News From USW: Steelworkers Challenge ASARCO Tactics as Unreasonable, Illegal; Union Seeks an End to Dispute, Posturing by Company at Table.

TUCSON, Ariz. -- The United Steelworkers (USW) today blasted ASARCO for continuing to insist on unfair and unnecessary concessions from its hourly employees, even after provoking about 1,500 workers into unfair labor practice strikes by ignoring and flouting federal labor laws.

USW District 12 Director Terry Bonds blamed the lack of progress on ASARCO negotiators and said that the company has established a pattern of self-destructive corporate decision-making over the course of negotiations.

"ASARCO management keeps saying it wants a contract, but then they refuse to bargain in good faith with the unions that represent their employees," Bonds said. "They insist that the company needs to save money to keep operating, but then they refuse to provide the information we need to address operational efficiencies."

The company's demands for concessions were further belied by statements made by representatives of its parent company, Grupo Mexico, during a May 2005 presentation to analysts. Grupo projected that ASARCO's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) would increase from $59 million in 2004 to $185 million for 2005, and also forecast that the stripping program will reduce Asarco's long-term cash break-even point to below 85 cents per pound of copper.

"With the copper market still strong, truly there is no justification for ASARCO management's insistence on concessions from our members and their families," Bonds said, "except for corporate greed."

Despite the company's illegal actions, Bonds said that the unions remain committed to reaching fair contracts at Ray Mines and the Copper Group and are willing to address issues of productivity to minimize any increase in labor costs, but the Company has declined the Union's cost-saving overtures.

"We have always made ourselves available to meet whenever it suits ASARCO's negotiators," Bonds said, "but it takes a commitment from both parties for a successful negotiation."

USW members at six copper mining and processing facilities in Arizona and Texas voted overwhelmingly to support unfair labor practice strikes over the Fourth of July holiday weekend.

"We hoped that negotiators for the company would adopt a tone in negotiations that matched their recent rhetoric about how much they wanted a contract settlement," said Bonds, "but it's clear now from the company's continued illegal behavior that ASARCO is determined to stick with its unreasonable demands."

Bonds said that USW members have faced hardships while fighting for justice and dignity in their workplaces before and won. He pointed-out contract settlements that ended labor disputes at Oregon Steel's Rocky Mountain Steel Mill, Kennecott Utah Copper and RTI International Metals' RMI Titanium division as recent examples.

"We are united in purpose and dedicated to the fight for a fair contract for all of ASARCO's employees," Bonds said. "Our solidarity will overcome their greed, just like it has many times before."