Number 586, March 27, 2008

In this week's News from Brazil:

Ex-US President Clinton and Ex-World Bank President Wolfensohn partner with company accused of human rights violations 
By Beatriz Camargo

In an on-going operation that began on February 26, the mobile inspection group of the federal government found 133 workers housed in degrading conditions in the enterprises of Brenco in the cities of Campo Alegre de Goiás and Mineiros in the state of Goiás. 

Headed by the former president of Petrobras, Henri Phillipe Reischtul, Brenco (Brazil Renewable Energy Company) has, among its partners, former U.S. president Bill Clinton, former World Bank president James Wolfensohn, Steve Case (formerly of America On-Line-Time Warner), and Vinod Khosla, an Indian multi-millionaire based in the U.S. who created Sun Microsystems.

Brenco is cultivating its first crop.  Created in 2007, it possesses five functioning plants with a production capacity of 3.8 billion liters of ethanol per year.  It is building five others—all in the border region between the states of Goiás, Mato Grosso, and Mato Grosso do Sul.  The company announced on its website that it would be one of the greatest in the world in its field by 2015.

In Mineiros, the inspection team found 116 workers housed in two dorms and three houses.  All of these places were overcrowded and in horrible conditions, according to the labor inspector Jacqueline Carrijo, coordinator of the investigation.  The people were working in two Brenco plants in the municipality.  None of the housing had adequate sanitation.  In one of the houses, 15 people slept in one room.  In another, rain had soaked all of the mattresses.

All of the contracts of those housed in Mineiros will be rescinded.  “The ‘gato’ (labor contractor for the company) had promised housing in the city of Mineiros.  But, in light of the inadequate food and housing conditions, they have lost confidence in the company,” explained Jacqueline.

In Campo Alegre de Goiás, there were 17 people contracted by the company since January who were housed in irregular conditions, waiting authorization to be transported to Alto Taquari, in the state of Mato Grosso.  According to the inspection team, the workers were still obligated to pay rent to the ‘gato’.  “The housing was filthy and had rats and cockroaches.  The shower was broken and carried risk of electric shock and the rooms didn’t have any closets.  Everything was on the ground: garbage, clothes, belongings,” described the coordinator of the investigation.  She added that one of the rooms, which was only 11 square meters, was shared by 7 workers.

The 17 workers have already received their severance pay and returned home.  In a note about the case, Brenco attributed the issue to the failure in “the logistical effort of transporting and accommodating the workers” and laments the occurrence.

At this moment, the mobile team has already passed through the plants in Alto Taquari (Mato Grosso), Perolândia (Goiás), and in the two plants in Mineiros (Goiás), and has visited housing both in the rural areas and in the cities.  They still intend to inspect the work and housing conditions in the plant in Costa Rica (Mato Grosso do Sul). 

The 17 workers from Campo Alegre de Goiás came from the Northeast and were recruited in Resfriado (Goiás).  Known as João Paracatu, the Brenco officer offered work, carteira assinada (work document that guarantees a certain wage and benefits), health insurance, and housing in the city.  The workers were contracted for sugar cane work and brought to Campo Alegre de Goiás.  “Even though he was an employee of the company, the contractor maintained the old practice of recruiting based on empty promises,” laments Jacqueline Carrijo.

Some of the workers had trouble getting their wages due to a lack of proper documents and suffered from hunger.  They suffered threats from the contractor for not paying the rent.  According to the workers, complaints had been directed to the company, but the company did not take measures to address them.

Isolation
In addition to the problems with the urban housing, there were irregularities with rural housing in the Netinho 1 and Netinho 2 housing units in Alto Taquari, which housed close to 1,500 people.  According to the inspectors, the place was isolated and the construction was not yet completed: it lacked a medical clinic, refectory, clothes washing area, and other housing needs.  “There was no regular transportation or any possibility of communication. The workers were desperate to talk to their families,” explained the coordinator of the investigation.  “The housing proposal on paper is excellent.  I’ve never seen such great housing…but it’s incomplete.”

On March 6, upon returning to the site two weeks later, the team decided to shut down Netinho 1 due to its inability to adequately house workers: the rain had damaged the entire hydraulic and sanitary system, which had been recently built.  Part of the Netinho 2 housing unit was already shut down due to damaged sanitary systems.

The labor prosecutor Antonio Carlos Cavalcante, who was also part of the inspection team, emphasized that, in addition to the isolation and lack of communication, another problem Brenco didn’t address was the lack of medical care.  “We made some initial requirements, principally in the area of health.  It is necessary to have at least one ambulance and one doctor.  The company said that it had already purchased an ambulance, but it wasn’t there.”

For the team, relatively simple measures would have sufficed to correct the problems they found.  No contracts were rescinded.  However, many workers are dissatisfied and want to leave the plantation.  In these cases, indirect contract cancellations will be made.

In an official statement to the press about the investigation, Brenco said that there were no housing shut-downs.  In addition, it guarantees that the problems have already been resolved and that the installations are in perfect condition.

Plantation
The mobile group also visited the work sites of the company, where those contracted by Brenco plant sugar cane until May.  In the Laranjeiras and Quixadá 1 plantations, properties leased in order to supply the plants in Mineiros, the transport of sugar cane seedlings was shut down.  According to the labor medic and member of the mobile team Maria Cristina Toniato, the vehicles lacked special seatbelts that should be used by workers who throw the seedlings from the top of the cane trucks.  The company informed the team that they had already purchased the equipment and that the problem should be resolved in the following week.

In its memo, however, Brenco says that it finds the interdiction “odd” and argues that it possesses a “clear understanding” of the necessity of using safety equipment known as EPIs (Equipment for Individual Protection).  “Our inspectors are clearly oriented and do not permit the workers to work without the use of EPIs.  There is no authorization for any kind of work in unsafe conditions.  The company is looking into whether there have been any irregularities, for internal measures,” it added.  According to Brenco, activities are being conducted as normal.

The labor prosecutor Antonio Carlos does not intend to sign the Term of Conduct Adjustment (TAC) with Brenco.  He intends to file a public civil action suit directly with the Justice of Labor.  “The company does not have a position of negotiation.  Why would I do a TAC when it will only be disregarded?” he inquires.  He still does not know how much he is going to ask in indemnities for collective pain and suffering, but he calculates, initially, that the value will be at least R$5 million.

Source:  Repórter Brasil, March 7, 2008