Coal layoffs loom for Murray Energy

CHARLESTON, W.Va.(WTVQ)-Coal giant, Murray Energy, issued notices to 4,400 employees giving them a heads up that their jobs could be on the line this September.

This announcement from the St. Clairsville, Ohio based company would affect workers in the Bluegrass at the company’s only underground mining operation in Western Kentucky as well as twelve other mines in five other states.

The company says the large layoffs are on the horizon because of President Barack Obama’s “ongoing destruction of the United States coal industry” and the increased switch to natural gas to generate electricity.

Bill Bissett, President of the Kentucky Coal Association, says in the past five years 50 major coal companies have filed for bankruptcy because of slumping markets.To stay afloat Murray mines have been operating on a reduced schedule since early this year.

According to Kentucky’s Energy and Environment Cabinet in the first quarter, from January to March of this year, employment at Kentucky coal mines has dropped by almost 18 percent. As of April 1st, 6,900 in the industry lost their job, that’s the lowest level since 1898.

Bissett says Murray Energy’s possible layoffs could also affect people with jobs in other industries like engineers, petroleum tank drivers, and hydraulics maintenance mechanics.

Bissett says, “It’s important to remember that coal mining jobs start at $65-70,000. So when you lose that coal mining livelihood you’re really putting at least 3 other Kentuckians out of work as well as countless induced jobs that are dependent on that coal miner for their livelihood. So the losses are much greater for that one person.”

The announcement comes just days after contract negotiations with the United Mine Workers of America were rejected by Union members. Bissett says, however, none of those union miners were from Kentucky.