With So Many Mine Layoffs, What's the Future of Southern W.Va.'s Economy?

 

 

This story was produced as part of What’s Next, West Virginia?, a collaboration between West Virginia Public Broadcasting, West Virginia Center for Civic Life, and West Virginia Community Development Hub, among others.

Over the past two years, 1,800 coal miners in Boone County have been laid off from work—that’s a fifth of the county’s total labor force. And the crisis doesn’t show any signs of slowing. At the end of July, Alpha Natural Resources announced it expects to lay off 1,100 more workers at 11 mines in southern West Virginia.

The West Virginia Coal Festival, held every year at the end of June in the county seat of Madison, is a good place to gauge how the layoffs are affecting everyday life for Boone County families–not only the economy, but also the political landscape and discussions about the future.

If the layoffs continue, said coal miner Daniel Smith, Boone County will become a “ghost town,” and many others at the festival agreed.

“It’s going to be a ghost town. […] Everybody will leave here,” said Smith.

Smith sat with his family in a booth on the festival’s main drag, selling quilts to passersby. Daniel said if he loses his job–as he assumes he will–he’ll leave, too.

Many already are–for Colorado, Wyoming, Texas, Oklahoma, Indiana. For those miners still working, life is uncertain. In the past two years, one fifth of Boone County’s labor force has lost a coal mining job.

Credit West Virginia Center on Budget & Policy
/
West Virginia Center on Budget & Policy

Needless to say, it’s affected Boone County residents for the worse.But what “worse” looks like exactly depends on who you ask.

Will they find jobs here? And will those jobs pay?

Angela Smith, who’s married to coal miner Daniel Smith, said her husband’s company has closed six mines in the area in recent years.

“That is hundreds and hundreds of men just in Logan county that lost their jobs. That’s a lot of children who don’t have a parent who makes money anymore,” Smith said. “That’s a lot of wives out here struggling to find a way to feed their kids. Then you’re going to have increased drug usage. You’re going to have increased theft.”

Angela is worried that some of her neighbors are getting desperate and turning to crime to make ends meet.

“We’ve had thefts up and down our road and we live in a great area,” she said.

Stealing probably is an extreme case–others are simply cashing out their assets to pay the bills.

“There’s not a road that intersects Route 119 where you don’t see several vehicles for sale. There’s not a road you can travel down that you don’t see homes for sale,” said Roger Horton, a retired miner now working with a lobbying group called Citizens for Coal.

“Our miners are not going to just lay down. They are going to find work,” said Horton. “But the question is, are they going to find it here? And if they do find it here, is it going to be a job that pays nearly as much? Is it going to be a job that has the benefit package they enjoy now? I say not.”

Coal pays well. According to The Charleston Gazette’s analysis of data from Workforce West Virginia, Boone County’s annual wages averaged $50,670 in 2013, the highest in the state.

Guy Mitchell, a miner who has worked at six different mines in the past two years, says many of his friends have switched careers because of the instability and uncertainty in the coal industry right now, even though it means making half of what they used to as miners.

“I’ve had probably 10 or 15 different [friends] go into different jobs, take a big pay cut, just to have job security. State jobs for state roads or maybe even logging–just whatever really they can find,” explained Mitchell.

When Mitchell’s brother lost his job, he opened up his own motorcycle shop, and his wife went to work. It doesn’t pay as well as mining, but he’s making a living.

But even staying in the mines doesn’t necessarily guarantee the high wages it once did. Guy says companies are laying off workers as full time employees and rehiring them as contractors, for less money.

“You make about $4 or $5 less on the hour and no insurance, because the coal market’s down and they can’t afford to pay that rate. They’re trying to find different means to keep people working,” he said.

Willie Kimler’s father has so far kept his job in the mines. Even so, the younger Kimler–the college-bound president of his high school graduating class–doesn’t see a future for himself in Boone.

“I don’t plan on going into the mines because the market doesn’t look good and that would be kind of like a death wish. I plan on going to college and trying to get a degree, and that degree isn’t really going to come in handy here,” he said.

Unless the coal market picks up, Willie said, everyone will simply move away. And it’s not because those in the area don’t like life there.

“I love my community and where I grew up, and I’ll always come back, but I don’t see myself living here in 10 years.”

A Changing Political Landscape

Republican Shelley Moore Capito and Democrat Natalie Tennant are competing for the U.S. Senate seat soon to be vacated by the retiring Jay Rockefeller. Capito walks down State Street during the festival, clad  in a snappy red white and blue outfit and flanked by supporters in black shirts that read “Coal Miners for Capito.”

Credit Catherine V. Moore
/

Tennant, the current Secretary of State and a former mascot for West Virginia University’s football team, the Mountaineers, shoots off her musket into the sky.   

“This is the Coal Festival, this ain’t a damn campaign rally!” heckled retired miner Jerry Wilson, 77, of Julian.

Like many, Wilson blames Washington Democrats–especially President Obama and his administration’s Environmental Protection Agency (EPA)–for the downturn in coal production and job losses in the area.

