTed Kennedy (D-MA) as well as Senator Jay
UMWA's accomplishments was its plowing theRockefeller (D-WVA) have also called for a
way for the National Industrial Recovery Act,series of Senate hearings on the broader
which granted workers the right to formissues impacting mine safety. Representative
unions and bargain collectively with theirGeorge Miller (D-CA) and ranking member of
employers. And after the success ofthe House Education and Workforce Committee
organizing the nation's coal miners, the UMWAhas requested all documents relevant to the
extended its work to the steel and autoSago mine disaster from Labor Secretary,
industries in order to help those workersElaine Chao. Rep. Miller expects to hold
organize.While fatalities in the mines havehearings after the Senate hearings. No
fallen significantly over the past centuryreports for any of the investigations,
and working conditions improved, by thehowever, are expected before July 2006.The
1980's many of the smaller mines went out ofGovernment Accountability Office in 2003
business, with more nuclear power plantsfound that over the past decade, inspectors
coming online and the with the oil crisis ofhad often failed to ensure that violations
the 1970's supposedly over. Coal became lesswere corrected by deadlines. In addition,
of a necessity. Many mines which remainedthere has been criticism that political
opened decided to hire only non-unionappointees running MSHA are primarily former
personnel. With fewer jobs available in ruralmining executives from the private sector,
communities, workers became willing to foregoand there exists a fundamental conflict of
union benefits and guaranteed pension plans.interest in issuing citations and such
They sacrificed the transparency withdiminutive fines. Further, the Congress has
management regarding safety concerns whichnot held one hearing in either the Senate or
the union provided them and without fear ofHouse on mining safety issues since 2001.On
retribution.Today, according to Cecil E.September 23, 2001, 13 coal miners died at
Roberts, President of the UMWA, only 32-35%the Jim Walter Resources (JWR) Blue Creek No.
of all mines are union shops. With the5 mine in Brookwood, Alabama. In June 2003,
majority of today's miners comprised of anthe Federal Mine Safety and Health
aging workforce in their late 40's and 50'sAdministration fined Walter Industries more
facing retirement, cash bonuses and higherthan $400,000 for eight safety violations
salaries are luring the next generation, nowthat "directly contributed" to the 2001
in their 20's. In the past 20 years as minesaccident. The company subsequently appealed
shut down and union-busting was rampant,the fine. In November of 2005, an
workers were headed to other cities for moreadministrative law judge on behalf of MSHA
lucrative manufacturing jobs. But with steelthrew out six of the eight safety violations
mills on the decline, textile mills losingand slashed the fines to $3,000. Let us hope
out to overseas manufacturing and impendingthat history does not repeat itself and that
layoffs of automakers, the coalmines arewe learn from this crisis. Here is but one
becoming the last bastion for those living inmore opportunity to do right by our miners.
communities where the average salary isThey deserve at least that much.Diane M.
$25,000. Non-union miners can look forward toGrassi is a freelance columnist, reporting
earning twice that amount.However, the recentand writing commentary on current events of
history of the Sago Mine as well as othersthe day providing honest and often
its size is not unlike that which has becomepolitically incorrect assessments. From U.S.
of other major industries in the 21stpublic policy to Major League Baseball, she
century, with individual companies and itsis an eclectic thinker, and demanding of her
workers left victim to bankruptcy orreaders to reflect on their own thinking
corporate takeover. The Sago Mine, which hadpatterns from an alternative perspective.
145 employees prior to January 2nd, wasWhether you agree with her or not, Diane M.
operated by Anker West Virginia Mining Co.Grassi will have you coming back to note her
until November 2005. The International Coalopinions, and if at best she wakes you up,
Group Inc. (ICG), purchased it in April 2005,then  her  goal  will have been accomplished.
and completed its purchase in November 2005
at which point it took over Sago'sMs. Grassi is featured with the online
operation.Famed New York investment financierpublications: New Media Journal.us; American
and billionaire, Wilbur Ross, formed ICG inChronicle; Mich News.com; the Federal
May 2004, now listed on the NY StockObserver; Opinions Editorials; the
Exchange, buying up coalmines belonging toConservative Voice; the Las Vegas Penny
Horizon Natural Resources. One of thosePress; the Sierra Times as well as many
holdings was the Sago Mine. Ross' purchase ofothers. She also writes regular columns on
Sago followed his fray into the steelMajor League Baseball where she is a featured
industry, founding the International Steelonline columnist with The Diamond Angle
Group Inc. and buying Bethlehem Steel Corp.,Baseball Ezine and Sports-Central.org. Ms.



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