The IUF's Private Equity Buyout Watch

Union leaders issued a fresh appeal to the board to reject any bid. They said the message from the stores and distribution depots was 'Leave Sainsbury's alone and let Justin King get on with his job.'

Brian Revell, Unite national organiser for food and agriculture, said there was every fear Delta Two would act just like private equity. He warned the board that if they capitulate, the union will pursue the takeover with the Competition Commission.

"By loading debt on to Sainsbury's, Delta Two will reduce the company tax paid so, in effect, the UK will be subsiding Qatar," he said. "How can that be justified in Britain's national interest? It surely cannot."

Describing Sainsbury's as a national icon with a long history Mr. Revell said the supermarket chain was very important in the modern retail market as about 18 per cent of the nation's food supply passes through its stores. With stable employment for over 150,000 people, he also stressed the company's crucial role in employment terms.

Warning of the delicate balance between the major supermarkets being at risk, Mr. Revell said, "It is also probable that Delta Two will seek to split the property from the retail business. This will lead to higher prices and a less competitive Sainsbury's. The balance between the major supermarkets, established by the Competition Commission when Morrison's acquired Safeway, will be overturned."

Unite's 20,000 members work across Sainsbury's stores and distribution network. Mr. Revell said shop stewards representing the distribution workers were looking to renegotiate severance terms amidst fears of their work being outsourced.

SOURCE: http://www.tgwu.org.uk/Templates/News.asp?NodeID=93627&int1stParentNodeID=42438&int2ndParentNodeID=42438&Action=Display

ENDS

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