USW Criticizes Decision to Confirm Grupo Mexico Plan of Reorganization as a
Blow to ASARCO Workers, Retirees and Communities
PITTSBURGH, Nov. 16 /PRNewswire-USNewswire/ -- On Friday, November 13,
the United States District Court in Brownsville, Texas issued an order in the
ASARCO LLC chapter 11 bankruptcy confirming a plan of reorganization proposed
by Asarco, Inc., an entity controlled by Mexico City-based conglomerate Grupo
Mexico.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080131/DC12982LOGO )
"The USW is certainly disappointed with the District Court's decision.
We are reviewing the 135-page decision, as well as our legal and other
options," said Robert LaVenture, Director of USW District 12 and union
chairman of bargaining with ASARCO. "It appears that the District Court
committed the same error as the Bankruptcy Court by disregarding contractual
provisions that protect employee rights and benefits in the event of a sale or
other change in control."
The United Steelworkers (USW) represents approximately 1,300 ASARCO
workers at mines and smelters in Arizona and a facility in Amarillo, Texas.
The USW supports a competing plan of reorganization submitted by ASARCO and
financed by Sterlite USA, an affiliate of an India-based company. The USW and
Sterlite have already bargained a new labor agreement in connection with
Sterlite's reorganization plan.
Grupo Mexico and the USW engaged in bargaining earlier this year in an
effort to reach a new agreement, but the parties have not met since July 24,
when the USW submitted a comprehensive proposal.
"Our July 24th proposal provides for a long-term agreement that
protects American jobs and keeps profits earned by American workers in the
company," said LaVenture. "Grupo Mexico never offered a counter to our July 24
proposal and instead, mainly chose to communicate its bargaining position
through court filings and the statements of its bankruptcy lawyers."
Grupo Mexico acquired ASARCO in 1999 and controlled the company through
its bankruptcy filing in August 2005. Throughout most of the case, however,
ASARCO has been led by independent directors.
"ASARCO has thrived outside of Grupo Mexico's control, and all
stakeholders - workers and retirees, small businesses that supply goods and
services to the mines and smelters, local governments that depend on ASARCO
tax revenues and federal and state governments that expect ASARCO to be a good
steward of its environmental obligations - should be concerned about the
possibility of Grupo Mexico regaining control of this business," said
LaVenture.
Speaking directly to ASARCO's workers, LaVenture said, "The
Steelworkers and other union workers who work at ASARCO deserve all of the
credit for the company's success in the past four years. Should Grupo Mexico
follow through and regain control of ASARCO, we will need to stand together in
solidarity once again to preserve the benefits we have negotiated."
The USW represents approximately 850,000 workers in the United States
and Canada and is the largest union representing workers in the copper
industry.
For more information, contact: Manuel Armenta (USW) - (505) 878-9756
SOURCE United Steelworkers (USW)
Manuel Armenta, USW, +1-505-878-9756
