Lonmin on Precipice of Labor Strike as Union Ruling Looms

Lonmin Plc, the world’s third-largest platinum producer, may face a strike by its biggest union, depending on a ruling tomorrow over the labor group’s recognition rights, according to analysts.

There’s “a 50-50 chance” of labor action should the Association of Mineworkers and Construction Union be dissatisfied with the outcome of arbitration, Peter Major, a mining analyst at Cadiz Corporate Solutions, said by phone from Cape Town yesterday. “It’s really on the precipice.”