Wall Street vs. the Labor Movement

Source: Ozgur Orhangazi, New Labor Forum, Vol. 17 no. 1, Spring 2008

In recent years, private equity funds–firms that pool funds from investors to buy companies, restructure them, and re-sell them–have acquired firms in various sectors and dominated the news headlines in the business press. In 2006, there were more than a thousand private equity buyouts worldwide, with an estimated value ranging from five hundred to seven hundred billion dollars. … The rise of these new institutions has had a profound impact on economic performance in general and labor relations in particular. This article contextualizes this recent boom in private equity funds and such within the framework of financialization, and outlines their direct and potential impacts on labor.

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