Labor Analysts Say Lonmin Deal Dangerous Precedent

Bloomberg reported Lonmin Plc (LSE:LMI)’s record pay increase for employees to end an illegal strike at its biggest mine in South Africa sets a dangerous precedent, labor analyst Loane Sharp said.

As quoted in the market news:

Employees agreed to return to work at Marikana, which produced about a 10th of global platinum supplies, today after winning increases of as much as 22 percent. That’s the single biggest raise by a mining company in the country’s history, Sharp said. Seventy-seven percent of workers reported for duty, said Sue Vey, an external spokeswoman for Lonmin.

Click here to read the full Bloomberg report.