Kelly Ayotte’s oversight failures blamed for child labor abuses at Blackstone-backed company

Republican gubernatorial candidate Kelly Ayotte is facing renewed attention for her role on the board of directors of Blackstone, a private equity giant, after a Blackstone-owned company was found to have employed over 100 children as young as 13 years old in violation of US labor laws in February of last year.

Three of the children suffered injuries working at the plant, including one who suffered caustic burns from cleaning chemicals.

Ayotte has served on Blackstone’s audit committee since 2019, a position that made her responsible for legal and regulatory compliance. During that time, Blackstone-owned Packers Sanitation Services Inc. (PSSI) was fined $1.5 million by the US Department of Labor for employing 102 children as young as 13 years old to work hazardous, overnight shifts cleaning meatpacking equipment.

The incident raises concerns about the level of oversight exercised by Ayotte and the audit committee during her tenure. The crisis triggered a piece by the New York Times Editorial Board titled “The Dangerous Race to Put More Children to Work” .

As a member of the audit committee, Ayotte was tasked with overseeing Blackstone’s compliance with legal and regulatory requirements, including child labor laws. However, in the aftermath of the PSSI scandal, Blackstone officials attributed the violations to shortcomings in the firm’s compliance and audit functions—areas directly overseen by Ayotte’s committee.

… New York State Comptroller Thomas DiNapoli called the child labor practices “abhorrent” and demanded an explanation from Blackstone CEO Stephen Schwarzman and Global Head of Private Equity Joe Baratta.

Both Schwarzman and Baratta have donated to Ayotte’s past Senate campaigns.

This incident is not the first time Ayotte has been accused of putting children in harm’s way while leading a large organization.

 

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Article URL : https://granitepostnews.com/2024/09/24/kelly-ayottes-oversight-failures-blamed-for-child-labor-abuses-at-blackstone-backed-company/