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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
Social Responsibility

Workers wait for the staff of the Mobile Inspection
Group.
Foto Sérgio Vignes/IOS
In recent years, various documents have become references
used in the evaluation of corporate social responsibility. Nevertheless,
many actions proclaimed to be socially responsible have more to
do with philanthropy or marketing strategies than with concrete
and long-lasting activities that involve a business itself and its
productive chain.
Slave labor fits into a basic issue of corporate social responsibility:
a socially responsible company should assume a public commitment
to decent social and environmental conditions along the production
chain. It should create criteria for its suppliers, prepared with
the involvement of social actors. It should discredit violators,
that is, those who systematically disrespect basic labor rights
and degrade the environment. If a company does not do so, they become
accomplices. Slave labor violates the Universal Declaration of Human
Rights, the Declaration of Basic Labor Rights of the International
Labor Organization (ILO) and the Guidelines for Multinationals of
the Organization for Economic Cooperation and Development (OECD).
Financial institutions, above all pension funds and banks such
as BNDES (Brazil's National Economic and Social Development Bank)
should not finance companies that use slave or degrading labor in
their production process.
Another important reference is the Global Compact, an initiative
of the United Nations Organization that is currently popular among
socially responsible companies. It seeks voluntary compliance and
mobilization of the business community for the promotion of basic
values in the area of human rights, labor and the environment. It
has the participation of companies, unions, non-governmental organizations
and various UN agencies. More than one thousand companies are signatories
of the Global Compact, that encourages the organizations to incorporate
10 basic principles. Of these, three are directly linked to responsibility
along the productive chain:
- Support and respect protection of human rights within its sphere
of influence;
- Assure that its own companies are not accomplices to human rights
abuses;
- Eliminate all forms of forced and compulsory labor.
None of the companies cited here is a signatory to the Global Compact.
Unfortunately, one of the factors that affects the credibility of
this initiative is that even many companies that adhere to the agreement's
principles do not monitor compliance. In practice, it has been found
that these principles are not being respected.
Another reference is the Instituto Ethos de Empresas e Responsabilidade
Social [Ethos Institute of Companies and Social Responsibility].
In its Selection Criteria and Supplier Evaluation Ethos said:
"The company should provide incentives to its suppliers and
partners for them to adhere to the agreements that they adopt in
relation to society. They should also use social responsibility
criteria in the choice of suppliers and demand, for example, certain
standards of conduct in relation to workers or the environment ".
Slave labor, according to Ethos, is a standard of conduct completely
unacceptable for a supplier. "Commitment to the quality of
the productive chain is extremely important to strengthen corporate
social responsibility", said the Institute's public policy
assessor Caio Magri. "It is essential that a company committed
to social responsibility does not accept slave labor along its productive
chain". For Magri, companies need to know their suppliers very
well and adopt standards of relationships based on respect for human
rights. "It is very important to unveil and denounce a productive
chain where there is slave labor", he said.

Home state of the rescued workers
Proposals
National Confederation of Metalworkers Director Fernando Lopes,
a Gerdau employee, agreed that the problem begins at the charcoal
operations linked to the iron companies that use slave labor in
some cases and degrading labor in others. "It is important
to have stricter control, a concrete position of social responsibility
and that the iron company
knows from whom it is buying charcoal", he said.
Lopes proposed that the iron companies and unions form a partnership
to inspect the work at the charcoal plants. "The first step
would be the formation of a commission to act directly to control
the problem". Another idea is to steer discussion of the issue
to municipal Labor and Income Commissions, to which can be presented
joint proposals from civil society, unions and companies. "This
is a suitable space to begin a conversation. Either concrete tools
are created or the problem will not be resolved", he said.
One of the unionist's concerns resides in the eventual sanctions
that can be imposed by international buyers of pig iron. "In
today's globalized market, any pretext can be used to bar a product
or apply sanctions, which would be very bad for the country".
On the other hand, he said, the problem cannot be simply swept under
the carpet: "Transparency is needed, a joining of forces. It
is a serious social problem, society and markets need to take a
clear position about slave labor".
In the relationship between the charcoal and iron manufacturers,
there are so many irregularities that the right to unionization
is a theme unknown to charcoal workers. The reporting team did not
detect any union activity among these workers. ILO Convention 98,
ratified by Brazil in 1952, protects workers from acts that threaten
freedom of association and calls for support for collective labor
negotiations. One possible position is that the collective labor
accord reached by the union in the metallurgical industries include
clauses that apply to the charcoal workers. This issue can be dealt
with in a plan of action between the iron companies and unions for
the inspection of charcoal operations.
Slave labor in the steel production chain shows how the free market
disconsiders the social costs of industrial production. At the beginning
of the chain are workers who do not have drinking water, bathrooms,
medical assistance or freedom. The wealth created by these modern-day
serfs is appropriated by the modern slavocrats who exploit their
dignity. Large corporations close their eyes to this crime - with
risks to their image and even their business - and profit from producing
the most modern materials. These in turn are purchased by globalized
consumers, but those which are never well informed about the source
of their products.
This vicious circle is not inexorable, it is a historic circumstance
that can be changed. Prevention, repression, rehabilitation, a struggle
against impunity, social investments, international trade with fair
rules, social pressure and responsible attitudes from companies
are the essential steps for change.
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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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