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Corporate Buyouts of Mines Play Part in Safety Issues

West Virginia was the second largest International Steel Group Inc. and buying
producer of coal in the United States in Bethlehem Steel Corp., Acme Steel Co. and
2005, producing 160 million tons or 13% Weirton Steel Co., all in bankruptcy at
of total production, while Wyoming was the time. However, the deals depended on
number one, producing 380 million tons, the United Steelworkers Union agreeing to
approximately 35% of the nation's total contract concessions and billions of
coal production. However, the coal dollars in unfunded pension benefits
produced by West Virginia is more in which were ultimately dumped on the
demand than that which is produced in federal pension benefits program by Ross
western states as it is considered a and now paid by the U.S. taxpayers.Unlike
cleaner burning coal.With demand for the steel business, however, coal mining
alternative energy sources in the U.S. at is dependent upon safety measures
an all time high, the price of coal necessary to execute every 24-hours,
doubled over the past two years, as requiring constant follow-up. It can mean
natural gas and oil prices have sky the difference between life and death.
rocketed with supplies diminishing, The learning curve has changed with
especially in the wake of Hurricane investors who did not originate from the
Katrina in the Gulf of Mexico in August mining industry and running mining
of 2005. The Gulf produces nearly 40% of operations, some of which have been
the nation's natural gas and refines closed for years, and housing a host of
nearly 30% of the nation's oil and is unsafe conditions much less present in a
still hampered by the storm's maintained mine. In addition, many
devastation. In 2006, coal is expected to unskilled miners are coming into the
provide over 50% of the energy necessary workforce in non-union environments and
for U.S. electric utilities and lax federal government oversight, in
speculators expect the future of the coal which many citations and fines in very
industry to extend its growth over the small amounts are doled out, rarely if
next decade, returning to its rate of ever shutting down a mine for unsafe
production prior to the 1970's.The working conditions.Much has been
tragedies of the 2005 hurricane season publicized about the number of citations
along the Gulf Coast as well as the Sago Mine received in 2005. MSHA levied
subsequent flooding of New Orleans, LA 208 citations, orders and/or safeguards.
served to expose flawed emergency Half of the citations were for
services systems on all levels of "significant violations" which generally
government in addition to failed levee commanded fines between $60.00 and
maintenance. Victims who endured $440.00. The fines totaled approximately
Hurricane Katrina and Hurricane Rita as $25,000. However, in the 11-week review
well as several other storms in ending December 22, 2005 and three times
Louisiana, Mississippi, parts of Texas as in a period of five days, MSHA cited the
well as Florida, have been promised that mine for 46 alleged violations with 18
government and its respective agencies deemed "unwarrantable failures" and with
would be examined and mistakes made would three still pending. According to Ben
be corrected. Yet it remains to be seen Hatfield, President of ICG, all
if proper funding oversight will be violations were corrected; however, the
followed through or if indeed lessons MSHA has yet to publicly release any
will be learned.Similarly, the mining documents nor will comment on the three
explosion of Sago Mine in Tallmansville, pending violations.Serious violations
WVA, in which 12 miners lost their lives which Sago was cited for included failing
on January 2, 2006, with one surviving to enforce an adequate ventilation plan,
miner who still remains in a coma as of a key to preventing the
week later, will be steeped in paperwork buildup of methane gases which occur
and months of several independent naturally underground, failing to conduct
investigations, including federal and safety inspections before each 8-hour
state hearings. While it would appear shift, 11 roof collapses over the course
that running a mining operation is fairly of the past year and dangerous buildup of
straight forward, the fact that the work flammable coal dust.While the ICG has
in this underground mine is done 25 skirted answering questions thus far, Ben
stories below the surface of the earth, Hatfield did lay blame on the inherited
makes it ripe for facts to be less than problems from the Anker group. But also
forthcoming. But maybe the legacy of the important to the upcoming investigations
tragedy of Sago will unveil the real cost will be if there were continued failure
of the purchase of mining operations in of safety inspections and prior to
the 21st century, by investors with entering the mine over the New Year's
little or no interest in the history of weekend, at which time the mine was shut
mining or its real inherent risks.The for two days. Closed mines can be deadly
evolution of mining technology as well as especially during winter, when methane
the work of the United Mine Workers accumulates faster due to cold
Association (UMWA) has led the way for temperatures and changes in barometric
miners' safety rights vastly improving pressure.In addition, Sago did not keep a
the lives of miners throughout the U.S. rescue team on site, like a good many
The UMWA was largely responsible for the operations due. And speculation of the
advent of the Federal Coal Mine Health delay in getting a team together was
and Safety Act of 1969, known as the Coal further hampered by federal and state
Act, which established health and safety workers who would normally be available,
standards for miners both in underground were not since January 2nd was an
and above-ground mines. The Bureau of observed Monday holiday following New
Mines was given the power to levy fines Year's Day. Since Sago chose to open
and criminal penalties on mines in knowing that it was a state and federal
violation of the law. In addition, free holiday it may have put its crews at
chest x-rays were available for unnecessary risk, as it took 11 hours for
underground miners as well as a a rescue team to be assembled. That will
compensation fund.The Coal Act was also be examined by the several
amended in 1977 in what is now known as investigations already having been
the Federal Mine Safety and Health Act, announced.The MSHA will conduct its own
or the Mine Act, which is the prevailing investigation, and West Virginia
legislation today. The Mine Act helped Governor, Joe Manchin, III, has hired
strengthened the Coal Act with better former Director of MSHA under President
enforcement of its statutes and combined Clinton, J. Javitt McAteer, to be special
federal safety and health regulations for advisor to the investigation for the
all mines, coal and non-coal, under the state of West Virginia. The White House
same piece of legislation. In addition, a will lodge another investigation with
new agency within the Department of requests by Senators and the House
Labor, known as the Mine Safety and Representatives calling for hearings on
Health Administration (MSHA) was Sago as well as on mine safety.Similar to
established with a director appointed by the discovered cuts in the funding of
the president of the U.S.The UMWA was levee maintenance after Hurricane Katrina
founded in Columbus, OH in 1890 with the hit New Orleans, funding for MSHA for
merger of the Knights of Labor Trade 2006 was cut $5 million from 2005. The
Assembly No. 135 and the National agency also has seen a decrease of 170
Progressive Union of Miners and Mine staffers since 2001. Also, 17 proposed
Laborers. Its initial constitution standards to further protect miners'
"barred discrimination based on race, safety and health were denied by MSHA.
