Roundtable for private equity
Top level talks between unions, government and business are on the cards following a Unite-backed push to protect workers caught up in private equity takeovers.
Under current rules, workers’ jobs, pay and employment conditions are protected during a traditional company buyout with a formal change of ownership.
But these so-called TUPE regulations do not apply to private equity takeovers which involve the purchase of large amount of shares. Unite also argues that employees in companies bought by private equity are denied consultation on business plans, jobs and pensions.
Nottingham East MP John Heppell said the crucial point was not the legal basis of the takeover but its effects on workers. He cited several private equity takeovers in recent years involving wholesale changes to job contracts, longer hours and less pay and benefits.
John Heppell said: ‘If private equity wants to be seen a responsible player in the business community then it has to abide by the same rules and obligations. We are not asking for different laws, just the same ones governing other companies.’
Junior minister Patrick McFadden’s offer of roundtable talks was made during a parliamentary debate over John Heppell’s Bill. The talks will be led by business and enterprise minister John Hutton.
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