Mitt Loses: Coal Co. Firing Workers

[LadyTevar]

http://www.nbcnews.com/business/coal-co ... -1C6977698

At least one chief executive is making good on his pledge to cut jobs following President Barack Obama’s re-election this week.

Robert Murray, the chief executive of Ohio-based coal provider Murray Energy Corp., began laying off a small number of employees this week after Republican challenger Mitt Romney lost his bid for the White House.

The privately-held company, which had about 3,500 employees before the layoffs began, fired more than 150 employees at three locations this week. A spokesman, Gary Broadbent, said the layoffs were ongoing and these were just the latest announcements.

The layoff notices blamed Obama’s “war on coal” for the job cuts.

There were about 80,000 people employed in coal mining in the U.S. as of October, according to the Bureau of Labor Statistics. That’s actually more than when the nation went into recession in December of 2007, but it’s fewer than a year ago.

In general, the economy has slowly been adding jobs, and the unemployment rate has been falling. But some industries have continued to shed jobs even as conditions have improved generally.

Murray outlined his plans to cut jobs following the election in a staff meeting with about 50 employees Wednesday.

The agenda for the meeting, along with the text of Murray’s “prayer for America,” were provided to NBCNews.com by the company.

In the agenda, he predicted the total destruction of the coal industry by as early as 2030. He said conditions for his business would deteriorate because of more regulation and taxes, weaker economic activity and reduced energy pricing.

In the prayer, Murray wrote, in part:

“The American people have made their choice. They have decided that America must change its course, away from the principals of our Founders. And, away from the idea of individual freedom and individual responsibility. Away from capitalism, economic responsibility, and personal acceptance.”

He concluded by asking God for forgiveness for the layoff decisions.

“Lord, please forgive me and anyone with me in Murray Energy Corporation for the decisions that we are now forced to make to preserve the very existence of any of the enterprises that you have helped us build. We ask for your guidance in this drastic time with the drastic decisions that will be made to have any hope of our survival as an American business enterprise.”

About 100 of the layoffs are at UtahAmerican, the subsidiary that operates the Crandall Canyon Mine. In 2007, a collapse at that mine killed nine people. Two months ago the company agreed to pay about $1 million in civil penalties as part of a settlement related to failures and violations that led to the collapse.

Broadbent, the Murray Energy spokesman, said in an e-mail that the layoffs announced this week are not related to the disaster and penalties.

“Those are separate issues,” he wrote.

Several companies made headlines before the presidential election Tuesday for insinuating that they would fire workers if Romney was not elected.

you motherfucking, lying sack of shit

[Aaron MkII]

Yes, Obama has a lot to answer for but the idea that everything is his fault just shits me.

The economy is a result of decades of bad policy coming home to roost, policies that guys like this had a hand in. And to bring god into it to make people feel warm and fuzzy while you fuck them over...its pretty disgusting.

Conservatives really do seem to live in a bubble.

[Eframepilot]

There is no "War on Coal". Or if there is, it's being waged by the natural gas industry.

[gigabytelord]

Yes, Obama has a lot to answer for but the idea that everything is his fault just shits me.

The economy is a result of decades of bad policy coming home to roost, policies that guys like this had a hand in. And to bring god into it to make people feel warm and fuzzy while you fuck them over...its pretty disgusting.

Conservatives really do seem to live in a bubble.

You sir have no idea just how bad this shit is, it's not so much a bubble as it is a goddamned anti democrat theater shield.

Meanwhile the solar industry is growing by leaps and bounds here in the states.

http://www.renewableenergyworld.com/rea ... s-13k-jobs

[Aaron MkII]

No kidding, this election has been pretty eye opening for me.

[gigabytelord]

No kidding, this election has been pretty eye opening for me.

I give it ten years at the most, before solar energy takes over as the predominate form of energy production here, the industry is growing so fast and that growth is accelerating so quickly that unless something REALLY STUPID happens the coal industry may actually cease to be relevant relatively soon.

Edit: on a side note other forms of energy such as natural gas, which is MUCH cleaner, are already quickly eating up the coal industry's market share, I think natural gas is sitting as something like 27%

[Ahriman238]

Okay, how can he possibly justify the layoffs as a result of the election? Has Obama ever publicly decried coal? Has he done anything to inhibit the industry at all?

If you want to talk about the long-gone days of personal responsibility, start by showing some yourself and not blaming politicians or God for your decisions. Further, and I really don't know why this is, his claim that the country's re-election of Obama is a betrayal of America's base principles really gets under my skin, even though I voted for Stein and Republicans say crap like this all the time.

