Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsEconomics, government & businessPay & benefits

Unions accuse heads of Carlyle Group, Kohlberg Kravis Roberts, 3i and Permira of ‘arrogance’ in tax break row

by Gareth Vorster 25 Jun 2007
by Gareth Vorster 25 Jun 2007

Unions have branded private equity chiefs as “arrogant” and “evasive” following their appearance before the Treasury Select Committee last week.


The heads of Carlyle Group, Kohlberg Kravis Roberts (KKR), 3i, and Permira, are behind some of the biggest UK takeover deals, including the recent buyouts of Alliance Boots, the AA and Birds Eye.


The power brokers were appearing before MPs as part of an ongoing investigation into whether the private equity industry ought to be more transparent and tightly regulated.


Critics of private equity deals have argued that they lead to huge job cuts and that the directors enjoy generous tax breaks.


Paul Maloney, national organiser for the AA section of the GMB union, told Personnel Today: “The equity chiefs got off lightly. They didn’t answer a single question without showing arrogance and evasiveness. Questions still remain unanswered.


“They effectively stuck two fingers up at the committee and continue to line their pockets with what are essentially tax-free payments,” Maloney said.


Paul Kenny, GMB general secretary, accused the firms of being short-term asset strippers and of axeing jobs. He said: “They are not in it for the long haul, they are in it for making money fast and they don’t care who gets hurt in the process.”


But all four businessmen denied the union allegations, insisting their industry created jobs. They argued their deals generated good returns for millions of individuals through their pension funds. Dominic Murphy, KKR managing partner, even said private equity was “a force for good”.


Jack Dromey, deputy general secretary of the super union Unite, told the committee that private equity firms were enjoying a tax loophole.


Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“It is to deny social responsibility to go from a public company to a world of private equity where you have people making fortunes in secret while the workers pay the price,” he said.


Dromey called for more transparency in future deals. “We have provided sufficient evidence to call for action, and what we now need is for the government to be on the side of the law, which should be changed,” he said.

Gareth Vorster

previous post
Suppliers with poor diversity records will fail in public sector procurement battle
next post
Businesses warned to check they have valid TV licences before allowing staff to watch Wimbledon at work

You may also like

Restaurant tips should be included in holiday pay

21 May 2025

Fewer workers would comply with a return-to-office mandate

21 May 2025

Redefining leadership: From competence to inclusion

21 May 2025

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

Consultation launched after Supreme Court ‘sex’ ruling

20 May 2025

Uncertainty over law hampering legal use of medical...

20 May 2025

Black security manager awarded £360k after decade of...

20 May 2025

Employers ‘worryingly’ ignorant about stress risk assessments

20 May 2025

UK and EU agree to collaborate on ‘youth...

19 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+