United Steelworkers Revises Earlier Statements Concerning Drummond Company's Colombia, South America Operations, Drummond Company States

November 6, 2009

BIRMINGHAM, Ala., Nov. 6 /PRNewswire/ -- The following statement is being issued by the Drummond Company:

When faced with the threat of a lawsuit from Drummond Company for issuing false and misleading statements, the United Steelworkers (USW) has released a revised statement and has sent a letter to United States Secretary of State Hillary Clinton revising the false allegations the Union made in a September 17, 2009 letter to Secretary Clinton and in a September 18, 2009 press release.

The false statements in the September 18 USW press release attempted to publicize a September 17, 2009 letter from USW International President Leo W. Gerard to Secretary Clinton.

In that letter, Gerard falsely accused Drummond Company of attempting to fire all of its Colombia, South America union workforce in retaliation for a work stoppage at its mine operations there. Specifically, the September 17 USW letter from Gerard alleged that Drummond had petitioned the Colombian Labor Ministry for permission to fire all its union workers. Those statements and allegations are patently false.

Drummond employs approximately 7,000 workers in its South America operations.

Bruce C. Webster, Drummond general counsel, wrote Gerard on October 29, 2009 and demanded that the USW retract the false statements within five days.

The union replied and Gerard sent a revised letter October 30, 2009 to Secretary Clinton and the USW issued a revised press release.

In a November 4, 2009 letter to Secretary Clinton commenting on the Union's tactics, Drummond Chief Executive Officer Garry N. Drummond said:

"When faced with a lawsuit by Drummond Company for slander, libel, and interference with contract, the United Steelworkers Union revised their statements to the Honorable Hillary Clinton, Secretary of State and released their revised statement to the public.

"This is not the first time that the United Steelworkers has made slanderous and libelous statements concerning Drummond. Drummond feels that this was a deliberate attempt to mislead our workforce in Colombia to serve their ulterior motives.

"Drummond respects and appreciates its capable, dedicated and hard-working labor force in Colombia. Drummond is mining coal in Colombia to provide a better living and a more productive life for everyone involved in this project.

"It is sad to Drummond that the leadership of the United Steelworkers Union resorts to these malicious tactics. Drummond is reviewing the past several years of similar attacks against Drummond Company as well as other extracurricular activities in Colombia by the United Steelworkers Union and their officers. Drummond is investigating whether these actions reveal a pattern of illegal activities against the Company. Drummond will continue to use all legal means to assure that neither its work force nor the public continues to be misinformed and that the goodwill and name of the Company is preserved.

Drummond encourages the truth in honest discovery on the above issue. Does the United Steelworkers Union encourage the same?"

SOURCE Drummond Company