Asarco parent loses appeal of new collective bargaining agreement approval

By Caroline Salls

Pittsburgh, Oct. 15 - Asarco LLC parent Asarco Inc.'s appeal of a 2007 ruling that approved a new collective bargaining agreement with the company's unions was rejected Tuesday by the U.S. District Court for the Southern District of Texas.

According to Wednesday's appeal ruling, Asarco Inc. said the new CBA contained illegal provisions, constituted a "sub rosa plan of reorganization," harmed the parent company and was not a proper exercise of Asarco LLC's business judgment.

"After hearing extensive testimony of various financial experts, company officers and board members, the bankruptcy court was persuaded that Asarco LLC's business justifications for entering into the new CBA were sound," judge Hayden Head said in his appeal ruling.

"The court finds no reason to disturb that finding."

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005 in the U.S. Bankruptcy Court for the Southern District of Texas. Its Chapter 11 case number is 05-21207.

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