Asarco workers go out (July 18, 2005)

Workers at most of the Asarco facilities of Grupo Mexico (GMEXICOB-M) in Arizona and Texas are on strike following the collapse of negotiations between the company and the United Steelworkers.

The strike affects the Ray, Silver Bell, and Mission mines in Arizona, electrolytic copper plants at Ray and Silver Bell, and the company’s smelter in Hayden, Ariz., and refinery in Amarillo, Tex.

The Steelworkers charge Asarco with unfair labour practices, while Grupo Mexico contends it needs “decisive worker support” for cost-cutting at the Asarco operations, which are among the highest-cost copper producers in the world.

Management employees are keeping the plants running, at about 50% capacity. Grupo Mexico estimated annual production might fall short of estimates by 100,000-125,000 tonnes. It said the contribution of the Asarco business unit to its earnings had been negligible, so there would be little impact on earnings.