Teachers' Union Targets Private Equity's Role in Prison Industry
- ‘Misaligned incentives’ pose financial and humanitarian issue
- Group with 1.7 million members highlights risks in its report
American Federation of Teachers President Randi Weingarten
Photographer: Cliff Owen/AP PhotoThis article is for subscribers only.
The American Federation of Teachers is encouraging pensions to consider avoiding private equity investments in companies that profit from mass incarceration.
Investing in companies in the prison business carries financial, headline and regulatory risks, the group said in its second report on the topic, released Tuesday morning. The AFT, the country’s second-largest teachers’ union, represents 1.7 million members participating in pension funds with an estimated $3 trillion under management.