News From USWA: Solidarity Council Condemns ASARCO Cuts on Retiree Health Insurance; Supports Legal Action, Announces Campaign for Justice.

Business Editors/Labor Writers

TUCSON, Ariz.--(BUSINESS WIRE)--Sept. 7, 2003

The United Steelworkers of America (USWA) announced today that the Solidarity Council for Justice, a coalition of trade unions and supporters, will rally on the steps of the Tucson Federal Court House today to express outrage at ASARCO's recent decision to unilaterally modify health insurance for hundreds of ASARCO retirees, contrary to long-standing labor agreements, decades of bargaining history between the company and its unions, and employee protection laws according to the USWA.

The rally will coincide with the filing of a federal class-action legal complaint at the U.S. District Court in Phoenix, Ariz. by the USWA, the International Brotherhood of Electrical Workers, the International Chemical Workers Union Council of the United Food & Commercial Workers (who represent ASARCO retirees in Corpus Christi, Tex.), and individual retirees.

The complaint, filed by attorney Mike Keenan who will address the rally, will request "That the Court declare that the company violated its obligations under the (health insurance) Plan and labor agreements ... (and) That the Court order the Company to perform its contractual and statutory obligations under the Plan and labor agreements ..." It will also allege violations of employee protection laws and request appropriate relief.

The rally will feature elected officials -- including a representative from the office of Arizona Gov. Janet Napolitano, a representative from the office of U.S. Representative Raul Grijalva, Arizona State Sen. Peter D Rios, Pima County Supervisor Richard Elias, and Tucson City Council members Steve Leal and Jose Ibarra. Also, Arizona State AFL-CIO Sec.-Treas. Michael McGrath and USWA SOAR (Steelworkers Organization of Active Retirees) Coordinator Celestino Torres will speak.

Most importantly, ASARCO retirees and family members will tell their stories from the podium and from the crowd: "It's just one more screw in my back," said Dick Cvitkovich, 60 of Tucson. Cvitkovich, a widower, explained that after serving four years in the U.S. Air Force, including two years of active combat in Southeast Asia, he returned to the Tucson area, where he worked for ASARCO and predecessor companies for nearly 30 years.

"I gave them my body and literally ruined it," the disabled heavy equipment operator, rank-and-file activist and elected union official with the International Union of Operating Engineers said. "And now, if the company retiree health changes go through, my entire pension will be eaten up by the additional insurance costs. They're cheating me out of my retirement."

Cvitkovich's comments were echoed by Charles Yarter, a 61-year old USWA retiree from the ASARCO Mission complex, near Tucson. "I planned my retirement around the benefits that were guaranteed me by ASARCO in exchange for 34 years of service. Now, this health insurance change will take away half my pension. I can't live on what's left. And who's going to hire a 61-year-old man, especially in this economy? I'll be lucky to find a minimum-wage job."

Cvitkovich, Yarter and hundreds of other retirees are receiving strong support from a new crop of ASARCO workers. "These retirees have made it possible so we could have things better, and lives would be a little easier," said Robert Manriquez, USWA Local 5252 president at ASARCO's Ray mining and smelting complex. "Besides, younger workers know that if we stand by and let the company run over retirees -- some who are our parents and relatives -- they'll come right after us next. It's that simple. It's basic. We're all in this together."

Additionally, Solidarity Council leaders will announce the initiation of a coordinated international strategic Campaign for Justice to demand that ASARCO - and its parent company, Grupo Mexico -- rescind the decision.

"I've just returned from Mexico," said USWA District 12 sub-director Manny Armenta, who represents USWA members and retirees from the USWA Tucson office. "There, I spoke with union leaders from ASARCO/Grupo unions in Peru and Mexico. We all agreed we have problems with these companies.

"And we also agreed," Armenta continued, "that we can increase our strength by working together, by defending the interests of our members and communities wherever ASARCO or Grupo may be operating, whether it's in Peru, Mexico, the U.S. or wherever. This fight may be starting here in Arizona. But it won't stop here."

The Solidarity Council for Justice was founded by union locals from eight unions that represent thousands of workers throughout the ASARCO/Grupo financial/industrial empire.

They include: the USWA; the Operating Engineers; the IBEW; the International Brotherhood of Teamsters; the United Brotherhood of Carpenters and Joiners of America; the International Association of Plumbers, Pipefitters, Service Technicians, Sprinklermakers and Steamfitters Union; the International Brotherhood of Boilermakers, Shipbuilders and Blacksmiths; and the International Assn. of Machinists and Aerospace Workers. All are affiliates of the AFL-CIO.

ASARCO Inc. is a wholly-owned subsidiary of Grupo Mexico, SA -- a complex of holding companies and mining interests dominated by the billionaire Larrea family of Mexico City, Mexico. Also, the Phelps Dodge Corp., based in Phoenix, Ariz., and the Pritzker family of Chicago, Ill. -- billionaire owners of the Hyatt House Hotel chain and other financial interests -- have significant investments in the network of Grupo Mexico properties and holding companies.