Members of the United Steelworkers at six smelting and refining operations owned by
Members of seven other unions also ratified the contract.
Asarco is reorganizing its business and a bankruptcy court in Corpus Christi, Tex., approved the contract.
“The agreement will allow the company to increase copper production during this time of unprecedented high copper prices,” says Doug McAllister, Asarco’s general counsel.
The unions gained a “successorship” clause that would require a potential buyer of all or part of Asarco to recognize the unions and to negotiate a labour agreement before completing a sale.
Asarco says that with a full workforce production resumed immediately.
Most of Asarco’s workforce hit the picket lines on July 2 after members of the United Steelworkers Union rejected company demands for concessions, primarily on benefits. The company filed for protection under United States bankruptcy laws on Aug. 10, citing escalating asbestos claims and environmental remediation costs.
The proposed labour deal comes on the heels of the resignation of Asarco’s CEO, Daniel Tellechea. Tellechea’s departure came about a month after the National Labor Review Board (NLRB) issued a complaint concerning unfair labour practice allegations filed by the unions. The complaint will be heard by an administrative law judge. Asarco plans to name a replacement for Tellechea shortly.
The company continues with its Chapter 11 court proceedings, and entered recently into a US$75-million debtor-in-possession financing arrangement with CIT Group/Business Credit.
Under the deal, Asarco can only draw down US$20 million until the bankruptcy court approves the release of the remaining funds. A hearing was scheduled for Nov. 28.
“Asarco has been performing on its post-bankruptcy obligations to suppliers and vendors and the closing of the CIT credit facility will assist the company in continuing to meet its post-bankruptcy operating expenses going forward,” says Asarco chief financial officer Genaro Guerrero.
In other news, operations have resumed at the company’s Hayden smelter, situated 112 km northeast of Tucson, Ariz. The smelter had been shut down since Oct. 2 to allow for repairs to the Inco flash furnace. The north end of the furnace wall suffered a failure due to leaks in the water jackets. There were no injuries and the damage was confined to the flash furnace.
The Hayden operations include a 27,400 ton per day concentrator and a 720,000 ton per year copper smelter comprising an oxygen flash furnace, converters, anode casting, oxygen plant, and acid plant.
The operation currently produces about 9,000 tons of copper anode per month. Anodes are shipped to the Amarillo, Tex., copper refinery.
Asarco is a subsidiary of Mexican copper giant
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