“If Washington doesn’t change, it’s done,” he said. “That’s the way I see it. So is West Virginia. West Virginia’s coal, that’s all.”

This anger at the top level of government over coal layoffs is remaking Boone County’s political landscape.

Credit Catherine V. Moore
/

“Obama is the greatest gift to the Republican party [that] we’ve ever had. It’s even respectable to be a Republican in Boone County,” said Larry Lyon of the Boone County Republicans.

Until the last election, Boone County hadn’t voted for a Republican presidential candidate for almost 30 years. But the popular perception that Obama’s EPA is killing coal jobs is affecting the vote in big ways, said Lyon. He pointed to a table where Boone Countians were registering to vote.

 

 

“People that register over there either register Independent or Republican. Very few register Democrat now,” said Lyon.

Alive among the people of Boone County is a hope that if you could just get rid of President Obama, things would get better. But there’s evidence that’s not the case.

The recent tightening of emissions standards on coal burning power plants–which actually dates back to Clean Air Act amendments under the Bush administration–is just one of a host of factors at play.

One of the major ones is simply scarcity. After more than 100 years of mining in West Virginia, there’s less minable coal, and what’s left is harder to mine. That means it costs more to mine, and thus, costs more to buy. Buyers are increasingly looking to lower-cost coal from other regions, according to the U.S. Energy Information Administration.

A 2008 forecast by West Virginia University predicted that coal production in Central Appalachia would fall by nearly 40% by 2030, due in part to the depletion of reserves.

Several people at the Coal Festival expressed some version of this statement: if you want to burn less coal to reduce carbon emissions and take care of the planet–fine, but…  

“You introduce it gradually. It’s something that has to be 30, 40, 50 years worth of work,” said Angela Smith. “You don’t just come in and shut down an entire industry that supports three states.”

But the people of Boone County may not have that long to wait. In 1995, the U.S. Bureau of Mines predicted that the county only had 20 years worth of economically mineable coal left. That, of course, was almost exactly 20 years ago.

Planning for The Future

Of all the people at the Coal Festival, none saw a particularly bright future for Boone County, unless coal makes a comeback. It’s coal or leave, they all said. Well, except for one.

When a giant coal sludge dam burst on nearby Buffalo Creek in neighboring Logan County on February 26, 1972, Kerry Albright’s mother and brother drowned in the coal slurry, but not before throwing him to safety on the mountainside. He’s known as the Buffalo Creek “Miracle Baby.”

Now a resident of Brooklyn, New York, Albright is working on a documentary about his story. In the process, he has talked to a lot of locals about the coal issue–some pro, some anti–but, he says, most fall right in the middle.

“But they’re just kind of confused about if they don’t have this industry, what do they have? Which is a very legitimate concern, and it’s a legitimate question,” Albright explained.

Credit Catherine V. Moore
/
Buffalo Creek’s “Miracle Baby” Kerry Albright

He says people feel stuck, because they’re just not seeing any other options.

“It seems like they even feel that they are putting all their eggs in one basket. To get another basket is something that they just can’t do overnight,” he said.

Albright says that instead of putting all our eggs in one basket, he’d like to see some planning for the future.  

“Whether we like it or not, coal is eventually going to leave, whether it’s 300 years, 400 years, or tomorrow,” he said. “Because technology advances. Everything advances. And I just really want the people of Boone, and of West Virginia, to plan for that event instead of waiting for the disaster to happen.”  

Kerry has survived one coal-related disaster, and he hopes he doesn’t have to see another.

 

W.Va. Gets Funding for Workforce Development

  West Virginia is receiving $10,000 in funding to help expand workforce education and training program.

Gov. Earl Ray Tomblin said the state was selected for a grant from the National Governors Association.

Officials say 44 percent of job openings in West Virginia in the next 10 years will require more than a high school education, but less than a four-year degree.

The funding will help tailor education and training programs to meet state-specific needs and integrate education and workforce data to increase training opportunities.

Money also will be used to strengthen and build new partnerships between industry and education.

In addition to the grant, West Virginia also will receive as technical assistance from the National Governors Association’s Center for Best Practices and outside experts.

West Virginia Coal Company Expects 280 Layoffs

  A coal company has announced plans to lay off 280 workers at mines in southern West Virginia.

Coal River Mining and Coal River Processing filed a 60-day layoff notice Tuesday for five mines. Four mines would be idled, while one has already been idled.

The facilities are in Alum Creek and Julian.

Plant, administrative, warehouse and support personnel also would face layoffs.

The layoffs are expected sometime in October.

In Tuesday’s notice, Coal River managing member Jim Bunn II attributed the layoffs to adverse market conditions.

Department of Highways Weighs In On Proposed Morgantown Heavy Truck Ban

As efforts to limit heavy truck traffic in Morgantown’s downtown district continue, the WV Department of Highways is weighing in on who has jurisdiction over road regulation. 

Editor’s Note: In an earlier version of this story, we reported that, “other attempts have been made [to ban heavy truck traffic through downtown Morgantown] and failed most recently in 2006.” That information was incorrect and this story has since been updated.

