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Slaves of Steel
Worse than Cattle
Ineffective Action
Environmental Degradation
Modern Times
Company Profiles
Company responses
Social Responsibility
Update:
Companies
to sign agreement against slave labor
(August 13, 2004)
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Slaves of Steel
Ineffective Action
Until
a short time ago, the charcoal operations did not make distinctions
between adult and child labor. Now, the iron companies panic when
they hear of minors younger than 18 at the work sites. Simasa, holds
the Company Friend of a Child Seal issued by the Abrinq Foundation,
a respected non-governmental organization.
When questioned about the contradiction of having the Abrinq seal
and being accused of involvement with slave labor, Simasa´s
administrative manager Marcelo Almeida responded: "We do not
have information that the workers in the charcoal plants live in
these conditions". He maintained that Simasa has nothing to
do with what happens in these places: "We only buy the charcoal.
They are suppliers of raw material and this is the only relationship
that we have with these charcoal operations". Later, one of
the directors of Queiroz Galvão and Simasa President Director
André de Oliveira Câncio admitted the existence of
the problems in the productive chain and promised solutions.
Almeida´s affirmations do not coincide with the norms that
Simasa needed to follow to win the Abrinq seal. The seal assures
the inexistence of child labor at all the links of the productive
chain. The workers themselves report that the inspectors from the
iron companies visit the charcoal oeprations to check for the presence
of children. "If they find children, even if it's the child
of the cook, they don't buy more charcoal", said a charcoal
worker during an inspection from the Mobile Inspection Group in
June, when Simasa was cited once again. That is, there is selective
and isolated inspection by the part of the iron manufacturer. The
company inspectors, as dozens of reports from the Mobile Group indicate,
close their eyes to slave labor, to the terrible sanitary conditions,
and limit their inspection to the presence of children.
The allegation that the charcoal producers are only suppliers and
do not have any ties to the iron manufacturer is not accepted by
the Attorney General for Labor or the Ministry of Labor. These entities
understand that the iron manufacturers are directly responsible
for everything that happens at these locations. This is because
they build the plants used to burn the wood to produce charcoal.
The iron manufacturers also demand exclusivity in the delivery of
charcoal. "If by chance they find out that we deliver to another,
they come here and take down the plant", explained another
charcoal worker.
Report
In his March report, Labor Prosecutor Luercy Lino Lopes wrote that
the entire production of charcoal is conducted in the exclusive
interest of the region's iron manufacturers. According to Lopes,
they are the plants that make viable the establishment of the charcoal
furnaces, financing their construction and the construction of lodging
- which usually is never built. At another point of the document,
he writes:
"The iron manufacturers use sub-contractors, people with no
economic-financial independence to serve as a front for the operation
(nearly always charcoal workers), who for all purposes, are raised
to the condition of 'employers' of the workers and 'owners' of the
charcoal plants. They are mere intermediaries or 'fronts' according
to what could be clearly perceived".
The iron companies pay the fines set by the Ministry of Labor and
not the charcoal producers. Transportation between the charcoal
and iron furnaces is not conducted in trucks of the iron company
but in those owned by the administrators of the charcoal furnaces.
This service is one of the worst activities on the labor front,
because the loaders need to climb steep ramps with sacks weighing
more than 50 kilos.

Companies
AThe companies responded in different ways to the charges that
they have slave labor in their productive chains. Gerdau sent a
note by e-mail from its press office, indicating that the violations
were practiced by service providers (charcoal producers) and that
the company considers itself to be only partially responsible for
the problem.
Queiroz Galvão, through the director president of Simasa,
André de Oliveira Câncio, adopted an attitude that
is not very common among the companies: it admitted there is a problem
and promised to undertake a number of activities by the end of the
year to avoid new complaints. In Brazil, it is common for many companies
to distance themselves from responsibility - passing it on to suppliers
- and treat the problem as an isolated incident and discredit the
complainant.
Vale do Rio Doce responded that it sells iron ore and logistics
to the steel companies according to market needs, because it is
the only supplier of this raw material in Brazil. It also emphasized
that it participates in a campaign, in partnership with the Superior
Labor Court, against the use of slave labor, which reinforces its
stance in relation to social responsibility. Vale´s press
relations manager Fernando Thompson considered the initiatives taken
to remove slave labor from the production chain to be extremely
important.
Nucor, through its executive vice president John Ferriola, maintained
that it does not buy pig iron directly from the companies mentioned
in the report. It also said that it was not aware of the accusations
and opposes the use of slave labor. According to Ferriola, the price
that the company pays for Brazilian pig iron is competitive with
all the other sources in various countries.


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This report is part of the publication "Observatório
Social Em Revista" - # 6 - June 2004 - Florianópolis,
Brazil
English version: Jeffrey Hoff
Published by Observatório
Social
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