FOR IMMEDIATE RELEASE
November 30, 2007

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

 

SEIU President Andy Stern Calls On States and Pension Funds to Ensure Investments Support Respect for Human Rights

Abu Dhabi investment in the Carlyle Group raises concerns for workers’ whose pension money also is invested with Carlyle

LOS ANGELES – In remarks today at the Asia Society of Southern California, SEIU President Andy Stern raised concerns about Abu Dhabi’s recent $1.35 billion investment in the Carlyle Group, saying sovereign wealth investment deals should not serve to underwrite human rights violators or anti-worker business practices, but instead work “to open markets and minds.”

Stern called on states and pensions funds that invest alongside sovereign wealth funds in firms and funds such as Carlyle, to examine “the full range of options” to ensure their investments not only earn appropriate returns, but also support reforms and respect for basic human rights, at home and abroad.

The State Department in 2006 called the United Arab Emirates’ respect for human rights “problematic.” Carlyle has built a $75 billion business that makes David Rubenstein and his partners rich at the expense of working people and taxpayers.

The following is an excerpt from Stern’s remarks today in Los Angeles:

“The explosion of investment by sovereign wealth funds provides an important opportunity for Western companies and governments to partner with developing nations to promote responsible business practices and democratic reforms. The Government of Abu Dhabi’s recent investments in the Carlyle Group and Citigroup raise critical questions about who the winners and losers will be in these global mega-transactions.

“These deals should not serve to underwrite human rights violations and anti-worker business practices. We should use these opportunities to open markets and minds.

“With union pension dollars invested in funds and firms like Carlyle, workers deserve to know what role their hard-earned retirement money is playing in supporting governments with well-documented records of abuses.

“Instead of being passive investors, we think states and public pension funds should provide leadership and examine the full range of options to ensure their investment capital is not only earning appropriate risk-adjusted returns but also supporting reforms and respect for human rights, both at home and abroad.”

 

About SEIU

The 1.9 million SEIU members participate in pension funds with more than $1 trillion in assets, most of which invest 5 percent to 10 percent of their assets in private equity. SEIU is a longtime advocate of responsible corporate governance practices and an active member of the Council of Institutional Investors, an organization of more than 130 pension funds whose assets exceed $3 trillion. For more info, visit www.BehindtheBuyouts.org