Not sure that I fully understand but if the profit has been made as the result of a loan then maybe the profit should be used to pay off the loan, before being given to shareholders. As I understand it, a lot of businesses borrow money to avoid paying taxes and iirc that is how Musk bought Twitter. He borrowed against his Tesla shares to avoid paying taxes had he sold them to fund the deal.
Say for example you get a loan for 200k over the next 10 years to buy machinery that will enable you to produce more and employ 10 more staff. The loan repayments are a lot smaller than the outstanding debt, so you will make a profit and be able to pay the extra staff. The loan is a debt but the loan facility enabled you to get the machinery to grow. You couldnt save up 200k to buy the machinery.
Disappointed by the allegations against Len McClusky. I am not sure why a union should be building a hotel with it's members money but the scale of the loss is staggering. On top of this, the hospitality he received from the contractor is shocking but I think will prove to be small beer in the scheme of things if the BBC investigation is correct.
Not to surprised tbh. McCluskey is an egotist and Unite was a vehicle for his personal ambition. My old Union , the Communication Manager’s Association (CMA) was absorbed into Unite during their period of rapid expansion, with minimal consultation of members. It felt very much at the time, as though McCluskey was empire building on the backs of thousands of disparate Union members. I never felt the benefit of being part of this Super Union he was instrumental in building, and I know many other members felt the same way. I’m also not overly surprised to witness his successor, Sharon Graham, failing to secure a deal for her members in Birmingham.
