’s poultry industry JUNE î 2016

In this second edition of Monitor – a newsletter that periodically publishes Repórter Brasil’s studies on economy sectors and production chains, we look into the billion dollar poultry industry, which grinds the rights of farmers and workers throughout the country Monitor #2 ISBN 978-85-61252-24-3

_____ STAFF

Editor Marcel Gomes

“Brazil’s poultry industry”

Research and writing André Campos

Photos André Campos / Repórter Brasil (p.11) MPT/RS (foto de capa, p.15 e p.16) Arquivo Repórter Brasil (p.5, p.9 e p.11)

Spread sheets source United States Department of Agriculture (USDA) / Avisite (p.3, p.4, p.5) National Social Security Institute (INSS) (p.13) Labor Unions (p.14) Ministry of Labor and Social Security (MTPS) and Labor Prosecutor’s Office (MPT) (p.15)

Layout Gustavo Monteiro

This publication was supported by funds from the Sigrid Rausing Trust and the European Union. Its content is licensed under Creative Commons 2.0 – reproduction is allowed as long as the source is cited.

______Repórter Brasil – Organization for Communication and Social Projects

General Coordinator Leonardo Sakamoto

Executive Secretary Marcel Gomes

Financial Coordinator Fabiana Garcia

Assistant Coordinator Marília Ramos

Address: 169 Bruxelas St., São Paulo - SP - Brazil Postal Code 01259-020

Contact us [email protected] www.facebook.com/ONGReporterBrasil @reporterb ((55 11) 2506-6570 (55 11) 2506-6562 (55 11) 2506-6576 (55 11) 2506-6574 R #2 MON I TO industry poultry Brazil’s

• 2 • An overview of the industry

SUMMARY

1. About four out of every eleven kilograms of poultry exported in the world come from Brazil

2. The economic crisis has helped the industry by encouraging the replacement of more expensive red meat with white meat in Brazilians’ diet

3. The poultry production chain creates 3.5 million direct and indirect jobs

4. Two Brazilian multinational companies – JBS and BRF – account for almost 50% of poultry slaughtered in the coun- try and 70% of poultry exports

5. BRF owns Plusfood, which has manufacturing plants in England and the Netherlands; JBS owns UK-based Moy Park and US-based Pilgrim’s

n 2015, Brazil overtook China as WORLD'S LARGEST PRODUCERS (thousands of tons) the world’s second largest poultry Iproducer, behind only the United YEAR VARIANCE States. Figures provided by the Brazil- 2014 2015 2016 14/15 (%) 15/16 (%) ian Institute of Geography and Statis- EUA 17,299 17,966 18,365 3.86 2.22 tics (Instituto Brasileiro de Geografia e Brazil 12,692 13,080 13,480 3.06 3.06 Estatística, IBGE) indicate that Brazil- China 13,000 13,025 13,100 0.19 0.58 ian production reached 13.14 million tons last year – 5.4% over 2014 and the EU 10,330 10,600 10,845 2.61 2.31 highest level ever recorded in history. India 3,725 3,900 4,200 4.70 7.69 Nothing less than 5.8 billion hens were Russia 3,260 3,550 3,650 8.90 2.82 slaughtered in the country in 2015. Mexico 3,025 3,100 3,160 2.48 1.94 Argentina 2,050 2,060 2,100 0.49 1.94 The figures from 2015 reflect Turkey 1,956 1,980 1,990 1.23 0.51 the increasing economic importance Thailand 1,570 1,650 1,650 5.10 0.00 of that industry. In the last 15 years, Others 17,642 17,033 16,796 -3.45 -1.39 it has doubled in size, expanded ex- Total 86,549 87,944 89,336 1.61% 1.58% ports fourfold, and increased its share in Brazil’s trade balance. According to statistics from the federal government, mestic Product (GDP) to drop by 3.8% 2016, but at a slow pace”. Despite the fresh poultry came fourth among the in 2015 – a scenario that should not importance of exports to the industry, country’s exports Last year, after soy- change in 2016. As Brazilian economy the domestic market absorbs most of bean, iron ore, and oil. shrinks, the United States Department the output – about 68%, according to of Agriculture (USDA), the leading the Brazilian Association of Animal Despite producing fewer chick- global agency for agricultural statis- Protein (Associação Brasileira de Pro- ens than the US, Brazil has been the first tics, foresees a 3% increase in locally teína Animal, ABPA). country in the international trade of the produced poultry for this year – an- product for some time now. About four other production record for Brazil’s In addition, devaluation of out of every eleven kilograms exported poultry industry. Brazilian currency (real, R$) against in the world come from the country. the US dollar increased the competi- Brazilian poultry is now found in 150 To some extent, the crisis has tiveness of Brazilian poultry abroad, countries from all continents. been an ally of the industry by en- helping to offset the fall in the price of couraging the replacement of more the product in global markets. In Janu- These figures show an indus- expensive red meat with white meat ary 2016, for instance, data from Bra- try that goes against the country’s in Brazilians’ diet. According to the zil’s Secretariat of Foreign Trade (Se- crisis and grows considerably amid a USDA report published in March, “this cretaria de Comércio Exterior, Secex) recession that caused the Gross Do- situation is expected to continue in show that Brazilian poultry exports

