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Slaves of Steel Update: |
Company Profiles
The Gerdau Group is a business organization that began operations more than 100 years ago with a nail factory in Porto Alegre (RS). Focused on iron production, it is the largest producer of long steel on the American Continent. It has foundries in Brazil, Argentina, Chile, the United States and Uruguay. It has installed capacity of US$14.4 million tons of steel per year. In 2003, it had sales of R$ 5 billion and net profit of R$ 423 million. Gerdau bought Margusa in December 2003 and increased its installed capacity for steel from 85 thousand to 200 thousand tons per year. The relation of Margusa with the charcoal workers violates the ethical principles adopted by Gerdau, which on its Internet site in the item " Relationship with suppliers says : "We only contract competent suppliers that fulfill their legal obligations and conditions, working according to the standards governing their field." Concerning Safety and Health the company maintains: "We train
our employees and require that they follow the Gerdau Group Health
and Safety Policies. For the Gerdau Group, the individual as a whole
is our first priority. " Queiroz Galvão The Queiroz Galvão Group was created in 1953 in Recife (PE), with the establishment of Construtora Queiroz Galvão, which was responsible for the construction of highways, hydroelectric dams, ports and airports. It had gross billing of R$ 1,5 billion per year. The group added to its initial construction activity - exploration and production of oil and gas, the concession of public services - in energy, sewerage and transportation - agricultural husbandry, financial operations and steel production. The profile published on its Internet site indicates that the company corporate philosophy includes: work, quality, reliability and loyalty. The company says that it has a growing concern with the environmental question and announced that the Pindaré and Simasa iron manufacturers (accused of benefiting from slave labor) generate 2,500 direct and indirect jobs. The site also highlights the conquest of the Friend of a Child Company seal issued to the two iron companies by the Abrinq Foundation. According to the company, it is a "recognition that reflects the actions undertaken to guarantee the region's children the right to citizenship, health, education and leisure". The company considers one of its principal actions of social responsibility to be the Grow Knowing project, which promotes computer access among children and adolescents from 6 - 14; and the Family, School and Community Integration Center, that, according to the company, attended some 1,000 needy children in the communities close to the company sites in 2003. Companhia Vale do Rio Doce Companhia Vale do Rio Doce was created by the federal government in 1942 in order to mine iron ore in Brazil. It was privatized in 1997 and purchased by a consortium led by CSN (Companhia Siderúrgica Nacional). It is now controlled by Valepar, the principal shareholders of which are Bradespar and Previ. World leader in iron ore production and the world's second largest producer of manganese and iron alloys , it generates more than 60 thousand direct and indirect jobs. The company closed 2003 with profits of R$ 4,509 billion. In the corporate profile, available on its Internet site, CVRD states that it operates at all of its enterprises in a socially responsible manner: "A transparent and ethical relationship, respect for local customs and cultures and promotion of improved quality of life in the communities with which it interacts is part of the social development policy of Companhia Vale do Rio Doce, a consequence of its understanding of its role as an agent for social improvements". In its code of conduct, Vale says that that standards it uses to guide its relationship with suppliers are based on transparency, fairness and ethics. It created a supplier management department, with the mission of
administrating a register of companies that provide services to
Vale. The company stated that it is committed to socio-economic
growth in the regions where it operates; protects more than a million
hectares in tropical forests and invests more than US$ 12 million
per year in education and social inclusion projects. Its project,
Citizenship Train, in Maranhão state, attends more than 370
million people. Nucor The Nucor Corporation is the United States' largest steel manufacturer, with annual sales of US$ 6.2 billion. It is also the largest recycling company in the country, with a volume of 14 million tons per day. Based in Charlotte, North Carolina, it has 9,900 employees and is a supplier to most U.S. automotive manufacturers. In 2003, Nucor sold more than 325 thousand tons of steel to this market. The company intends to double this total in 2004. It's net sales grew 46% from 1998 to 2003. Part of the company's growth strategy is to negotiate partnerships with other countries. It now has two that have been formalized, one in Brazil and the other in Australia. In Brazil, Nucor and Companhia Vale do Rio Doce are building an industrial unit to produce pig iron with lumber from reforested areas. On its Internet site, Nucor said that its relationship with its employees is based on four principles: the company should be managed in such a way that employees have an opportunity to earn in accord with productivity; workers should feel confident that, if they work properly, they will keep their jobs; the workers have the right to be treated fairly and should believe that they will be; and employees should have the opportunity to complain when they feel that they are being treated unjustly.
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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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