Private equity's plans for self-regulation of cosy tax-havens in the Cayman Islands were rejected today by Unite, Britain's largest union.
Speaking at the Institute of Chartered Accountants of England and Wales conference on private equity, Jack Dromey, Unite deputy general secretary, will say the putative plans from the Walker Commission lack credibility.
"Walker will not work," said Mr. Dromey. "He has identified the problems of accountability, transparency and the rights of workers but has signally failed to provide either a lead or a solution.
"Public companies are accountable in law. Private equity is not. Self regulation will not end secrecy or protect workers. It is an illusion to believe that self regulation of private equity operations from the Cayman Islands will work.
"That is why we need firm government action to compel in law private equity to open up like public companies. It is why we need changes so private equity deals are covered by TUPE so that workers are protected in takeovers."
"After the scandals of lost jobs and plant closures private equity is getting the message that they are not the saviours they portray themselves as," he added.. "The public want action on private equity, not self regulation by private equity."
Note to editors: For a copy of Mr. Dromey's full speech please email to firstname.lastname@example.org
Unite was formed on 1st May 2007 from a merger of amicus and the Transport and General Workers Union (T&G)
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