religion, or national origin." It was a The entire budget for MSHA for 2006 is
leader in fighting racism and ethnic $280 million. It is expected that its
discrimination before the turn of the appropriations will be reviewed.Senator
20th century. Also included in their Robert Byrd (D-WVA) has announced that
early fights, the UMWA fought for the the first Congressional hearing on the
8-hour day in 1898, followed by Sago Mine will be held on January 19,
collective bargaining rights in 1933, 2005, which will include federal and
health and retirement benefits in 1946 state mine safety officials, labor and
and the eventual health and safety business representatives as well as
protections resulting in federal academic experts in mine safety
legislation in 1969.And perhaps most testifying. Senator Ted Kennedy (D-MA) as
important to the UMWA's accomplishments well as Senator Jay Rockefeller (D-WVA)
was its plowing the way for the National have also called for a series of Senate
Industrial Recovery Act, which granted hearings on the broader issues impacting
workers the right to form unions and mine safety. Representative George Miller
bargain collectively with their (D-CA) and ranking member of the House
employers. And after the success of Education and Workforce Committee has
organizing the nation's coal miners, the requested all documents relevant to the
UMWA extended its work to the steel and Sago mine disaster from Labor Secretary,
auto industries in order to help those Elaine Chao. Rep. Miller expects to hold
workers organize.While fatalities in the hearings after the Senate hearings. No
mines have fallen significantly over the reports for any of the investigations,
past century and working conditions however, are expected before July
improved, by the 1980's many of the 2006.The Government Accountability Office
smaller mines went out of business, with in 2003 found that over the past decade,
more nuclear power plants coming online inspectors had often failed to ensure
and the with the oil crisis of the 1970's that violations were corrected by
supposedly over. Coal became less of a deadlines. In addition, there has been
necessity. Many mines which remained criticism that political appointees
opened decided to hire only non-union running MSHA are primarily former mining
personnel. With fewer jobs available in executives from the private sector, and
rural communities, workers became willing there exists a fundamental conflict of
to forego union benefits and guaranteed interest in issuing citations and such
pension plans. They sacrificed the diminutive fines. Further, the Congress
transparency with management regarding has not held one hearing in either the
safety concerns which the union provided Senate or House on mining safety issues
them and without fear of since 2001.On September 23, 2001, 13 coal
retribution.Today, according to Cecil E. miners died at the Jim Walter Resources
Roberts, President of the UMWA, only (JWR) Blue Creek No. 5 mine in Brookwood,
32-35% of all mines are union shops. With Alabama. In June 2003, the Federal Mine
the majority of today's miners comprised Safety and Health Administration fined
of an aging workforce in their late 40's Walter Industries more than $400,000 for
and 50's facing retirement, cash bonuses eight safety violations that "directly
and higher salaries are luring the next contributed" to the 2001 accident. The
generation, now in their 20's. In the company subsequently appealed the fine.
past 20 years as mines shut down and In November of 2005, an administrative
union-busting was rampant, workers were law judge on behalf of MSHA threw out six
headed to other cities for more lucrative of the eight safety violations and
manufacturing jobs. But with steel mills slashed the fines to $3,000. Let us hope
on the decline, textile mills losing out that history does not repeat itself and
to overseas manufacturing and impending that we learn from this crisis. Here is
layoffs of automakers, the coalmines are but one more opportunity to do right by
becoming the last bastion for those our miners. They deserve at least that
living in communities where the average much.Diane M. Grassi is a freelance
salary is $25,000. Non-union miners can columnist, reporting and writing
look forward to earning twice that commentary on current events of the day
amount.However, the recent history of the providing honest and often politically
Sago Mine as well as others its size is incorrect assessments. From U.S. public
not unlike that which has become of other policy to Major League Baseball, she is
major industries in the 21st century, an eclectic thinker, and demanding of her
with individual companies and its workers readers to reflect on their own thinking
left victim to bankruptcy or corporate patterns from an alternative perspective.
takeover. The Sago Mine, which had 145 Whether you agree with her or not, Diane
employees prior to January 2nd, was M. Grassi will have you coming back to
operated by Anker West Virginia Mining note her opinions, and if at best she
Co. until November 2005. The wakes you up, then her goal will have
International Coal Group Inc. (ICG), been accomplished.
purchased it in April 2005, and completed Ms. Grassi is featured with the online
its purchase in November 2005 at which publications: New Media Journal.us;
point it took over Sago's operation.Famed American Chronicle; Mich News.com; the
New York investment financier and Federal Observer; Opinions Editorials;
billionaire, Wilbur Ross, formed ICG in the Conservative Voice; the Las Vegas
May 2004, now listed on the NY Stock Penny Press; the Sierra Times as well as
Exchange, buying up coalmines belonging many others. She also writes regular
to Horizon Natural Resources. One of columns on Major League Baseball where
those holdings was the Sago Mine. Ross' she is a featured online columnist with
purchase of Sago followed his fray into The Diamond Angle Baseball Ezine and
the steel industry, founding the Sports-Central.org. Ms.




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