IOS


ER6 - trabalho escravo

 

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)


Slaves of Steel

Social Responsibility


Carvoeiros esperam fiscais do Grupo Móvel. Foto Sérgio Vignes/IOS

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