Post PSSI-scandal, Blackstone should ensure labor rights across its portfolio
Summary
The Private Equity Stakeholder Project (PESP) calls on Blackstone to implement enforceable labor standards across its global portfolio after the US Department of Labor found systemic child labor violations at Blackstone-owned Packers Sanitation Services Inc (PSSI). Despite initial denials, PSSI eventually reached an agreement with the United Food and Commercial Workers Union (UFCW) to protect workers' rights to organize. PESP asserts that child labor is a byproduct of broader issues like low wages and dangerous conditions, and urges Blackstone to adopt the Private Equity Labor Rights Platform and cease union-busting tactics.
Key insights
- The US Department of Labor (DOL) determined that child labor violations at Blackstone-owned Packers Sanitation Services Inc (PSSI) were not isolated incidents but were systemic, spanning eight states and indicating a corporate-wide failure across all levels, including the ignoring of internal system flags for minors.
- Following pressure from labor-rights groups and investors, including pension funds in New York, California, and South Dakota, PSSI entered an agreement with the United Food and Commercial Workers Union (UFCW) to allow workers to organize for better wages and conditions.
- The Private Equity Stakeholder Project (PESP) argues that child labor violations result from broader labor issues, specifically where dangerous working conditions and low wages lead companies to rely on subcontractors and staffing agencies that may bypass the law.
- Blackstone is identified as one of the largest global employers with approximately 500,000 employees across its portfolio; recent labor unrest includes a July strike by workers at the Aloft Los Angeles Airport and Fairfield hotels over low wages.
- PESP recommends that Blackstone adopt the Private Equity Labor Rights Platform to manage labor risks and commit to neutrality agreements that protect the right to organize without using union-busting tactics.
Cite the original document
- APA
- Private Equity Stakeholder Project (2023). Post PSSI-scandal, Blackstone should ensure labor rights across its portfolio. https://pestakeholder.org/news/post-pssi-scandal-blackstone-should-ensure-labor-rights-across-its-portfolio/
- Chicago
- Private Equity Stakeholder Project. Post PSSI-scandal, Blackstone should ensure labor rights across its portfolio. 2023. https://pestakeholder.org/news/post-pssi-scandal-blackstone-should-ensure-labor-rights-across-its-portfolio/.
- Wikipedia
- {{cite press release |author=Private Equity Stakeholder Project |title=Post PSSI-scandal, Blackstone should ensure labor rights across its portfolio |date=1 August 2023 |url=https://pestakeholder.org/news/post-pssi-scandal-blackstone-should-ensure-labor-rights-across-its-portfolio/ |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{privateequitystakeholderproject2023post, author = {{Private Equity Stakeholder Project}}, title = {{Post PSSI-scandal, Blackstone should ensure labor rights across its portfolio}}, publisher = {Private Equity Stakeholder Project}, year = {2023}, month = aug, url = {https://pestakeholder.org/news/post-pssi-scandal-blackstone-should-ensure-labor-rights-across-its-portfolio/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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