Exhibit 99.6
Human Resources Management
John Poma
Vice President—Human Resources September 27, 2005
Membership
To us, an employee is someone who comes to work, does a job, and collects a paycheck. A member, on the other hand, is something much more.
Members give their absolute best each day they work to ensure the success of the company, and they continually try to improve how the job is done.
Massey Census
Members | | Workforce Members Workforce |
Union/Non-Union | | 1/1/05 Percentage 8/31/2005 Percentage |
Non-Union | | hourly 3564 70.7% 4013 72% |
Non-Union | | salary 1315 26.0% 1388 25% |
Total | | 5045 100% 5571 100% |
West | | Virginia 3598 71.3% 4183 75% |
Kentucky | | 1250 24.8% 1183 21.3% |
Virginia | | 181 3.6% 188 3.4% |
Tennessee | | 16 0.3% 17 0.3% |
Total | | 5045 100% 5571 100% |
Today’s Turnover
If managing employee retention in the past was akin to tending a dam that keeps a reservoir in place, today it is more like managing a river. The object is not just to prevent water from flowing out but to control its direction and speed.
Harvard Business Review
Voluntary Turnover
New hire attrition is driving Massey’s voluntary turnover experience Turnover has increased in 2005 because of our expansion efforts 2005 voluntary turnover is similar to our 2001 experience
Voluntary Quits – By Years of Service
2005 YTD Turnover
Annualized
Service
Where are they going?
January – August 2005
60% 50% 40% 30% 20% 10% 0%
55%
38%
7%
Competitor Left Coal Industry Unknown
Overview – new hire trends
There has not been a major shift in the retention trend of new hires since 2003
It appears that retention is a legacy issue that has been inflamed by the rapid growth and hiring of the past two years
Retention trend(1)
Member growth
% of hires remaining
40% 50% 60% 70% 80% 90% 100%
0 30 60 90 120 150 180 270 360 450 540 630 Days after hire
Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005
# of new hires
0 200 400 600 800
New members Total members
4000 4400 4800 5200 5600 # of total members
Q1 2003 Q3 2003 Q1 2004 Q3 2004 Q1 2005
1. Excludes seasonal members.
Source: Lawson database, Massey Annual Reports
External Pressures – recent trends
The regional labor market is exhibiting demand pressure as unemployment has fallen appreciably over the past 3 years
Regional workforce trend(1)(2)(3)
Total workforce(‘000)
350
300
250
200
150
100
50
0
Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05
WV SE WV SW KY E Total
Regional rate of unemployment (1)(2)(3)
10.0%
9.0%
8.0% rate Unemployment
7.0% 6.0% 5.0% 4.0%
Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05
WV SE WV SW KY E Total
1. Counties included in WV SE are Fayette, Greenbrier, McDowell, Mercer, Monroe, Nicholas, Pocahontas, Raleigh, Summers, Webster, and Wyoming 2. Counties included in WV SW are Boone, Cabell, Lincoln, Logan, Mingo, Putnam and Wayne.
3. Counties included in KY E are Floyd, Pike, Martin, Johnson, and Magoffin.
Source: West Virginia Bureau of Employment, Work Force Kentucky state statistics
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External Pressures – occupation analysis
10 year regional forward employment forecasts indicate continued erosion in the mining workforce Healthcare and services are projected to absorb a larger share of labor
2002 – 2012 regional occupation growth(1)(2)(3)
Roof Bolters
Mine Cutting Machine Operators
Loading Operators, Underground
Continuous Mining Operators Extraction Helpers Excavating Operators All occupations
-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0%
KY E WV SW WV SE
1. Counties included in WV SE are Fayette, Greenbrier, McDowell, Mercer, Monroe, Nicholas, Pocahontas, Raleigh, Summers, Webster, and Wyoming 2. Counties included in WV SW are Boone, Cabell, Lincoln, Logan, Mingo, Putnam and Wayne.
