Instituto Observatório Social - Boletim Rede Sindical

MULTINATIONAL COMPANY
UNION NETWORKS BULLETIN

Social Observatory Institute
Nº 57 - September 14, 2004

Multinationals and NGOs
release world coffee code

Initiative seeks to improve working conditions and environmental standards in coffeee production

Companies such as Nestlé, Sara Lee, Kraft Foods and Tchibo are some of the 70 entities linked to coffee production that presented the Common Code for the Coffee Community on September 10.

The result of 18 months of work between companies and non-governmental organizations, the initiative includes basic social, environmental and economic standards for achieving greater sustainability for production, processing and sales of green coffee.

The code of conduct, which is voluntary, should result in improved living conditions in the lives of farmers and farm workers, environmental protection and greater economic efficiency. The Swissinfo newspaper reported that the companies have still not indicated when they would sign the agreement.

Upon adopting the code, coffee farmers and merchants agree to pay minimum wages, end the use of child labor, allow workers to join unions and to follow international environmental standards concerning pesticides and water pollution. Nearly 25 million people in 70 developing countries depend on coffee production. In recent years, the coffee industry has been undergoing a crisis of overproduction and falling prices.

In 2001, the world coffee market had nearly US$ 70 billion in sales. Of this total, only US$5.5 billion reached the producing countries.

The code will be implemented in pilot projects in Africa, Asia and Latin America, and in countries such as Ethiopia, Uganda, Vietnam and El Salvador, which already have programs underway.

One of the voluntary measures of greatest reach made by an industry, the code calls for the regular evaluation and compliance to be accompanied by an independent audit. In addition to the leading multinational companies that operate in the sector, the document is also signed by NGOs such as Oxfam and union federations that represent workers in the coffee industry, such as the English-based UITA. Greenpeace withdrew from the initiative because it did not agree to the use of genetically modified seeds.

If completely implemented, the code could cover nearly 80% of the world coffee market.

Sources: FT and Swissinfo.
Photo: Sérgio Vignes.

Eternit sentenced to indemnify workers

The world movement to ban asbestos earned an important court victory: the sentencing of the Eternit company to indemnify former workers for contamination. Nearly 2,500 people may be benefited. The judgement in the lower level court was issued August 26. Judge Teresa Rodrigues dos Santos, of the 18th Civil District, condemned the company to pay indemnifications -lifetime monthly pensions - and moral damages - from 50 - 300 minimum wages (R$ 13 thousand to R$78 mil).

The company was also required by the court to pay health plans for the ill. The amount of the indemnifications may reach R$500 million, according to the Brazilian Association of People Exposed to Asbestos (Abrea).

This is the largest victory of asbestos victims since the creation of Abrea in 1995. The asbestos fiber causes respiratory diseases, lung cancer and mesothelioma. The most common consequence is asbestosis - a chronic, progressive lung disease. Popularly, it is said that the lung hardens until it becomes stone. Abrae states that 80 people have died from contamination.

The public civil suit was filed in April by the Attorney General of São Paulo State, in response to a proposal presented by Eternit to its employees. The initial offer called for payment of a health plan plus an indemnification that varied from R$5 thousand to R$ 15 thousand.

Eternit announced that it would appeal the decision. The company said that the sentence "ratifies" an accord that had been reached with the ex-employees, but that "had points to be discussed in appeal".

The inspector from the Labor Ministry, Fernanda Giannasi, hopes that other actions will be judged now, such as those with Brasilit and Eterbrás.

Sources: Abrea, Valor newspaper and Época magazine.
Photo: Eternit

Shell and Basf to make monthly payment
to former contaminated worker

Shell Brasil Ltda and Basf do Brasil S.A. were condemned to pay R$ 1.722,36 per month to Nivaldo Janasco, who worked at these companies from 1977- 1995, in an anticipated award.

The decision was made by Judge Gerson Lacerda Pistori of the Regional Labor Court of the 15th region in Campinas, on August 31, and should be complied with until the final judgement in the case that Janasco filed against the multinationals for moral damages as a result of the professional illness he aquired at the workplace.

Source: CUT, from the United Chemical Workers Union of Campinas, Osasco and Vinhedo.