FOR IMMEDIATE RELEASE
November 28, 2007, 5pm ET

CONTACT: Andrew McDonald
202-730-7338
Andrew.mcdonald@seiu.org

Australian and US Unions Team Up to Hold the Carlyle Group Accountable For Treatment of Workers

New global campaign announced as Carlyle plans takeover of Coates Hire in Australia

With global buyout giant the Carlyle Group set to take over Australia’s largest equipment rental company, Coates Hire, Australian and US unions are announcing a new global effort to hold the Carlyle Group accountable for the treatment of workers at its portfolio companies.

With private equity firms now responsible for the employment standards of tens of millions of workers worldwide, the impact of private equity takeovers on conditions for workers in bought out companies is raising growing concerns. Carlyle Group portfolio companies employ more than 280,000 workers.

Australian and US unions are planning a demonstration at the National Hire Annual General Meeting Friday November 30^th where the agenda will include planned takeover of Coates Hire by National Hire, one of Coates Hire’s competitors) and the Carlyle Group.

Australian unions, including AMWU (Australian Manufacturing Workers Union), ETU (Electrical Trades Union) and the TWU (Transport Workers Union), echo concerns in the US that the Coates Hire buyout could come at the expense of workers and taxpayers and are calling for commitments by the Carlyle Group to guarantee workers’ conditions. The unions are seeking that negotiations begin as soon as the Coates Hire takeover is approved.

Glenn Thompson, AMWU Assistant National Secretary, said that Australian unions fear the Coates takeover may result in a restructure and job losses, or decreases in wages and conditions in order to squeeze more profits out of the new company.

"This takeover will reportedly be funded through $2.2 billion in debt owed to global banks. It is unclear how this will affect workers’ entitlements and job security should the company go badly, even if the takeover ‘succeeds’," said Thompson. "We are calling on the Carlyle Group and National Hire to commit to upholding the current Coates Hire Enterprise Agreement covering all workers across the new organization if their takeover bid succeeds."

Global Effort Focused on Carlyle

As part of their new global effort the unions are planning to:

Communicate directly with Carlyle investors, such as pension funds, the concerns over treatment of workers at companies owned by Carlyle worldwide

Bring Carlyle portfolio company workers from different countries together to talk about their experiences following buyouts

Highlight low wages, lack of health insurance and other benefits, poor working conditions, and unfair labor practices at Carlyle-owned companies

In the United States, SEIU (Service Employees International Union) is raising concerns that workers at the companies owned by Carlyle contribute to their companies’ value and success, but do not share in the benefits of billion dollar buyout deals that pay top executives millions of dollars. In some cases, workers are hurt following Carlyle buyouts. Over the last year, more than 5,500 layoffs were announced at Carlyle portfolio companies.

"As an owner of these companies, Carlyle is responsible for the wages and working conditions of hundreds of thousands of people," said Stephen Lerner, Director of the SEIU Private Equity Project. "Until now Carlyle has refused to own up to its responsibilities. This is the beginning of a worldwide effort to hold Carlyle accountable."

SEIU has called on the Carlyle Group and other private equity firms to ensure workers have a voice in buyout deals and benefit from their outcome and to ensure workers have a voice at work.

Background

Coates Hire is Australia’s largest equipment rental company, with employees represented by the Australian Manufacturing Workers Union, the Electrical Trades Union and the Transport Workers Union. National Hire is a smaller competitor to Coates Hire in the Australian market.

With more than $75 billion in assets under management, the Carlyle Group is one of the world’s largest corporate buyout firms.  Washington, DC-based Carlyle owns companies that together employ more than 280,000 workers. The firm’s three co-founders, David Rubenstein, William Conway, and Daniel D’Aniello each have a net worth estimated by Forbes to be $2.5 billion. A recent study estimated Rubenstein’s 2006 compensation at $260 million.

With 1.9 million members, SEIU (Service Employees International Union) is the fastest growing union in North America. SEIU members work in the health care, public services, and property services sectors. For more info, visit www.BehindtheBuyouts.org