[LAF] call to action against KKR for july 17

[stevphen shukaitis]

> CALL FOR ACTION AGAINST KKR ON JULY 17!
>
> Private equity companies have gained massive influence, power and  
> wealth because they've stayed invisible to public attention and  
> scrutiny. It is time for that to change!
>
> On Thursday 17 July 2008, thousands of trade unions, community  
> organisations, environmentalists, workers and activists will be  
> taking part in a global day of action against KKR. To date there  
> are actions planned in 100 cities in 25 countries. These actions  
> will send a loud and clear message to private equity firms like KKR  
> that we are sick and tired of a few people getting even richer by  
> reducing wages, sacking workers, avoiding tax and as a result,  
> starving public services of desperately needed funds - ruining our  
> lives and the planet in the process.
>
> In London on July 17, the Private Equity Creative Action Network  
> (PECAN) will be delivering a giant invoice to the executives of KKR  
> – an invoice that details the long overdue debt that KKR owes  
> society. To help make this action a success and to kick off a  
> summer of actions against private equity, we are inviting people to  
> participate and to get involved on the day (in particular we are  
> looking for: video artists, anti-captialist cheerleaders,  
> independent media makers, musicians, DJ's, clowns and of course -  
> activists).
>
> Take action against KKR
> on Thursday July 17 - meet 1pm at Trafalgar Square (under the lions)
>
> You may not be interested in private equity…but private equity is  
> very interested in you!
>
> In the UK, 1 in 5 private sector workers now works for a company  
> that is owned by a private equity fund.
>
> More and more companies around the world, including hundreds here  
> in the UK, are being bought up and sold off by a type of firm that  
> takes pride in their lack of transparency, ability to rack up debt,  
> cut costs and jobs and exploit the tax system so they pay little or  
> no tax.The volume of private equity deals has grown 600% in the  
> last five years. In 2006, private equity firms spent US$725 billion  
> buying out companies. Today, they can potentially mobilise more  
> than US$2 trillion – enough to buy McDonalds 38 times over!
>
> Private equity firms use investment money from pension funds and  
> wealthy individuals to buy companies with the express purpose of  
> selling them again - making as much profit as they can on both the  
> purchase and the sale - and also while they own them. By exploiting  
> the tax system, private equity firms use the debts incurred from  
> buying the company to dramatically reduce the amount of tax the  
> companies pay. At the same time, they also 'restructure' the  
> company by cutting costs, selling off assets, reducing wages and  
> conditions and sacking workers.
>
> Often we're told we must accept cuts and reductions because the  
> economy or the company is in crisis; private equity firms make  
> money by creating and 'managing' crisis. One of their ways to do  
> that is exploiting the tax system: the companies they buy up  
> suddenly stop paying taxes – but that only means more profits for  
> private equities: the workers still get the sack. Both the firms  
> and the men at their top exploit these loopholes, so that they end  
> up paying less tax than many teachers and nurses.
>
> CASE STUDY 1: The recent purchase of Boots (pharmaceutical, health  
> and beauty retailer) by the private equity firm Kohlberg, Kravis  
> and Roberts (KKR) was financed with £8 billion worth of debt, which  
> allows KKR to deduct around £500 million in 'interest expenses'  
> from the net income of Boots. Given that the taxable income for  
> Boots in 2006 was £480 million, KKR now pay no corporate taxes.  
> Before KKR bought Boots, they paid £130million in corporate tax.
>
> While the money not paid in taxes fills a few bank accounts, it is  
> sorely missed in public services like health, education and  
> housing. While the government tells us to prepare for crisis, some  
> people are ready to make money out of it. As the cost of living sky- 
> rockets, it's tight belts for us and blue skies for a few.
>
> KKR is one of the oldest and largest private equity firms and  
> currently owns well known companies such as Boots and Toys "R" Us.  
> Through its portfolio companies, KKR is effectively the second  
> largest private employer based in the United States, right behind  
> Wal-Mart. With their massive influence on the economy, KKR and  
> other private equity firms are setting the standards and conditions  
> for millions of workers around the world.
>
> CASE STUDY 2: A coalition of private equity firms, including KKR  
> took over German telecom company Tenovis in 2000. Within two years  
> of purchasing the company, they laid off 3500 of the 8000 workers  
> and forced many of the remaining workers to accept a 12.5% pay-cut  
> in exchange for the 'right' to keep working. KKR bought the company  
> for US$400 million and sold it for more than 50% more: $635 million.
>
> Contact: privateequitysucks at googlemail.com for more information
> Take action against KKR
> Thursday 17 July 2008 - meet 1pm at Trafalgar Square (under the lions)
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