No Deal

For the second time in two months, USW International Union Local 11-0001 members have rejected a proposed labor contract recommended by the union negotiating committee and the Stillwater Mining Company (SMC) for the Nye site and processing facility in Columbus.
The vote came in shortly before 10 p.m. Monday night, July 27, according to Union President Scott McGinnis.
Negotiations have been ongoing since March, with the first failure to ratify the proposed the contract coming in June.
The two sides reached an agreement on a proposed 4-year contract in May. The current contract expired at midnight on June 1 but was extended to midnight on June 12, but workers have continued to fulfill their job duties pending negotiations.
In a press release issued Tuesday morning, July 28, SMC stated the following:
“Following this latest decision by the union members and in light of the current metal price environment, Company management continues to consider all alternatives to create a situation that will best promote the long-term economic viability of operations at the Stillwater Mine and Columbus processing facilities.”
The specific terms on the proposed contract have not been released by either side officially to the News. McGinnis has previously said the first proposal involved a cumulative 25 percent cut in pay, incentives, benefits and some retirement. Public Affairs Manager John Beaudry has said that proposal represented less than 5 percent reduction from the current contract with an opportunity to make that back and more with productivity improvements.”
Tensions between union members and the mine have been rising since March with trouble arising over the launching of an advertising campaign and first quarter profit reports of $23 million, coupled with a pay raise for SMC CEO Mike McMullen. That trouble became visual when several wives of miners took to the corner of Pratten Street and Pike Avenue in Columbus on a regular basis, holding signs that read “If Provoked We Will Strike” and “CEO Gets Raise! Miners Take Paycut? Unfair!”
SMC’s second quarter earnings are slated to be announced this Friday, July 31.