Mesothelioma and Asbestos News

 U.S. Asarco labor talks move forward slowly -union
Thu Oct 5, 2006 5:16 PM ET

MEXICO CITY, Oct 5 (Reuters) - Labor contract talks between bankrupt U.S. miner Asarco and its workers at a mine and smelter in Arizona have moved forward but the central issue of wage increases has not yet been broached, the union said on Thursday.

United Steelworkers representative Manny Armenta said the two sides had advanced on noneconomic issues such as working conditions, but no new talks were scheduled for the next week.

"We haven't gotten into the economic part of it yet. They haven't seen our proposal and we haven't seen theirs," he said. "With copper at over $3 a pound I hope we can reach an agreement."

In 2002, Asarco struggled to stay afloat with copper prices in the region of 60 cents per pound. On Thursday, COMEX December copper <HGZ6> gained 9.45 cents to $3.30 a lb.

Facing monumental environmental cleanup costs and asbestos-related health claims, Asarco filed for Chapter 11 bankruptcy protection last year in the midst of a crippling four-month strike.

The workers lifted the strike in November after gaining a veto option if the company was sold.

But a pay increase was not part of the deal and the union wants to change that this year.

"The bankruptcy was not caused because of the labor agreement, the bankruptcy was caused by the environmental lawsuits they have and the asbestos lawsuits," Armenta said.

"I think if our people had worked for free they would still have filed for bankruptcy," he said.

Asarco was due to present its Chapter 11 reorganization plan by Friday, but this week a Texas court awarded the firm a three-month extension. It must now deliver the plan by Jan. 5, 2007.

Asarco, incorporated in 1899 as the American Smelting and Refining Company, is owned by Mexican mining giant Grupo Mexico <GMEXICOB.MX>. Grupo Mexico, which bought Asarco in 1999, has deconsolidated from its American subsidiary and no longer includes the company in its financial reporting.