Friday, March 6, 2009

Coal Creates Jobs and A Strong Economy In Appalachia?

Mountaintop removal is a mining technique designed, from the very start, to take the labor force out of the mining operation. According to the bureau of labor statistics, in the early 1950’s there were between 125,000 and 145,000 miners employed in West Virginia; in 2004 there were just over 16,000. During that time, coal production increased. In addition, the coal-bearing counties of Appalachia are some of the poorest in the nation, despite the fact that some of the greatest wealth is being extracted from them.

The US Department of Labor’s forecast report on the mining industry states that while the U.S. and world economies will continue to demand larger quantities of the raw materials produced by mining, the increased output will be able to be met by new technologies and new extraction techniques that increase productivity and require FEWER WORKERS. Productivity in coal mining has increased with advances in longwall and surface mining (mountain top removal) requiring FEWER WORKERS. Most mining machines and control rooms are now automatic or computer-controlled, requiring FEWER, IF ANY, HUMAN OPERATORS. The report estimates that 80% of mining establishments in rural areas employ fewer than 20 workers.

A profile report on the coal industry completed by Research and Markets holds that the mining industry has become highly automated with average annual revenue per employee at $300,000.

The fourth largest coal company in the US, Massey Energy, disclosed in their 2008 Full Year Operating Report, coal revenues of 2.6 billion with a net income of 56.2 million. Forbes Magazine reported that CEO of Massey Energy, Don Blankenship received $9, 929,125.00 in total compensation for 2007 and Baxter Phillips, President of Massey Energy, received $2,419,213.

To put this in perspective, the median income in West Virginia is $37,060 with the US Census Bureau reporting that in 2008, Appalachia is now home to 13.3 million people living in poverty.
West Virginia and the rest of the Appalachia region deserve better. Better from their government and better from the coal companies.

US Department of Labor: Bureau of Labor Statistics
Massey Energy Annual Report
US Census Bureau
Forbes Magazine

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