Feds to spend $3.72 million to retrain many of Kentucky’s Blackjewel coal miners

The U.S. Department of Labor announced Friday that it will put $3.72 million toward retraining and finding jobs for coal miners left unemployed after the bankruptcy of Blackjewel, LLC.

The money will flow through the department’s National Dislocated Worker Grant and the Eastern Kentucky Concentrated Employment Program, which funds training and job programs in 23 Eastern Kentucky counties.

Sen. Mitch McConnell, who said the funding came at his request, called Blackjewel’s actions during the bankruptcy “shameful,” and said he will continue to work with the department to support the out-of-work miners and their families.

While bankruptcies and layoffs are not uncommon in the coal industry, Blackjewel’s was especially sudden and chaotic, and made headlines when the company failed to pay its employees for three weeks of work they had already completed.

The company suddenly left hundreds of miners in Kentucky, Virginia and other states without jobs after it filed for Chapter 11 bankruptcy reorganization in early July. Other coal companies operating in Eastern Kentucky have also filed for Chapter 11, but have continued to pay their workers and operate their mines.

Miners and their families have since occupied a set of railroad tracks in Harlan County that lead toward a Blackjewel mine. The miners have said they will continue to block any movement of coal from the mine until they are paid.

“From the beginning I’ve been in constant communication with the U.S. Department of Labor, urging them to do everything possible to help dislocated mine workers in Harlan,” McConnell said. “I’m grateful to Acting Secretary Pat Pizzella for answering my call and awarding National Dislocated Worker grant funding, which will provide assistance for Kentucky to help miners and their families get back on their feet.”

Jeff Whitehead, executive director of EKCEP, said 500 out-of-work coal miners have signed up for retraining programs through EKCEP since July — the vast majority are former Blackjewel workers. Many of those have enrolled in lineman, truck driving and health care retraining programs, he said.

“We are very thankful to Senator McConnell for his help to make this federal grant possible, especially at a time of such uncertainty for many Harlan County families,” Whitehead said.

The program began retraining coal miners in 2012, during a major downturn in Kentucky’s coal economy. Between 2011 and 2015, the number of coal jobs in Eastern Kentucky dropped by more than half, from 13,600 to 5,900.

While the health care route typically takes more time, it has a better chance of allowing the worker to stay in his or her community, Whitehead said.

Entry-level lineman and truck-driving jobs often require the employee to work away from home, often outside Kentucky, during the weekdays, he said.

EKCEP’s placement rate for retrained coal miners is about 80 percent. On average, EKCEP pays about $9,000 to re-train each worker, he said.

“It’s a great investment,” Whitehead said. “The placement is there.”