Mexican Company Settles Strike with Part of Work Force

Grupo Mexico, the third largest copper producer in the world, reached a settlement with the union representing some of its striking workers at its various facilities. Union representatives said the workers at two of the four plants on strike, since March 5, approved the deal.

Union officials said the strike shut down operations at the four Mexican units, including a copper mining, smelting and refining facility at La Caridad, Sonora, and zinc and other operations in Zacatecas, Coahuila and San Luis Potosi states.

Workers at the La Caridad plant decided to stay on strike while those at the Zacatecas plant had not yet taken a decision on continuing their strike action. Workers at both plants rejected the company's pay offer.

Grupo Mexico has adopted strict cost-cutting measures in recent months, including mine closures and extensive layoffs. The company has operations in Mexico, the United States and South America.

The company said late last year that it would cut copper output by 151,000 metric tons and zinc production by 88,000 metric tons this year as part of its cost-cutting overhaul.

The mining giant said last month its fourth-quarter and full-year 2001 earnings were pummeled by unprecedented drops in the value of the metals it produces.

About 3,000 workers walked out of the copper mining, smelting and refining facility at La Caridad, in Mexico's northern Sonora state and from zinc operations in Zacatecas and Coahuila states last Tuesday.