print this page

USW Opposes ASARCO Bankruptcy Recommendation

For Immediate Release                                        September 1, 2009

(Pittsburgh) -- The United Steelworkers (USW) is disappointed by the report issued on August 31, 2009, by the federal bankruptcy court in Corpus Christi, Texas recommending confirmation of the plan of reorganization proposed by Asarco, Incorporated, the current corporate parent of ASARCO, LLC.  The bankruptcy court’s recommendation will now be considered by the federal district court in Brownsville, Texas.

Asarco, Inc. is affiliated with Mexico City-based conglomerate Grupo Mexico.  Throughout the more than four years that ASARCO has been in bankruptcy, Asarco, Inc. has been displaced from the management and control of the business.

The USW and Asarco, Inc. have bargained over a labor agreement that would take effect upon Asarco, Inc. regaining control of the business, but have been unable to finalize a contract.  By contrast, the USW has reached an agreement with Sterlite USA, the entity that is sponsoring the plan of reorganization proposed by ASARCO.

According to Robert LaVenture, Director of USW District 12 and chairman of bargaining with ASARCO, the USW is continuing to closely analyze the bankruptcy’s court lengthy report. LaVenture stated that “the USW believes the bankruptcy court failed to deal with the Union's key argument that Grupo Mexico’s proposed plan of reorganization cannot and should not be confirmed because of its failure to reach a new labor agreement with the USW, which is an obligation found in the current collective bargaining agreement.”  LaVenture states that the Union intends to file pleadings in the district court addressing what the USW believes to be the legal and other errors in the bankruptcy court’s recommendation.

Contact: Manny Armenta  (520) 465-3617

#  #  #