Unite the Union

Unite the Union

November 16, 2007 10:04 ET

Tax Relief From Private Equity Firms Should Be Conditional on Employment Guarantees

Embargoed until Monday 19th November

LONDON, UNITED KINGDOM--(Marketwire - Nov. 16, 2007) - In advance of the Walker Report due out tomorrow (Tue 20th Nov) Unite are calling on the Government to remove tax relief for Private Equity firms unless they guarantee employment.

The report, written by City Banker Sir David Walker, is the industries response to the criticism it has received over jobs that have been lost and pension funds that have gone bust under private ownership.

Derek Simpson, Joint General Secretary for Unite says;

"Unless the Government enforce some kind of regulation Private Equity firms will continue to operate shrouded in secrecy. Employees will end up with no more certainty on job security, pay and pensions and we will remain in the dark as to whether they pay anymore tax than their cleaners.

In order to retain tax relief on borrowing and other tax perks Private Equity firms must be able to demonstrate that jobs and pay and conditions in the companies they acquire are not cut."

Notes to Editors:

150 Unite members recently lost their jobs when Lil-lets was bought out by private equity firm Electra and UK operations were transferred to Taiwan and South Africa.

Sir David Walker worked at Morgan Stanley for 2 years and is a former executive director of the Bank of England.

David Walker produced a report for the PE Firms Association (BCVA) earlier this year.

Contact Information

  • Jody Whitehill
    07768 693956