Coal producer Massey plans 6 pct average pay cut amid slumping coal prices

Massey plans pay cuts amid low coal demand

CHARLESTON, W.Va. — Coal producer Massey Energy’s shares are up more than 24 percent after it announced plans to slash wages and benefits for all employees about 6 percent in the face of declining demand and prices.

Chief Executive Don Blankenship told analysts Wednesday the cuts will occur May 1 and should reduce wages and benefits between $50 million and $60 million.

Massey has previously announced the idling of underground mines and eliminating Saturday shifts. Blankenship estimates those measures have reduced production about 4.2 million tons.

Massey operates coal mines in West Virginia, Virginia and Kentucky.

Its shares are up $3.10, or 24.7 percent, to $15.96 in afternoon trading.