Asarco and union reach labour agreement

Denver — Asarco, a wholly owned subsidiary of Grupo Mexico, has reached a contract agreement with the United Steel Workers.

The three-year deal gives workers a wage increase of US50 per hour by July 2002, or when the price of copper hits US$1 per lb., and a second increase of US50 per hour by July 2003.

The agreement includes modifications to work rules and practices. These could have a positive impact on productivity and costs.

The previous contract expired June 30, but negotiations continued through July 1, until agreement was reached. The union membership still has to ratify the new agreement.

The United Steel Workers represents 1,450 workers at Asarco’s:

• Mission and Silver Bell copper mines in Arizona;
• Hayden copper smelter, also in Arizona; and
• El Paso smelter and Amarillo refinery in Texas.