Tuesday, December 27, 2016

King Coal is dead, long live the king (Part 1)

Stand on a street corner in most West Virginia towns and shout “the coal industry is dead” and you can start a pretty good argument. You would be right that since 1920, coal mine employment has declined drastically in the state until today there aren’t enough miners to fill a small college football stadium. That’s a period of nearly 100 years.

Look at a graph of mining employment and you’ll question the intelligence of anybody who thinks those jobs are coming back. Chances are if they haven’t needed you in the last 96 years they probably don’t need you now. Mechanization, a decline in the amount of coal remaining, a shift toward more productive mines out west and the emergence of cheaper, cleaner natural gas are among the contributing factors, but ask any miner who’s to blame for him losing his job and he’ll tell you it was President Obama’s “war on coal.”

I know of people who used to be miners who have been laid off for several years. Their fathers and grandfathers were probably miners and it may go back farther than that. When they were working, they could make $90,000 to $100,000 a year with seniority and overtime, and there are few jobs in West Virginia that can provide that kind of paycheck, especially for people who may not have finished high school and never went to college.

The problem is, their current salary is $0, so you can do the math. A guy who made $100,000 four years ago and $0 for each of the past three years actually has an average annual salary of $25,000. If he doesn’t work for another year, it will drop to $20,000 and then to $16,666 so on. Yet, a lot of these guys won’t take another job that pays $25,000 a year because someone told them their mining jobs are coming back.
   
Revitalization of the coal industry would mean a lot to the unemployed miners who could go back to work to support themselves and their families, and if you have any empathy at all for people fighting through hard times then you have to consider that a good thing. A significant increase in coal production would put money in miners’ pockets which they would spend at stores and businesses in fading West Virginia communities that really need the cash.

It would also increase the amount of coal severance taxes and payroll taxes and other taxes paid into the state treasury which theoretically should benefit me and my family (and all other West Virginians) through the funding of better roads and schools and police protection and other services, even though no one in my family has ever worked in the coal industry.

I just don’t see that happening.

You can blame Obama and new environmental regulations for what’s happened to the coal industry, but he has only been president for eight years. The Clean Air Act was signed by President Richard Nixon way back in 1970, and if there actually was a “war on coal,” it probably started then.

You’d have to be blind or not paying attention to have missed the fact that coal mine employment in this state has declined from 800,000 at its peak to 14,000 now. Politics being what it is, I fully expect Governor-elect Jim Justice – who owns coal mines – to hire a few people as soon as he takes office and for Donald Trump to take credit for it.

But do I expect the coal industry to come back to life here? No, not when coal companies are laying off workers and stripping retired miners of their pensions and other benefits, and when electric utilities are shuttering aging coal plants and investing in natural gas.

Don’t take my word for it. Call up Murray Energy and ask when they plan to recall those tens of thousands of miners. Call Appalachian Power or FirstEnergy and ask when they plan to reopen coal-fired power plants. I suspect you’ll get a different answer than what Trump is out there selling.

Next in Part 2: The environmental consequences of increased coal production.

1 comment:

  1. You will find one good use for coal at Mia Margarita, a fine Italian eatery, in Bridgeport. They make amazingly tasty food in a coal-fired oven.

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