On January 29, Patriot Coal Co. will begin Chapter 11 bankruptcy hearings in St. Louis, MO claiming that it's become a “victim of the markets” and can no longer pay its debts. These “debts” include millions of dollars of retiree health benefits. If the company goes under, the benefits may go along with it.
That's why the United Mine Workers of America (UMWA) is suing. Filed back in October, the lawsuit cites the Employee Retirement and Income Securities Act, which states that coal companies must provide health insurance for retired miners.
However, the UMWA isn't suing Patriot Coal.
Most of the 10,000 workers in the class action lawsuit have never actually worked for Patriot. They actually put in their time (many with upwards of 30 years of service) with Peabody Energy Corp. and Arch Coal Inc. The UMWA contends that Peabody and Arch sold off the benefits to a company that was doomed to fail, therefore getting rid of the debt and leaving thousands without health insurance.
How do you successfully phase out fossil fuel subsidies in less than 10 years? The first step would be identifying what a subsidy actually is.
And if you’re the British Government, you...