[Sea Skimmer]

Yes, Obama has spoke out and acted against coal, in fact his 2008 campaign made an explicit call to bankrupt the coal industry with cap and trade on CO2. That of course did not happen because it would have to be an act of congress, but under his administration the EPA has attempted to impose a number of major reductions on allowable non CO2 emissions on coal plants. Most of that has not been implemented because it is still tied up in court, or was already ruled illegal extensions of EPA power, but now he has another four years to keep trying.

Meanwhile use is down around IIRC 9% in the last five years, but this is almost entirely because of very low cost natural gas from fracking, and is is projected to loose another 9% of tonnage consumption in the next ten years from the same reason, all totally independent of enhanced environmental policies which could see reductions in addition to this. The power companies don't really seem to care either, you can build a fairly high (though not equal) capacity brand new gas turbine plant for the kind of money it takes to upgrade the emissions controls on a typical old coal fired plant. When you add cheaper fuel on top of that, and reduced maintenance costs, and the best possible startup-shutdown times of any form of power plant other then hydro, it makes precious little sense to upgrade coal even to meet current emissions standards. Meanwhile construction of new coal plants, while going along, certainly isn't picking up ground.

Natural gas fired gas turbines do really well in terms of CO2 emissions too, something its like 1 carbon atom per 20 hydrogen atoms, vs 2 carbon per 1 hydrogen for brown coal on average.. plus higher thermal efficiency, so the companies don't have to worry about a possible future cap and trade regime either. Solar, yeah that might happen, but right now the power industry is much more focused on natural gas fired plants as its future. It could change, but right now natural gas is so cheap the drilling companies are actually going bankrupt from the depressed price and inability to get it out of the state of Pennsylvania quickly enough. I dunno how the other fracking centers are doing on that note.

[gigabytelord]

I wonder if there are any programs which offer to retrain coal mine workers for work in a new energy industry, for instance a coal company is going out of business, so the ex-employees of that company get fast tracked training and employment in a newer more viable sector such as solar or wind or hell even gas.

I may dislike coal power, a lot, but I realise that pushing coal companies out of business means tens of thousands of people out of work, so I wonder if there are any programs or rather "incentives" available to give those people a chance at employment at alternate energy facilities.

[Block]

I wonder if there are any programs which offer to retrain coal mine workers for work in a new energy industry, for instance a coal company is going out of business, so the ex-employees of that company get fast tracked training and employment in a newer more viable sector such as solar or wind or hell even gas.

I may dislike coal power, a lot, but I realise that pushing coal companies out of business means tens of thousands of people out of work, so I wonder if there are any programs or rather "incentives" available to give those people a chance at employment at alternate energy facilities.

A lot of the state unemployment agencies do have work re-training programs through community colleges and technical schools, but whether or not that's a fast track thing I'm not sure.

[LadyTevar]

I will point out that this is the state where Massey Energy all but bribed state officials to "get rid of" a very competent Mine Inspector, because he was doing his job and finding problems at mines. This happened not 6 months before the Upper Big Branch mine disaster... which was one that the fired Mine Inspector had wrote up on violations before.

[gigabytelord]

I will point out that this is the state where Massey Energy all but bribed state officials to "get rid of" a very competent Mine Inspector, because he was doing his job and finding problems at mines. This happened not 6 months before the Upper Big Branch mine disaster... which was one that the fired Mine Inspector had wrote up on violations before.

Wow, I'm literally speechless... that's just incredible... how is this man not in jail? Fuck that, how is he not under the fucking jail?!

[Ritterin Sophia]

Just so you guys know, this is what Obama's "War on Coal" looks like.

From the WV Gazette.

[Ultonius]

How cost effective would it be to use coal as a feedstock for plastics manufacture? That could help keep the mines open even if coal lost popularity as an energy source.

[Broomstick]

Okay, how can he possibly justify the layoffs as a result of the election?

Strictly speaking, he doesn't have to justify them at all. He's the CEO and all states involved are presumably employment at will states. In "at will" states (pretty much all of them) an employer can fire anyone he wants for any reason he wants (outside of a very few exceptions).

It would be just as legal for him to say "my favorite baseball team lost the world series - I'm firing 150 people in protest". And yes, that IS perfectly legal under US law. It's stupid and asinine but it's legal.

