Consumer Law

December ? A Very Messy Massey Month

By Joe Consumer

We thought we?d take this opportunity to update you on the goings on at Massey Energy, the nation?s most unsafe mining company.  (Recall that an April explosion at Massey's Upper Big Branch mine killed 29 miners).  We?ve covered Massey a number of times like here, here, here, but this December seemed especially eventful. 

Massey?s much-hated boss, Don Blankenship, finally quit.  But not before walking away with, ?$2.7 million, a free house for life, millions more in deferred compensation, and a ?salary continuation retirement benefit? of $18,241-a-month that will continue for 10 years after his departure at the end of the year.?Per W. Olstad, a lawyer with CtW Investment Group, a shareholder group that has pushed for Blankenship to step down, [called it], '[A]n egregious payout. It?s way beyond what he's earned. Given how destructive his mismanagement has been, he simply does not deserve it.'? (As we have noted, Blankenship's salary was $17.8 million last year; at the same time, the company was offering $3 million to famillies for the life of the miners killed at Upper Big Branch.)

Blankenship then went on to plead the Fifth at a government hearing on the explosion   He also threatened and tried to beat up an ABC News cameraman.  (See the man in action, below!) 

To follow up on our story about Kentucky?s Massey mine that is so unsafe that the Labor Department has moved to shut it down under federal supervision, last week, a federal judge rejected Massey?s motion to dismiss the government?s claim.  NPR reports, 

Massey Energy has already begun closing the mine. But Judge Thapar also ruled that the case can continue. The Labor Department argues in an amended complaint that about 60 mine workers at Freedom will be exposed to threatening conditions underground during the several months it will take to dismantle and remove equipment.

Here?s more about the battle between the government and Massey.  The company is also now weighing takeover offers.

And as for Massey?s miners, the company agreed to a fourth settlement stemming from the Upper Big Branch explosion, this one for the family of Benny Ray Willingham, killed at age 61 five weeks before he was scheduled to retire. (See one of our earlier posts, noting the reaction of Willingham?s daughter Michelle McKinney to Massey?s offer of  $3 million to each family, saying, ?her family isn't interested and she'd prefer to take every cent CEO Don Blankenship has.?)

And yes, there?s more. News broke a couple days ago that last month, a gay coal miner has sued a Massey subsidiary, ?alleging that co-workers in several mines have repeatedly harassed him because of his sexual orientation? including ?verbal abuse and invective and lewd gestures by his supervisors and other miners, even after he complained to management.?  For example,

For three months in early 2009, Hall worked at No. 5 Block Mine, where the superintendent knew him from the Winifrede mine and would laugh at the abuse directed at Hall, the suit maintains. Hall became worried when the slurs escalated to violent threats, including "I would like to see all [expletive] die."

In April 2010, Hall returned to the No. 2 Gas Mine, where mine foreman Randy Thomas engaged in persistent harassment, according to the suit. Mine superintendent Carl Lucas did nothing to stop the abuse, the suit alleges.

Eventually, Hall met with Spartan Mining Co. president John Jones, vice president Larry Ward and human resources director Kyle Bane, according to the suit. After promising to take care of the issue, they suspended Thomas for three days and transferred Hall to the Slab Camp Mine, where he continues to face threats and harassment, the suit maintains.

Hall accuses Spartan Mining Co. and its management of creating an oppressive and hostile work environment, and making no effort to resolve physical threats based on his sexual preference.

We can only hope for a better 2011.

Full post as published by ThePopTort on December 28, 2010 (boomark / email).