USW Releases Report on Grupo Mexico and ASARCO Bankruptcy

Grupo Mexico has a Poor Record of Stewardship

Contact: Terry Bonds (505) 878-9756

(Pittsburgh, PA.) – The United Steelworkers (USW) union today released a report examining Grupo Mexico’s record and based on that record, the potential impact on the long term viability of ASARCO and on US workers, communities and the environment if Grupo Mexico were to regain control of ASARCO when it exits bankruptcy in the coming months.

The report, titled “Grupo Mexico and ASARCO: The Record Speaks for Itself,” looks at a number of Grupo Mexico’s past business practices, as described in various lawsuits brought against the company and independent media reports.  They include allegations that Grupo Mexico stripped ASARCO of its most valuable assets, leaving the company insolvent and unable to pay millions in asbestos and environmental liabilities; disregard for the health and safety of its employees and their communities; a poor environmental record; and poor employee relations.

The outcome of the reorganization process will have dramatic impact on ASARCO’s most significant stakeholders – its employees and the Department of Justice, on behalf of the nation’s taxpayers, who are the company’s largest creditors.   The Steelworkers contend that any reorganization plan must promote both sustainable employment and a credible plan for addressing ASARCO’s environmental legacy.

According to Terry Bonds, Director of USW District 12, “Based on Grupo Mexico’s record, we believe it is clear that Grupo’s resumption of control of ASARCO would be detrimental to the interests of U.S. workers and communities and the nation’s taxpayers.  This is something that the public needs to know.”

Click here to download the full report. 

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