News From USWA: US and Mexican Metals Unions Rally for Justice at Grupo Mexico; Stockholders Alerted to Power of International Labor Solidarity

Business Wire, March 28, 2005

MEXICO CITY -- A group of over one hundred US and Mexican trade unionists and their supporters held a rally today at Grupo Mexico (BMV:GMEXICOB) headquarters in Mexico City demanding that the Company respect workers and their unions. The rally was jointly organized by Mexico's Miners and Metalworkers Union (STMMRM) and United Steelworkers of America (USWA). It included a delegation of USWA elected officers and staff.

Rally participants waved signs, held banners and chanted slogans calling for just treatment of workers at all of Grupo Mexico's operations. Grupo Mexico, the world's third largest copper producer, has operations in Mexico, the US and Peru.

Inside the Company's headquarters, a special meeting of Grupo Mexico subsidiary Southern Peru Copper Corporation (SPCC) (NYSE, LSE: PCU) stockholders was being held to finalize the transfer of Minero Mexico, Grupo Mexico's Mexican mining assets, to SPCC.

"Grupo Mexico has claimed this transfer is in the best interests of stockholders," said STMMRM President Napoleon Gomez Urrutia. "However, it should not result in shutdowns or job reductions at any of its operations. STMMRM, together with our union brothers and sisters in the US and Peru, will not allow Grupo Mexico to forget the interests of workers."

Grupo Mexico has faced multiple strikes at its operations in Peru and Mexico in recent years. The Company is currently in negotiations with USWA and other unions representing about 750 workers at Grupo Mexico owned Asarco operations in Arizona and Texas. Contracts covering these workers expired on July 1, 2004, and contracts covering workers at Asarco' Ray Mine expire July 1, 2005.

"Grupo Mexico's Asarco is not treating our members and retirees with justice or dignity," said USWA sub-director for the US Southwest Manuel Armenta, who participated in the rally. "Despite high copper prices, Asarco is demanding harsh concessions in nearly every area."

"Asarco has broken the law with its illegal, mean-spirited approach to bargaining. The United States National Labor Relations Board recently issued a complaint against Asarco for its refusal to provide information critical to bargaining," stated Armenta.

"And Asarco broke its promise to retirees by unilaterally cutting their healthcare benefits, benefits which Asarco had earlier committed to provide," added Armenta.

The rally builds upon recent efforts by STMMRM and USWA to solidify their ties.

USWA sent a delegation of members employed by Asarco in Arizona to Grupo Mexico's smelter in Nacozari in October 2004 as a show of solidarity with the striking STMMRM members there.

Last month, at a meeting between Gomez Urrutia and USWA President Leo Gerard in Phoenix, Arizona, the two unions formally committed to joint actions when in disputes with common employers.

USWA and STMMRM have also recently been involved in efforts to form a coalition of metals and mining industry unions throughout the Western Hemisphere. The unions representing workers at SPCC's operations in Peru have also participated in these efforts.

"We hope that Grupo Mexico will realize the power of international labor solidarity, and that it's in the interests of all of the Company's stakeholders to respect our unions," said Gomez Urrutia.

STMMRM represents over 250,000 metal and mining industry workers in Mexico. It represents workers at Grupo Mexico's Cananea and La Caridad mines and its Nacozari smelter.

The USWA has over 600,000 members in the United States and Canada and represents workers in steel, rubber and tire, aluminum, mining, glass, forestry and health care.

www.uswa.org