Catherwood LibraryILR School

A recent report by the American Federation of Teachers (AFT) has highlighted concerning labor practices at private-equity-owned companies, including child labor, mass layoffs, and anti-union activities. These practices are said to pose financial risks to public pension funds, notably those for teachers, which have invested billions into private equity. The report has prompted trustees of pension funds to intensify their oversight of these investments. Notably, the Labor Department found that Packers Sanitation Services Inc., owned by Blackstone Group, employed children in hazardous jobs, leading to a $1.5 million fine. This scrutiny has resulted in some positive changes, such as union agreements improving worker conditions. The report urges pension fund trustees to demand greater transparency and accountability from private equity to ensure their investments do not undermine labor standards.