News From USW: ASARCO Contract Set for Ratification Vote.

ALBUQUERQUE, N.M. -- News From USW: The United Steelworkers (USW) today announced that ratification votes on a tentative 42-month agreement with ASARCO covering some 1,600 hourly workers will be held by the local unions Feb. 5-9, at locations where union members are employed, according to USW District 12 Director Terry Bonds, who also chairs the USW's Nonferrous Industry Conference.

The agreement includes a $3,000 ratification bonus; wage increases of $1.00 per hour retroactive to Jan. 1, 2007; $1.00 increases effective Sept. 30, 2008 and 2009; quarterly bonuses tied to the price of copper and a 20 percent increase in the pension formula.

Other highlights include no increase in active health care or prescription drug contributions; a new SUB Plan and insurance continuation for employees who are laid off; improvements in other benefit plans; and restoration of most of the health care benefits for previous retirees whose benefits were cut unilaterally by ASARCO in August 2003, and a sizeable reduction in monthly contributions.

The proposed agreement has been unanimously recommended for approval by the entire bargaining committee which, in addition to the USW, includes representatives from the IBEW, IAM, Boilermakers, Teamsters, Operating Engineers, Millwrights and Pipefitters.

The results will be totaled and each member's vote will count equally. The majority of the total votes cast will determine the results. Following ratification, the agreement will be subject to approval of the bankruptcy court.

"The proposed agreement was unanimously recommended for approval by the bargaining committee," Bonds said. "We've negotiated landmark security protections never before achieved in the U.S. mining industry. It's a real milestone for workers in the copper industry."

ASARCO employees at five locations in Arizona and Texas are covered under this agreement. Contracts covering approximately 800 hourly employees originally expired on July 1, 2004 between ASARCO and unions at the company's facilities in Amarillo, Texas; Hayden, Ariz.; Sahuarita, Ariz., (Mission Mine) and Marana, Ariz., (Silver Bell Mine). The labor agreement between ASARCO and unions covering approximately 800 hourly employees at the company's Ray Copper Mine originally expired on July 1, 2005.

Ratification votes are scheduled as follows:

Feb. 5              Amarillo Copper Refinery           Amarillo, Texas

Feb. 7              Mission and Silver Bell Mines      Tucson, Ariz.

Feb. 8              Hayden Smelter                     Hayden, Ariz.

Feb. 9              Ray Mines                          Kearney, Ariz.

Following the vote on Feb. 9, all ballots from all of the locations will be mixed and counted.

Link to contract summary: www.usw.org/usw/program/adminlinks/docs//AsarcoSummaryFinal.pdf