Coal 1993

The most important event affecting the United States coal industry in 1993 was the strike by the United Mine Workers of America (UMWA). This was a series of selective strikes, beginning with a strike against four Peabody Holding affiliates on Feb. 2, following unsuccessful contract negotiations between the UMWA and the Bituminous Coal Operators' Association (BCOA). Although that strike ended on March 3, the failure to reach a new contract agreement led to walkouts at several Midwestern mines on May 10. During the summer, the strike expanded to include mines of 13 companies in seven states including Ohio, Pennsylvania, Illinois, Indiana, Kentucky, Virginia and West Virginia. About 17,000 miners were idled during the strike. As the prospects for a settlement diminished, the Secretary of Labor appointed a federal mediator. The mediation resulted in a five-year contract. In addition to increases in wages and pensions, it was agreed that 60% of new job openings would be filled by laid off and active UMWA miners. In return, companies won the right to establish more flexible work rules and scheduling of miners. While some health care benefits were expanded, the agreement established a new health care system that was designed to reduce costs. Preliminary Energy Information Administration (EIA) data indicate that US coal production fell by 5% in 1993, to 859 Mt (947 million st) (Table 1). The strike was one of the primary causes of the decline in production. Another significant cause was a 27% decline in coal exports. Also, a very small displacement of domestic coal production resulted from a rise in coal imports.