3. Counties included in KY E are Floyd, Pike, Martin, Johnson, and Magoffin.
Source: West Virginia Bureau of Employment, Work Force Kentucky state statistics
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External Pressures – population trends
Red flags appear in labor supply fundamentals West Virginia population trends indicate a declining number of males in the 25 to 55 age group, a core segment for Massey hiring Additionally, the regional population is increasingly college bound and less inclined towards manual labor
West Virginia core workforce trend(1)
Male population aged 25-55 years
0 50 100 150 200 250 300 350 400
1990A 2000A 2010E 2020E 2030E
Regional educational attainment(2)
% of population with Bachelors degree
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
7.4%
9.4%
1990 2000
1. Total West Virginia state actual and projected male population between the ages of 25 and 55.
2. Counties included in WV are Fayette, Greenbrier, McDowell, Mercer, Monroe, Nicholas, Pocahontas, Raleigh, Summers, Webster, Wyoming, Boone, Cabell, Lincoln, Logan, Mingo, Putnam and Wayne, counties included in Kentucky are Floyd, Pike, Martin, Johnson, and Magoffin.
Source: U.S. Census Bureau; 1990 census, 2000 census, April 2005 population projections
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External Pressures – aging workforce
The average age of a coal miner is around 52. As a result, the industry will replace 5,000 to 7,000 retiring miners in the next 10 years.
Source: Charleston Gazette September 10, 2005
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Everyone Needs Miners
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Rivers Edge Mining, Inc.
Rivers Edge Mining, Inc., a subsidiary of Feabody Holding
Company, Inc., is accepting resumes for the following positions: Underground Electricians, Temporary LJG Electricians, and Temporary UG miners at a LJMWA represented mine in southern West Virginia. Ideal candidates should possess the following qualifications:
Electrician Qualifications (Permanent and Temporary);
• WV Underground Miner’s Certification
• Current WV State & Federal Underground Electrical
Certification (low, med, high voltage)
• 3 to 5 years of electrical experience in underground
coal mining
• Ability to pass electrical, mechanical, and hydraulic
test
Temporary UG Miners:
• WV Underground Miner’s Certification
• Ability to operate roof bolter or continuous miner
Competitive salary and benefit package. Resumes will be accepted through April 20, 2005. Reply in
confidence to;
Rivers Edge Mining, Inc. Attn: Human Resources (U-21)
P.O. Box 1233 Charleston, WV 25324
No Phone Calls or Walk-Ins Accepted
An Equal Opportunity/Affirmative Action Employer
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UNDERGROUND ELECTRICIAN & EQUIPMENT OPERATOR NEEDED
Dakota Mine, located in Boone County, has immediate vacancies for ELECTRICIANS and EQUIPMENT OPERATORS, All candidates must be experienced and possess valid certifications. Work location approximately 1 hour from Beckley or Charleston,
Company offers competitive wages; group medical, prescription, dental, vision, life insurance benefits; paid two-week vacation and holidays, and a matching 401(k) plan.
Only qualified individuals should respond with a detailed resume to;
Human Resources
P.O.Box 69 Bob White, WV 25028
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PineRidge
Electrician
Pine RidgG Coal Company, a subsidiary of the nation’s largest coal producer, Is accepting resumes for an Electrician position for a southern West Virginia operation.
Ideal candidates should possess the following qualifications;
* WV Underground Miner’s Certification ,
Current WV State & Federal Underground
Electrical Certification (low, med, high voltage)
* 3 to 5 years of electrical experience in
underground coal mining
Ability to pass electrical, mechanical and
hydraulic test
Competitive salary and benefit package. Resumes will be accepted through April 30, 2005.
Pine Ridge Coal Company Attn: Human Resources {U-22)
P.O. Box 1233 Charleston, WV 25324
No Phone Calls or Walk-Ins Please An Equal Opportunity/Affirmative Action Employer
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The Hobet 21 Mining Complex located in Boone County, WV, a subsidiary of St. Louis-based Arch Coal, has an immediate opening for a Production Supervisor at the Hobet 21 Surface Mine. The position provides a complete benefits package consisting of health and life insurance, 401-K savings plan, pension plan, paid vacation and holidays, educational assistance, etc.
