Coal company fights worker shortage with bonuses

BIRMINGHAM, Ala., May 1 (Reuters) - Alpha Natural Resources Inc (ANR.N: Quote, Profile, Research), acknowledging a labor shortage in the coal fields, Thursday gave workers 25 shares of stock, free health insurance and other incentives to stay in the mines.

Company officials announced the package to the Virginia-based company's 3,600 employees at 58 mine sites in four states, saying it will cost $13 million in the first year alone and is worth $3 an hour to the average employee.

Alpha executives, in meetings with employees, said the program aims to keep current workers and find new ones as demand for coal soars. Alpha is a large U.S. coal producer and exports steel-making coal.

"It's time we readied ourselves for an exciting future by first publicly expressing our appreciation for our miners and their families and, secondly, by introducing incentives to attract and retain the next generation of miners," Alpha President Kevin Crutchfield said.

Alpha workers received certificates granting them 25 shares of stock in the company and were told they no longer must contribute to health, dental and vision insurance premiums.

Officials also announced semi-annual bonuses for operating personnel based on continued service to Alpha and rewards for volunteer rescuers and trainers.

To help employees cope with higher commuting costs due to rising gasoline and diesel prices, Alpha unveiled a fuel assistance program.

According to the National Mining Association, the average coal miner is 50 years old, and there is a shortage of qualified miners. The industry expects to need 50,000 new miners in the next 10 years, Alpha said. (Reporting by Bruce Nichols; editing by Jim Marshall)