VENTURE CAPITALISTS AND WORKERS' RIGHTS

Early day motion 873, tabled 7 February 2007 by Gwyn Prosser (Labour). Signed by 34 members.

That this House regrets that venture capitalists Permira took over Birds Eye at Hull in September 2006 promising job security and stability for a minimum of three years for staff, but announced closure and over 600 job losses in January 2007; notes that, since the AA was purchased by CVC and Permira in 2004, some 3,400 staff who assist motorists have been sacked; condemns the company's union-busting tactics; further notes that remaining employees, many of whom are GMB members, have been pressured to cope with extra work resulting in motorists abandoned at the roadside; is concerned that AA membership charges have risen by up to 30 per cent. while company profits have doubled to £200 million; is alarmed at reports that the venture capitalists are to borrow a further £500 million to pay themselves a special dividend, burdening the company with debts of £1.9 billion, jeopardising employees' future pensions; considers this action to be blatant asset-stripping by individuals protecting their own assets by operating through limited liability companies; recalls that Permira's asset-stripping of Little Chef resulted in mass closure of restaurants with consequent job losses; views with alarm that venture capitalists are now seeking to buy Sainsbury's, threatening the future of 769 stores and 155,000 jobs; and calls on the Government to reform company law to prevent speculators from exploiting the protections afforded by limited status and ensuring that the interests of the customer and the employees should not be undermined by the greed of venture capitalists.

Signatures by party: Labour 31, Liberal Democrat 2, Conservative 1.