Asarco granted approval of settlement with labor unions to end strike

By Caroline Salls

Pittsburgh, Nov. 15 - Asarco LLC obtained approval of its settlement agreement with several striking labor unions that will end the strike and related litigation and return the workers to their previous jobs, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

According to the motion, on July 2, about 1,500 miners and other workers at five Asarco facilities in Arizona and a refinery in Amarillo, Texas, went on strike.

The strikers are members of the United Steelworkers, Local 2181 of the International Association of Machinists and Aerospace Workers, Locals 518, 570 and 602 of the International Brotherhood of Electrical Workers, Local 741 of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, Local 627 of the International Brotherhood of Boiler Makers, Iron Ship Builders, Black Smiths, Forgers and Helpers, Millwrights Local 1914, the General Teamsters, State of Arizona, Local 104, an affiliate of the International Brotherhood of Teamsters and Local 428 of the International Union of Operating Engineers.

A contract covering the workers at one of the mines expired June 30, while the employees at the smelter and other mines have been working without an agreement for more than a year.

"The strike has been very disruptive to Asarco's operations, particularly given that copper prices are at unprecedented levels," the motion said.

Settlement agreement details

The settlement agreement terminates Dec. 31, 2006.

Under the agreement:

• All striking employees will be notified of their scheduled return-to-work date.

Striking employees will be returned to their pre-strike jobs. If a returning employee's job no longer exists, the returning employee will be reinstated to a substantially equivalent position, if available;

• Asarco will make all contributions required by ERISA to the Retirement Income Plan for Hourly Rated Employees unless the Pension Benefit Guaranty Corp. begins proceedings to terminate the plan, and Asarco will pay all disability benefits, sickness and accident benefits and workers compensation benefits under the Asarco Plan of Permanent and Total Disability Benefits the Asarco health plan and the Asarco Occupational Injury Benefit Program;

• Asarco will not file or support an application for interim or permanent relief from the terms and conditions of employment of active employees;

• Asarco will not file or support an application for interim or permanent relief from the terms of the retiree benefit programs covering those retirees represented by the striking unions;

• Because Asarco has agreed not to seek or support any application for interim or permanent relief, the parties have agreed to a stay of the class action civil suit pending in the U.S. District Court for the District of Arizona and to a stay of an adversary proceeding pending in Asarco's Chapter 11 case; and

• The parties will immediately take all necessary steps to withdraw, discontinue or dismiss any civil charges, complaints, suits or proceedings pending in state or federal court or before the National Labor Relations Board that have arisen out of these negotiations and strike.

Asarco has been operating its mines on a limited basis with salaried workers and a handful of non-union employees who have been crossing the picket line and replacement workers provided on a contract basis from an outside vendor.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy Aug. 9. Its Chapter 11 case number is 05-21207.

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