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Reporter: [Dara Rees]

Coal mine layoffs put 100 people out of work

A local coal company lays off about one hundred coal miners in eastern Kentucky. Officials warned the miners about two months ago that layoffs were possible, and today the cuts were made. Officials say these are permanent layoffs for these miners in Pike and Letcher counties, and say the depressed coal market and the economy are to blame.

The one hundred layoffs are at Premier Elkhorn Coal Company's PE 4 and PE 5 mines... one in Pike County, the other at the Pike-Letcher County border. Officials say the market for coal is down.

Paul Matney with TECO Coal, the parent compnay of Premier Elkhorn Coal, says, "A lot of the steel companies and a lot of the some of the other customers have dramatically cut back orders. Which has also spilled over into the steam coal markets."

Several miners we spoke with say the warning about possible layoffs two months ago helped them prepare for the news.

Letcher County Judge Executive Jim Ward spoke with one coal official who is hopeful the market will soon turn around. He says, "He did say the price of coal was back up just a little, so that's a good sign that maybe it's moving back up to where there might not be any more layoffs."

Paul Matney says the coal industry is typically the last to feel the effects of a struggling economy. He says, "We're generally the last to feel the depressed conditions, but we're also generally the last when it picks back up."

Laid off employees will be paid through June 19th. Matney says right now, there are no more layoffs planned for TECO, the parent company of Premier Elkhorn Coal.


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