Report Released in Paris Highlights Risky Investment, Labor Relations Strategies
WASHINGTON, Sept. 12, 2011 /PRNewswire-USNewswire/ -- The International Brotherhood of Teamsters released its analysis of Sun Capital Partners to a global gathering of institutional investors this week in Paris. The report, titled "From Toxic Assets to Toxic Releases" will be distributed to investors attending conferences with the Committee on Workers Capital (CWC), the International Corporate Governance Network (ICGN) and the United Nations Principles of Responsible Investment.
The report, subtitled "How Sun Capital Partners' Investment Strategies Destroy Economic Value, Undermine Worker Safety and Destabilize Communities," reviews Sun Capital's overall record, recently marred by a rising number of bankruptcies filings and distress among its portfolio companies.
The report highlights the painful human toll of aggressive slash-and-burn management, and provides an in-depth case study of Emerald Performance Materials, LLC, a chemicals company acquired by Sun Capital in 2006. In the report, C. Thomas Keegel, Teamsters General Secretary-Treasurer, cautions investors looking at Sun Capital Partners.
"Institutional investors should be wary of investing with Sun Capital Partners, due to the social and environmental risks highlighted in this report, and should closely review the overall financial risk-orientation of Sun Capital's portfolio," Keegel said. "In the case of Emerald Performance Materials there is cause for alarm due to terrible health and safety conditions of its workers and the broader community."
Workplace safety and health issues are a major concern for the CWC. Trustees and pension fund professionals attending the CWC meeting spoke with a union representative from locked-out workers of the Emerald Performance Materials Henry, Ill., plant about the ongoing industrial safety crisis at the chemical manufacturer.
Greg Wheet, Secretary-Treasurer of Teamsters Local 627, addressed the meeting, stating, "Henry, IL, Emerald workers have been locked out by the Company for nearly six months after rejecting unsustainable cuts in wages, benefits and unacceptable health and safety conditions. Since less-skilled workers have taken our place there have been nine accidental releases into the air reported to federal agencies, including carbon disulfide and hydrogen sulfide, which are extremely toxic. On September 2nd there was a sodium hypoclorite spill into the ground. This has got to stop."
The union is asking for a substantial improvement in health and safety conditions and better economic terms.
Founded in 1903, the Teamsters Union represents more than 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. Visit www.teamster.org for more information.
SOURCE International Brotherhood of Teamsters