[CaptJodan]

Additionally, in related news, other companies are following suit to lay off people or cut hours in response to Obama's reelection, with some businesses even targeting people they think voted for Obama's reelection.

I find this truly despicable behavior. Without words.

[Simon_Jester]

There's something to think about here the next time we talk about the Republicans being corporate-controlled. To a large extent, I think these companies are themselves controlled by the Republican framework of thought. They are so firmly convinced that Obama's re-election spells the doom of coal (for whatever reason) that they start firing people before they even find out a single one of Obama's policies that might affect the coal industry.

I mean, who do they go to for news and an understanding of how the economy works? I'm betting on Fox. Maybe they're just as propagandized as anyone else, just as ready to see Obama as the secret Muslim atheist communist Manchurian candidate out to destroy America. And maybe they think it actually makes sense to fire workers when Obama wins because of all the stuff they've been hearing about how bad he is.

[Zaune]

There's something to think about here the next time we talk about the Republicans being corporate-controlled. To a large extent, I think these companies are themselves controlled by the Republican framework of thought.

[...]

I mean, who do they go to for news and an understanding of how the economy works? I'm betting on Fox. Maybe they're just as propagandized as anyone else, just as ready to see Obama as the secret Muslim atheist communist Manchurian candidate out to destroy America. And maybe they think it actually makes sense to fire workers when Obama wins because of all the stuff they've been hearing about how bad he is.

I don't buy that. You don't get to be senior management in a successful business (or at least don't stay senior very long) unless you've got at least some critical thinking skills, and enough good sense to get your facts straight before you make a decision. I think the most likely explanation is the simplest; they're trying to deflect the blame so that the newly laid-off workers vent their frustrations on someone else.

[whackadoodle]

There's something to think about here the next time we talk about the Republicans being corporate-controlled. To a large extent, I think these companies are themselves controlled by the Republican framework of thought. They are so firmly convinced that Obama's re-election spells the doom of coal (for whatever reason) that they start firing people before they even find out a single one of Obama's policies that might affect the coal industry.

I mean, who do they go to for news and an understanding of how the economy works? I'm betting on Fox. Maybe they're just as propagandized as anyone else, just as ready to see Obama as the secret Muslim atheist communist Manchurian candidate out to destroy America. And maybe they think it actually makes sense to fire workers when Obama wins because of all the stuff they've been hearing about how bad he is.

Meh. Back during the 2000 election I had a friend who worked for a major rail car manufacturer. The company hired a consulting firm for advice as to how the election could affect business. Their advice? If Bush wins, plan on laying off production staff. My friend said that they were all encouraged to vote for Gore. Though, with Murray specifically, with his invocations of god at a press conference, I'd guess its just the plantation mentality most coal barons seem to be afflicted with at work. They are so used to getting their way on the plantation of WV that when something doesn't go their way, they have a hissyfit meltdown.

[whackadoodle]

Additionally, in related news, other companies are following suit to lay off people or cut hours in response to Obama's reelection, with some businesses even targeting people they think voted for Obama's reelection.

I find this truly despicable behavior. Without words.

Why? I mean, did you actually read the article you linked to? These are businesses, not welfare agencies. If they crunch the numbers for providing their employees with the minimum required vis a vis cutting their hours, and it turns out that cutting hours makes the most economic sense, then that's what they have to do.

Hell, the CEO of Papa John's was quoted in the article as saying that he thought that 100% of Americans having health coverage to be a good thing. He just didn't know how his company was going to be able to cover its required part of it.

All of the businesses named in the article are in the food services. You know, where the margins are paper-thin and labor is the single biggest cost of business.

[Starglider]

It would be just as legal for him to say "my favorite baseball team lost the world series - I'm firing 150 people in protest". And yes, that IS perfectly legal under US law. It's stupid and asinine but it's legal.

He's the CEO of a private company, but he's still required to obey the company charter, which is almost certainly to maximise returns to shareholders. Unless he has a majority shareholding, he can be voted out of the CEO position if he pisses off the shareholders enough. If he blatantly sacrifices the future profitability of the company for personal reasons he would be liable for prosecution by even minor shareholders for breech of fiduciary duty (in failing to execute the company charter and look after their interests). Not relevant in this case since the layoffs were happening anyway and the election-related grandstanding is just irrelevant hot air.

[CaptJodan]

Why? I mean, did you actually read the article you linked to? These are businesses, not welfare agencies. If they crunch the numbers for providing their employees with the minimum required vis a vis cutting their hours, and it turns out that cutting hours makes the most economic sense, then that's what they have to do.