OVERALL JOB PURPOSE: Provide direction and supervision to hourly employees responsible for the safe and efficient operation of surface mining equipment used in the extraction of coal. Must insure all employees understand and comply with the company’s safety policies; must be able to understand the mine plan and communicate it to subordinates; must operate within the manpower and cost criteria provided in the operating budget; must be able to perform pre-shift examination of the mine in compliance with MSHA regulations.
REQUIRED OR PREFERRED QUALIFICATIONS:
High School Diploma or GED required; engineering degree a plus
West Virginia Surface Mine Foreman’s Certification required
3-5 years surface mine supervisory experience required
Knowledge of DEP regulations a plus
Understanding of planning function and necessity of detail work required
Good written and verbal communication skills required
EMT Certification a plus
Ability and willingness to work an alternative schedule required
Interested persons meeting the stated qualifications should respond by submitting a written resume only (no phone calls or in-person visits) to;
SURFACE MINE PRODUCTION SUPERVISOR
HR Department Hobet Mining, Inc,
PO Box 305 Madison, WV 25130
Hobet Mining is an Equal Opportunity Employe
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Underground Equipment Operator
Eastern Associated Coal Corp., a subsidiary of the
nation’s largest coal producer, is accepting resumes for Roof Bolters or Miner Operators with Shuttle Sir experience for a southern West Virginia operation.
ideal candidates should possess the following qualifications;
* WV Underground Miner’s Certification;
- Experience operating Miner or Roof Bolter along with Shuttle car experience,
Competitive salary and benefit package. Resumes will be accepted through April 20, 2005.
Eastern Associated Coal Corp. Attn: Human Resources (U-23)
P.O, Box 1233 Charleston, WV 25324
No Phone Calls or Wafk-lns Please An Equal Opportunity/Affirmative Action Employer
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Kanawha Eagle Coal is seeking qualified individuals for underground operations located in Boone and Kanawha County. Kanawha Eagle Coal has a large multiple seam coal reserve (in excess of 180 Million Tons) with a state of the art preparation plant, rail transportation, and river loading facilities. Kanawha Eagle offers the following benefits:
Excellent Pay.
o $ 21.00 per Hour for Underground Equipment Operators.
o $ 23.00 per Hour for Certified Underground Electricians.
Safety Incentive Plan.
Production Bonus.
One of the best medical Insurance plans in the
industry.
Vision Plan.
Dental Insurance.
Disability Insurance
Life Insurance.
Accidental Death Insurance.
. 401K Plan.
Profit Sharing/Retirement.
Paid Holidays.
Paid Vacation utilized to observe three
vacation periods (Summer, Thanksgiving and
Christmas).
Personal Days.
Work Clothing Supplement.
Christmas Bonus.
Kanawha Eagle offers an excellent work environment and Is only seeking candidates for employment because of growth. If you are interested in employment with a fairand friendly company, please submit your resume . to the following address:
Kanawha Eagle Coal Company, LLC P. O. Box 189, Comfort, West Virginia 25049
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We’re attacking the enemy in all directions
At one point in WWII, General Creighton Abrams and his command were totally surrounded. The enemy was north, east, south and west. His reaction to this news: “Gentlemen, for the first time in the history of this campaign, we are now in a position to attack the enemy in any direction.”
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Wages and Benefits
Wage increases
Benefit plan enhancements Retention bonus
Supplemental Benefit Programs, such as auto & home insurance WV Wellness Center
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Doing the Right Thing…
with Healthcare!
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Communications
Surveys
Mine site communications Direct member communications “We Live Here Too” commercials
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Training and Orientation
Mentor Program
Extensive training & orientation programs 30/60/90 day review focus
Supervisor evaluations Member evaluations
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2005 Turnover Improvement
Superintendents Foremen Electricians Miner Operators Roof Bolters Shuttle Car Operators
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Key Issues Summary
Retention is not a new phenomenon, but rather an existing issue made larger by Massey’s expansion efforts We’re optimistic about our future growth, and we’re attacking turnover from all directions We believe we’re positioned to win because we have a better story to tell
Safety Security Community Benefits
Our retention efforts are working, and we’ve seen improvement in 2005 with many key positions
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Our Members are our Future
At Massey Energy, the only thing more important than our natural resources are our human resources.
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Doing the Right Thing. with Energy
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