Workers Funding Other Workers’ Misery
Critics of private equity often stress the business model’s impact on workers. Blackstone’s Packers Sanitation Services, Inc., was found to have illegally hired over 100 minors and placed them in dangerous jobs. Arby’s and Dunkin’ Donuts owner Roark Capital lobbied against a federal minimum wage. Fairmont and Sofitel owner Brookfield Asset Management has repeatedly threatened to retaliate against hotel workers attempting to unionize. And when the private equity purchase of Toys ‘R’ Us drove the toy retailer into bankruptcy, leading to a loss of over 30,000 jobs, its owners Bain Capital, KKR, and Vornado Realty Trust made off with about $200 million in management fees.
