“This agreement is a tremendous breakthrough for workers in the mining industry,” said Terry Bonds, USW District 12 Director and the union’s chief negotiator with ASARCO.
In addition to substantial economic gains, the Steelworkers achieved breakthrough security protections never before achieved in the U.S. mining industry.
The tentative agreement is subject to ratification by union members and approval of the bankruptcy court. The unions expect to hold ratification meetings in the next two to three weeks, following the preparation and distribution of a detailed summary of the tentative agreement.
Bonds praised the union membership, many of whom worked for over a year without a contract and struck ASARCO for 19 weeks in 2005. With copper prices at record highs, union members agreed to a one-year contract with a wage-freeze to gain assurances that if one or more of the company’s operations were sold, the buyers would retain the employees and bargain new labor agreements.
“Our members have shown enormous determination and courage over the last 2.5 years. Many 'so-called' experts said that unions would never again win a strike against a copper company after the events of the 1983 Phelps Dodge strike. But our members proved that working people don’t have to simply accept inequality or economic injustice. They can fight back and win,” Bonds said. “I could not be more proud of our members and local union leaders. This was a long struggle and its outcome was never guaranteed.
“In 2004, we had seven different contracts with varying contract language, two different expiration dates, and differing pension plans. When we began bargaining in May of that year at four of the locations, the company demanded massive wage and benefit concessions. We refused to accept their demands and our members were forced to work for a year without a contract. When bargaining began at the Ray Mines in May 2005, the company continued to demand concessions. We refused. When the Ray Mines contract expired in July of 2005 our members voted to strike at all locations. To settle the 4.5-month strike, we agreed to a one-year extension and immediately began preparing for the fight ahead. The recently concluded tentative agreement is the fruit of this extraordinary struggle."
Bonds also had praise for Joe Lapinsky, ASARCO’s CEO.
“Our negotiations with ASARCO were frustrated for almost two years by Grupo Mexico," he said. "That began to change when Grupo Mexico was moved aside by an independent board of directors and Joe Lapinsky was named to head the company. He has chosen a path of cooperation with our union, rather than confrontation, and we look forward to working with him to address the many challenges still facing the company.”
Despite the company being in bankruptcy, the tentative agreement includes
Approximately 1,600 employees are covered by the agreement at five locations in Arizona and Texas. Contracts covering approximately 800 hourly employees originally expired on July 1, 2004 between ASARCO and unions at the company’s facilities in Amarillo, Texas; Hayden, Ariz.; Sahuarita, Ariz., (Mission mine) and Marana, Ariz., (Silver Bell mine). The labor agreement between ASARCO and unions covering approximately 800 hourly employees at the company’s Ray Copper mine originally expired on July 1, 2005.
The unions representing workers at ASARCO included the United Steelworkers, International Brotherhood of Electrical Workers, Machinists, Boilermakers, Teamsters, Operating Engineers, Millwrights and Pipefitters.
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ASARCO Negotiations Timeline | ||
|
Date |
Event | |
| November 17, 1999 | Grupo Mexico purchases Asarco for $2.2 billion, and through it, a controlling interest (54.2%) in Southern Peru Copper Corporation | |
| January 2003 | U.S. Department of Justice allows Asarco's sale of SPCC to proceed after Grupo Mexico agrees to contribute approximately $100 million into a trust fund for Asarco's Superfund liabilities. | |
| March 30, 2003 | Asarco transfers its controlling interest in Southern Peru Copper Corporation to Americas Mining Corp., a holding company and owned by Grupo Mexico for $550 million in short term debt. | |
| July 2003 | Asarco files suit asserting its right to unilaterally reduce retiree health care benefits. | |
| July 1, 2003 | Last wage increase received by hourly employees at Asarco Copper Group locations. | |
| August 1, 2003 | Asarco implements retiree health care plans including higher retiree premiums, deductibles, higher coinsurance, and lower reimbursement for prescription drugs. | |
| May 5, 2004 | Opening bargaining session between Unions and Asarco for contracts expiring July 1, 2004. | |
| July 1, 2004 | Contracts covering approximately 750 hourly employees expire between Asarco and Unions at the Company's facilities in Amarillo, Texas; Hayden, Arizona; Sahuarita, Arizona (Mission mine); Marana, Arizona (Silver Bell mine); and El Paso, Texas. The Company refers to these facilities as the Asarco Copper Group. The Unions continue working without an agreement. | |
| July 1, 2004 | Last wage increase received by hourly employees at Asarco Ray Mine. | |
| March 7, 2005 | National Labor Relations Board (NLRB) issues a complaint against Asarco for its failure to provide information critical to bargaining. The NLRB also dismissed ASARCO's allegations of bad faith bargaining against the USW and other unions. | |
| July 1, 2005 |
The labor agreement between Asarco and Unions covering hourly employees at the Company's Ray copper mine expires. | |
| July 2-6, 2005 | Unions begin strikes at Asarco in protest over alleged unfair labor practices and the Company's demands for wage and benefit concessions at a time of the-record copper prices. | |
| August 10, 2005 | Asarco L.L.C. files for Chapter 11 bankruptcy protection in response to growing environmental and asbestos obligations. | |
| September 15, 2005 | Asarco announces it will hire replacement workers to attempt to operate facilities during labor dispute. | |
| October 3, 2005 | National Labor Relations Board (NLRB) issues complaints against Asarco for its refusal to pay certain employees for earned vacations and unilateral changes to policies, direct dealing and for illegally threatening and intimidating hourly workers. | |
| October 21, 2005 | Unions file unfair labor practice charges with NLRB contending that Asarco has bargained in bad faith. | |
| November 7, 2005 | Asarco and Unions reach agreement on a 13-month agreement which extends the previous labor agreements, including successorship protection in the event of the sale of the company or one or more of the plants and restoration of S&A and disability benefits for injured workers and retirees. | |
| November 12, 2005 | Union members approve agreement and begin returning to work. | |
| May 12, 2006 | Copper price reaches all-time high of $3.99 per pound on London Metal Exchange. | |
| August 21, 2006 | Negotiations begin on new contract. | |
| December 22, 2006 | Asarco and Unions reach understanding in principle on terms of new contract after all-night bargaining session, subject to documentation. | |
| December 25, 2006 | Asarco and Unions agree to extend current contract scheduled to expire December 31, 2006. | |
| December 29, 2006 | Copper averages $3.05 per pound on the London Metal Exchange for calendar year 2006, compared to $1.65 per pound in 2005 and $1.30 per pound in 2004. | |
| January 6, 2007 | Asarco and Unions finalize the full contract language documenting the settlement. Union bargaining Committee unanimously recommend ratification of tentative agreement by membership | |