The union group, United Mine Workers of America, comprising of roughly 1,100 members was ordered to pay the sum by a federal oversight board.

The sum is to compensate the Alabama coal company for costs incurred including increased security, damage repair and revenue lost from unmined coal, abc News reports.

Cecil E. Roberts, president of the union, commented: “Is it now the policy of the federal government that unions be required to pay a company’s losses as a consequence of their members exercising their rights as working people? This is outrageous and effectively negates workers’ right to strike. It cannot stand.”

An agreement has been signed between the union and the company providing that the union pay damages for “strike misconduct”.

Spokeswoman Kayla Blado said: “If there is not agreement with the region’s ultimate conclusion, the region will commence a proceeding before an administrative law judge where the parties can present arguments and evidence about what each considers to be appropriate damages.”