The private equity industry should make changes to work better for working people, says Andy Stern, president of the 1.8 million-member SEIU (Service Employees International Union) in testimony today at a hearing on “Private Equity’s Impact on Workers and Companies” in the U.S. House of Representatives Committee on Financial Services.
“But if private equity firms will not take steps to change, Mr. Chairman, Congress should legislate,” Stern said in his testimony.
In the testimony, Stern raises concerns about certain private equity practices and their impact on workers, companies, and the financial markets. Those practices are:
– Risky deals that put workers and companies at risk- Private equity “exuberance”- Quick flips and sell-offs- Conflicts of interest- Transparency and disclosure issues- Missed opportunities for workers
A full transcript of Stern’s testimony is available here.