Hell, the CEO of Papa John's was quoted in the article as saying that he thought that 100% of Americans having health coverage to be a good thing. He just didn't know how his company was going to be able to cover its required part of it.

All of the businesses named in the article are in the food services. You know, where the margins are paper-thin and labor is the single biggest cost of business.

Yes, I read the article. I read how previous plans were to increase prices in order to cover the costs of the new healthcare law, passing along the cost to consumers. Now, is he going to jack up prices AND lay off workers/reduce hours? If it was determined back in summer that a price cost of 11 to 14 cents was enough to offset the price of Obamacare, then why lay off? Do they somehow think that people won't pay it?

Also, I'm not buying his PR bullshit like you seem to be doing. He was an avid Romney supporter and contributor, and made comments that government running health care is the worst entity in the world to do so. Claiming on one hand that he was neither pro nor against the law, then going on about how this will be as bad as the post office does not show him to be neutral on the subject like he claims.

I also read the part about the Georgia business (which was not in food service) who laid off workers it thought voted for Obama, which given its targeted nature, has everything to do with revenge (also telling as it's Georgia, which goes consistently red and thus Obama votes had little actual effect on the elections save the popular vote) and should be illegal.

[whackadoodle]

Do they somehow think that people won't pay it?

Yes. You may not have noticed, but the big pizza chains have been in a price war since the crash in 2009. Apparently, Americans aren't going to pay even a little extra for their constipation-on-cardboard.

I also read the part about the Georgia business (which was not in food service) who laid off workers it thought voted for Obama, which given its targeted nature, has everything to do with revenge (also telling as it's Georgia, which goes consistently red and thus Obama votes had little actual effect on the elections save the popular vote) and should be illegal.

Dude, that alleged Georgia business example was a C-SPAN Washington Journal caller. I used to watch that show religiously, and let me tell you, every caller is a fucking crank. Hell, though, lets assume its the gospel truth; so what? He may very well have to lay off people in order to stay profitable. As to targeting those who voted for Obama - how could he know who did? I call bullshit. If he did, then let them bring complaint against him under the Hatch Act.

As to it being telling because the (non-existent) business is located in GA, look at my rail car company example above. It's in Georgia, as well. Must've been politics there too, right?

Folks, place blame where it belongs - The Affordable Health Care Act. Specifically, the part-time employee loophole that the authors of the bill created so that business could do exactly what they are doing.

[Losonti Tokash]

There is absolutely nothing different about today than if Romney had won. Obama would still be president, PPACA would still be the law, Democrats would still control the senate. It's entirely vindictive.

[Simon_Jester]

I don't buy that. You don't get to be senior management in a successful business (or at least don't stay senior very long) unless you've got at least some critical thinking skills, and enough good sense to get your facts straight before you make a decision. I think the most likely explanation is the simplest; they're trying to deflect the blame so that the newly laid-off workers vent their frustrations on someone else.

Zaune, it's not that simple.

Think about, say, the Soviet Union. Millions of members of the Soviet 'intelligentsia' of educated professional planners and thinkers were part of the USSR's system. These were the brightest people in Russia, a country which produces a lot of very clever people. They were senior managers, they were pretty damn successful. And by all evidence they quite sincerely believed in a lot of things you and I would consider just plain wrong.

You can assert that they didn't really believe it, but that's the words they spoke. That's in the documents they wrote. That's what they'd been taught in college and what they taught their children in college.

Turns out being good at designing weapons or coordinating the movement of tractors to Kazakhstan doesn't translate into being good at criticizing a political theory that you've been hearing reinforced your whole life. We're not talking about mindless drones here, these are people who can think very effectively on the right subject, but that doesn't help them much otherwise.

And that's even more true when YOU, personally, are a great example of the theory's ideal success story. The average CEO would probably love to believe that corporate executives are automatically the best at running everything, and that the market will fix everything. If such theories are true, then the CEO can feel good about being one of the greatest heroes of the free world. If they're not, then the CEO might have to question the justice and wisdom of his own actions. No one likes doing that.


So no, I don't really think that being a successful businessman means you are 'smart enough to know that' laissez-faire capitalism doesn't work. On the contrary, it's going to reinforce your faith in the market, which is good for you and most of your peers. You might have the analytical skills to find gaps in all this theory if you wanted, but why would you? You have real work to do!