Member Article

Dispute over UK Coal’s Kellingley mine closure heats up as TUC wades in

This dispute over the closure of UK Coal’s Kellingley mine continues as the Trade Union Congress wades in, blaming the government for refusing to fund a long term solution to secure the UK’s coal mining industry.

The TUC says it will cost 2,000 jobs and leave UK businesses and householders at the mercy of overseas energy suppliers.

Coal unions welcomed the announcement this morning from Energy Minister Michael Fallon that around three-quarters of the jobs at two mines under threat, Thoresby in Nottinghamshire and Kellingley in North Yorkshire, would be secure for another year.

But the four unions – the NUM, BACM-TEAM, NACODS and GMB – expressed disappointment at the decision to axe 340 jobs immediately, as well as the government’s refusal to apply to Europe for permission to use state aid to keep the mines open until at least 2018.

Commenting on the announcement TUC general secretary Frances O’Grady said: “Faced with the choice between closing two of the UK’s three remaining coal mines next year or of fighting for their future, the government has gone for the short-term option and taken the easy way out.

“UK Coal is clearly in trouble. Miners and their families will be relieved to learn that ministers have avoided UK Coal’s impending insolvency by agreeing the terms of a repayable, fixed term, commercial loan.

“But that will come as small comfort to the 340 workers whose jobs disappear next month.

“But there is a far better, socially just alternative. Unions have presented the government with the case for a sensible rescue plan for the mines that would cost less than the final bill for closing Thoresby and Kellingley in May 2015.

“All ministers have to do is apply to Europe to use £60m of taxpayers’ money in state aid to protect the 2,000 jobs at risk, support the UK’s fledgling carbon capture & storage (CCS) industry using UK coal, and strengthen our energy security, rather than increase our dependency on Russian coal imports.

“Coal production has a future with CCS, but only if ministers are prepared to give the industry a fighting chance. Unions will continue to make the case for coal – a UK energy supply that is secure, cheap and one which means our energy bills are less susceptible to price fluctuations in the international energy market.”

Business and Energy Minister Michael Fallon said: “We are doing everything we can to help in this unique situation.

“Our commercial loan, as part of this private sector led initiative, can support a managed closure that is in the best interests of the taxpayer and employees. The only alternative was immediate insolvency.

“The proposal is for the Government to invest alongside private sector organisations, including an experienced coal operator. This provides reassurance on the deliverability of the closure plan and therefore the repayment of the Government loan.

“However, deep coal mining remains an inherently risky business. There is no value for money case for a level of investment that would keep the deep mines open beyond this managed wind-down period to Autumn 2015.

“It has been a real collective effort to get to this point, but this remains a challenging situation and all parties need to continue working closely together.

“The Job Centre Plus Rapid Response Service will be made available to help support the employees into new employment, and to arrange re-training where needed.”

This was posted in Bdaily's Members' News section by Clare Burnett .