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Financialization, new investment funds, and weakened labour: the case of the UK

Pendleton, A.; Gospel, H.

Financialization, new investment funds, and weakened labour: the case of the UK Thumbnail


Authors

A. Pendleton

H. Gospel



Contributors

H. Gospel
Editor

A. Pendleton dxkf42@durham.ac.uk
Editor

S. Vitols
Editor

Abstract

The chapter shows that the UK has the highest levels of PE, HF, and SWF activity in Europe. This is explained primarily by the permissive nature of UK financial and securities regulation and, to a lesser extent, of labour regulation. Fund activity grew significantly up to 2007 and then declined in the case of PE and HFs; since 2010, there has been a recovery in PE and HF activity. It is rare for NIFs to consult with labour before and during the acquisition process. NIF intervention and acquisition does create some turbulence in employment, with initial job loss, though also with later job creation. Evidence on the effect on industrial relations is limited, but suggests that in most cases NIFs do not make major changes. Since the recession there have been several high profile cases of PE having a negative effect on employment systems.

Citation

Pendleton, A., & Gospel, H. (2014). Financialization, new investment funds, and weakened labour: the case of the UK. In H. Gospel, A. Pendleton, & S. Vitols (Eds.), Financialization, new investment funds, and labour : an international comparison (86-114). Oxford University Press. https://doi.org/10.1093/acprof%3Aoso/9780199653584.003.0003

Online Publication Date Feb 6, 2014
Publication Date Feb 6, 2014
Deposit Date Feb 3, 2015
Publicly Available Date Feb 19, 2015
Publisher Oxford University Press
Pages 86-114
Book Title Financialization, new investment funds, and labour : an international comparison.
Chapter Number 3
DOI https://doi.org/10.1093/acprof%3Aoso/9780199653584.003.0003
Keywords United Kingdom, Financialization, New investment funds, Labour, Employment relations, Industrial relations, Work, Private equity, Hedge funds, Sovereign wealth funds.
Public URL https://durham-repository.worktribe.com/output/1647060

Files

Accepted Book Chapter (304 Kb)
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Copyright Statement
This is a draft of a chapter that was accepted for publication by Oxford University Press in the book 'Financialization, new investment funds, and labour : an international comparison' edited by Howard Gospel, Andrew Pendleton, and Sigurt Vitols and published in 2014.




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