Management - Labor Relations

12 Months Ended

Dec. 31, 2019

Risk Management Labor Relations [Abstract]

Management — Labor Relations

On December 31, 2019, the Company had approximately 6,600 employees worldwide, including approximately 5,000 hourly employees; the employee amounts exclude employees that were employed at operations classified as discontinued operations. Approximately 42% of those hourly employees were represented by organized labor unions and were employed by mines that generated 19% of the Company’s 2019 coal production from continuing operations. In the U.S., two mines are represented by an organized labor union. In Australia, the coal mining industry is unionized and the majority of hourly workers employed at the Company’s Australian mining operations are members of trade unions. The Construction, Forestry, Maritime, Mining and Energy Union generally represents the Company’s Australian subsidiaries’ hourly production and engineering employees, including those employed through contract mining relationships. The Company believes labor relations with its employees are good. Should that condition change, the Company could experience labor disputes, work stoppages or other disruptions in production that could negatively impact the Company’s results of operations and cash flows.

The following table presents the Company’s active mining operations as of December 31, 2019 in which the employees are represented by organized labor unions:



Mine		Current Agreement Expiration Date

U.S.
Kayenta ⁽¹⁾		September 2019
Shoal Creek ⁽²⁾		April 2021
Australia
Owner-operated mines:
North Goonyella ⁽³⁾		December 2018
Millennium ⁽⁴⁾		March 2019
Wilpinjong ⁽⁵⁾		May 2020
Moorvale ⁽⁶⁾		June 2020
Metropolitan ⁽⁷⁾		January 2021
Wambo Underground ⁽⁸⁾		March 2021
Coppabella ⁽⁹⁾		June 2021
Wambo Open-Cut ⁽⁸⁾		March 2022

⁽¹⁾

Prior to its closure in 2019, hourly workers at the Company’s Kayenta Mine in Arizona were represented by the UMWA under the Western Surface Agreement, which was effective through September 16, 2019. This agreement covered mostly now terminated hourly employees who generated approximately 3% of the Company’s U.S. production during the year ended December 31, 2019. The Company is in negotiations with the UMWA for an agreement covering the hourly workers expected to be involved in mining reclamation.

⁽²⁾

Hourly workers at the Company’s Shoal Creek Mine in Alabama are represented by the UMWA under the Shoal Creek Wage Agreement, which is effective through April 1, 2021. This agreement covers approximately 11% of the Company’s U.S. subsidiaries’ hourly employees who generated approximately 1% of the Company’s U.S. production during the year ended December 31, 2019. The Company acquired the Shoal Creek Mine on December 3, 2018, as further described in Note 3. “Acquisition of Shoal Creek Mine.”


⁽³⁾	Employees of the North Goonyella Mine operated under a separate labor agreement which expired in December 2018. Due to the idling of the mine, as further described in Note 22. “Other Events,” hourly employees were terminated and there are no current negotiations for a new labor agreement.

⁽⁴⁾

The current labor agreement for Millennium Mine expired in March 2019 and the Company has announced plans to close the mine in 2020. The Company, employees and unions agreed via a memorandum of understanding to an extension of the expired agreement through March 2020, and a new labor agreement will not be required. Hourly employees of this mine comprise approximately 1% of the Company’s Australian subsidiaries’ hourly employees, who generated approximately 2% of the Company’s Australian production during the year ended December 31, 2019.


⁽⁵⁾	The current Wilpinjong labor agreement for Wilpinjong Mine expires in May 2020. Hourly employees of this mine comprise approximately 25% of the Company’s Australian subsidiaries’ hourly employees, who generated approximately 54% of the Company’s Australian production during the year ended December 31, 2019.

⁽⁶⁾

Employees of the Company’s Moorvale Mine operate on individual contracts underpinned by a non-union enterprise agreement. Employees are managed according to their individual contracts rather than the enterprise agreement. The current memorandum of understanding agreeing to a rollover of the existing enterprise agreement expires in June 2020. Hourly employees of this mine comprise approximately 14% of the Company’s Australian subsidiaries’ hourly employees, who generated approximately 6% of the Company’s Australian production during the year ended December 31, 2019.

⁽⁷⁾

Employees of the Company’s Metropolitan Mine operate under a separate labor agreement, which expires in January 2021. There is also a deputy labor agreement which expires in April 2022. During 2019, the Company insourced the operation of the Metropolitan coal handling and preparation plant and the hourly employees are employed under a separate labor agreement that expires in May 2021. Hourly employees of this mine comprise approximately 14% of the Company’s Australian subsidiaries’ hourly employees, who generated approximately 6% of the Company’s Australian production during the year ended December 31, 2019.

⁽⁸⁾

Employees of the Wambo Open-Cut Mine operate under a separate enterprise agreement which will expire in March 2022. Negotiations for the new agreement concluded in the fourth quarter of 2019. There were market-related wage increases agreed over the three-year term of the new labor agreement. Employees of the Company's Wambo Underground Mine operate under a separate labor agreement. That agreement will expire in March 2021. The Wambo coal handling and preparation plant hourly employees are under a separate labor agreement that expires in December 2021. Hourly employees of these mines comprise approximately 24% of the Company’s Australian subsidiaries’ hourly employees, who generated approximately 22% of the Company’s Australian production during the year ended December 31, 2019.

⁽⁹⁾

Employees of the Company’s Coppabella Mine operate under a separate enterprise agreement which expires in June 2021. Hourly employees of this mine comprise approximately 22% of the Company’s Australian subsidiaries’ hourly employees, who generated approximately 9% of the Company’s Australian production during the year ended December 31, 2019.