A Proposal

Safe Streets Morgantown is a group pushing for an ordinance to ban the truck traffic through Morgantown’s downtown business district.

According to their proposal, trucks weighing over 20,000 pounds with 3 or more axles would be unable to drive through Morgantown, with exceptions. Those exceptions include emergency, government, solid waste, towing and delivery vehicles, as well as vehicles detoured through the city, and those vehicles who receive a permit from the city manager’s office.

Code Dispute

A similar attempt to limit truck traffic was made in 2006. Morgantown City Council at that time elected to negotiate with the Department of Highways and local industry to find a meaningful solution; however, negotiations failed to remedy the problem.

Since then Safe Streets has examined state code and the attorney and spokesperson for group Brian McAllister says the law permits cities to pass such ordinances.

“The code, as we see it, is very clear. The Legislature has said in Chapter 17-C of our code that municipalities are in fact afforded the authority to regulate traffic consistent with their safety regulatory authority as we propose. And nowhere in the code does it say that a municipality acting within the scope of that authority needs to confer with the DOH or get the DOH’s blessing in advance of taking this type of action.”

Still, City Manager Jeff Mikorski sent a letter to the state’s Secretary of Transportation, Paul Mattox, stating that, “The City has received volumes of complaints from residents, property owners, and businesses along [State Route 7] regarding noise, debris falling out of trucks, health concerns from exhaust, safety concerns, and congestion because of the heavy truck traffic.” Mikorski’s letter cited limestone trucks in particular that travel through the town between 4am through the middle of the afternoon and requested audience with officials to discuss the proposed ordinance that would limit traffic.

The city manager says the DOH responded in word and letter expressing that the code in question, “when read in context,” doesn’t allow for local management of roads within the state road system. “Therefore,” the letter reads, “without the permission of the Commissioner, any such municipal regulation would be invalid.”

Approval or Disapproval

“This is a requirement made in hundreds if not thousands of municipalities around our country,” says Safe Streets spokesperson, Brian McAllister, “and so we don’t think that it’s too much of an imposition for these trucks going around the city. So is there hope that the DOH would join us and support us in our effort to improve our community? Yes, absolutely.”

Morgantown’s city manager, Mikorski says that he thinks the DOH’s approval is unlikely since his understanding is that DOH would only approve the ordinance if the town were to takes on all of the maintenance and road management responsibilities including snow removal and repairs.

Nevertheless, the ordinance is slated to be read at Morgantown’s next city council meeting on August 19th. A public hearing would follow, then a second reading if the order is to be passed. Whether or not the council will seek approval from the Department of Highways or challenge their interpretation of code is unknown.

***Editor’s note: The WV Department of Highways didn’t return any phone calls to discuss this story.

New Teacher Housing for Troubled McDowell County

Members of the governing board for Reconnecting McDowell voted to demolish two buildings in the county seat of Welch to make way for new, affordable housing for teachers and young professionals.

The board and members of the American Federation of Teachers held a ribbon cutting ceremony in front of the old Best’s Furniture warehouse, a 25,000 square foot building that’s sat vacant for years. In the coming months, it and the smaller Katzan building located directly behind it will be torn down to make way for 28 new housing units.

State Board of Education President Gayle Manchin, who also chairs the project’s board, said the new structure will provide more than just housing. Plans include space on the first floor for workspace to encourage teacher collaboration and a coffee shop and possible deli to spur economic development in downtown Welch which she said is key.

“In order to tell the parents that live in this area, we want to educate your children with the skills that can enable them to get a job in this region, you have to have economic development,” she said. “We believe this is one step in helping to build an economically viable community again.”

Credit Ashton Marra / West Virginia Public Broadcasting
/
West Virginia Public Broadcasting
The building set to be demolished sits in the middle of downtown Welch.

The total project is estimated to cost $5.5 million with money from federal low interest loans, the state and more than $2 million from the private sector.

At least, that’s the plan. Reconnecting McDowell Project Manager Bob Brown said after the ceremony he plans to lobby state lawmakers for assistance and will begin almost immediately reaching out to businesses and national foundations for funds.

An exact date for demolition has not been set, but Brown said they expect the new building’s construction to be complete within the next year to 18 months. 

Cabell Huntington Explores Aquiring St. Mary's

Cabell Huntington Hospital is exploring an acquisition of St. Mary's Medical Center.Cabell Huntington said Tuesday in a news release that it is discussing…

Cabell Huntington Hospital is exploring an acquisition of St. Mary’s Medical Center.

Cabell Huntington said Tuesday in a news release that it is discussing a potential acquisition with Pallottine Health Services, Inc., which operates St. Mary’s.

Both hospitals are located in Huntington. St. Mary’s has 393 beds and is the largest private employer in Cabell County. Cabell Huntington has 303 beds.

Cabell Huntington and Pallottine Health Services say they believe a merger would improve the delivery of health care services.

St. Mary’s CEO Michael Sellards said in the release that the Pallotine Missionary Sisters have decided to end their sponsorship of the hospital. He attributed the decision to a changing health care climate and fewer sisters to oversee the organization’s health care ministries.

Exit mobile version