4th qtr average LME copper price daily average = $3.24 which results in a $1890 bonus payable to each eligible ASARCO employee at the end of January 2014.
Union states progress was made in negotiations with the company withdrawing several (not specified) demands.
Still on the table per union are company demands for:
Increased health care premiums.
Reduction of copper price bonus.
Changes to current drug and alcohol policies.
Union states they are still far from a settlement.
Nothing has been mentioned recently with regard to the successorship demand of the company which is a very important demand if ASARCO ever goes up for sale. I would think that if this company demand was off the table the union would have mentioned it.
That is an interesting request. Do they want it more lenient? From what I have seen lately, the unions are for protecting workers by making sure the people working next to them are not under the influence of drugs or alcohol.
I have no idea what changes the company is asking be made to existing "drug and alcohol policies" but the USW is obviously against it and since they've included it in their listing of three items that they listed as sticking points in the negotiations they must be important to the union.
I do know that in the past, the USW has railed against increased health care premiums which they stated may increase employee costs by 800% to 900% ...... but I don't know what an increase of this percentage means in actual dollars per employee ....... it could be insignificant or it could be huge depending on the existing base.
The same applies to my knowledge of the copper price bonus. I do know that the copper price bonus for the 3rd and 4th quarters of 2013 amounted to $3780 per eligible employee at a time of low copper prices.
But to me, the "successorship demand" is the biggie since this company demand would do away with almost all provisions of the existing contract should Grupo sell ASARCO. That is, that any company purchasing ASARCO would not be obligated by the existing contract and that includes union representation. Ask yourself why GRUPO would make this demand? Then ask yourself why the USW did not specifically list this demand as a sticking point in negotiations or if the company pulled this demand off the table, why hasn't the USW been crowing about it? I suspect this demand is still on the table and if so, it's HUGE.