Stillwater Mining Reorganizes, Reduces Workforce Due to Deteriorating PGM Market

Stillwater Mining (NYSE:SWC) provided an update on previously announced reorganization plans and labour matters. The company will reduce its workforce by 119 employees in light of the deteriorating platinum group metals (PGM) market, and has modified its mine plan to focus on the most profitable mining areas within the Stillwater Mine.
The company provided the following update regarding labour matters:

The labor contract with employees represented by the USW International Union Local 11-0001 at the Stillwater Mine andColumbus processing facilities expired on June 12, 2015. Subsequently, employees at these sites voted twice, and rejected, a tentative labor agreement reached on May 27, 2015 that was recommended by the USW International Union Local 11-0001. Following the votes, employees have continued to work under the terms of the previously expired contract. On July 30, 2015, the Company notified the union that negotiations had reached an impasse and that it would implement its last, best and final contract offer, which is the same agreement previously rejected by the represented employees.
The material points of the contract are:

• No increase in base wages for each of the first two years of the agreement
• Simplification of the incentive program and the introduction of metrics that better align employee and shareholder outcomes

The Company will implement the new agreement on September 1, 2015.

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