• 3 • yielded US$ 451.1 million – 8.8% less WORLD'S LARGEST EXPORTERS (thousands of tons) than 2015. However, when convert- ed into real, that figure increased by YEAR VARIANCE 40.4% during that period. Similarly, 2014 2015 2016 14/15 (%) 15/16 (%) the volume exported also increased by Brazil 3,558 3,740 3,880 5.12 3.74 14.1% compared to January last year. USA 3,312 2,990 3,221 -9.72 7.73 EU 1,133 1,150 1,190 1.50 3.48 National champions Thailand 546 580 570 6.23 -1.72 China 430 395 375 -8.14 -5.06 ccording to ABPA, the poultry Turkey 379 340 360 -10.29 5.88 production chain accounts for Argentina 278 200 225 -28.06 12.50 Afive million direct and indirect Ukraine 167 180 190 7.78 5.56 jobs – nothing less than 5% of Bra- Canada 137 130 140 -5.11 7.69 zil’s employed population. The orga- Belarus 113 120 100 6.19 -16.67 nization reports that slaughterhouses Others 417 406 437 -2.64 7.64 alone employ 400,000 workers. The Total 10,470 10,231 10,688 -2.28% 4.47% data take into account not only poul- try but also pork – which absorbs a smaller portion. WORLD'S LARGEST CONSUMERS (thousands of tons)

Brazil’s Southern region con- YEAR VARIANCE centrates most of its poultry slaugh- 2014 2015 2016 14/15 (%) 15/16 (%) ter – 59.6% in 2015 according to IBGE USA 14,03 14,99 15,23 6.85 1.58 – as well as poultry farms – 63.5% in China 12,83 12,88 13,00 0.39 0.82 2014 according to ABPA. There are ap- EU 9,90 10,16 10,37 2.56 2.12 proximately 180,000 farms dedicated Brazil 9,13 9,34 9,60 2.27 2.78 to the activity. India 3,71 3,89 4,19 4.74 7.73 Poultry raised by such large Mexico 3,73 3,85 3,92 3.08 1.79 number of small and medium Brazil- Russia 3,67 3,77 3,73 2.69 1.06 ian producers are supplied mainly Japan 2,22 2,24 2,25 0.85 0.22 to two major Brazilian multinational Argentina 1,77 1,86 1,87 4.96 0.81 companies. According to the ranking South Africa 1,57 1,63 1,66 4.01 1.83 produced by Avisite – the main web- Indonesia 1,56 1,62 1,64 3.83 0.92 site for information on poultry in Bra- Others 20,77 20,01 19,89 -3.70 -0.56 zil – together, BRF and JBS slaughtered Total 84,852 86,276 87,376 1,56% 1,27% 2.6 billion chickens in 2014, almost half the country’s total figure. When it comes to exports, concentration is nal de Desenvolvimento Econômico BRF and JBS are two major ex- even higher. Both companies account- e Social, BNDES), which acquired the amples of the “national champions” ed for about 70% of poultry shipments new company’s shares. policy that guided the actions of BNDES in 2013, according to the Brazilian – the largest investment bank in Brazil Poultry Association (União Brasileira JBS had also received equity in- – during the second Lula administra- de Avicultura, Ubabef). vestments and major loans from BNDES tion and President Dilma Rousseff’s in the past decade, and those funds were first term in office. Its core aimwas The companies’ control over largely used to purchase companies in to strengthen Brazilian multinationals poultry processing and trade is the re- the poultry industry. The bank current- that could take global leadership posi- sult of an economic concentration pro- ly holds 24% of the company’s shares. tions in their respective segments. cess started in the late 2000s, for which JBS’s turnover jumped from R$ 3.5 bil- participation of the Brazilian State was lion (US$ 1 billion) in 2004 – when it decisive. In 2009, Sadia – then the larg- still focused only on beef – to R$ 120 Internationalization est poultry processor in Brazil – faced billion (US$ 34 billion) in 2014, when serious economic difficulties when it became the largest private company he Middle East and Asia are the it announced its merger with its main in Brazil in terms of sales. Its expan- two main markets for Brazil- historical rival Perdigão. The deal gave sion in poultry processing took place Tian poultry, and they purchased rise to BRF in a transaction sponsored primarily through the purchase and 63% of exports in 2014. They were fol- by pension funds from state enterpris- leasing of other local companies such lowed by Africa (14%), the European es and the National Bank for Economic as Seara, Frangosul – which belonging Union (10%), the Americas (9%), and and Social Development (Banco Nacio- to French company Doux – and the US the non-EU European market (4%).

R #2 MON I TO industry poultry Brazil’s subsidiary of Brazil’s Tyson. Fresh poultry is the main product ex-

• 4 • ported to the largest markets, with 89% WORLD'S LARGEST IMPORTERS (thousands of tons) of Brazilian exports. YEAR VARIANCE However, the scenario changes 2014 2015 2016 14/15 (%) 15/16 (%) when it comes to the European Union. Japan 888 900 875 1.35 -2.78 Processed and salted poultry – prod- Saudi Arabia 775 900 850 16.13 -5.56 ucts with higher value-added – account Mexico 722 760 770 5.26 1.32 for 76% of Brazilian sales to the region. That increases the relative importance EU 709 710 720 0.14 1.41 of the EU in the trade balance of the Iraq 722 690 710 -4.43 2.90 Brazilian poultry sector. The Nether- South Africa 369 420 440 13.82 4.76 lands (47%), Germany (20%) and the UK Hong Kong 299 360 380 20.40 5.56 (19%) are the main markets for Brazilian Angola 365 240 260 -34.25 8.33 poultry to enter the European Union. China 260 250 260 3.85 4.00 Cuba 186 210 235 12.90 11.90 In recent years, besides in- Others 3,598 3,199 3,193 -11.09 -0.19 creasing their operations in Brazil, BRF Total 8,893 8,639 8,639 -2.86% 0.63% and JBS have also carried out major ex- pansion in their industrial operations in other countries. BRF focused on Ar- plants in England and the Netherlands. land, France and the Netherlands. Just gentina, where the company has now Through Plusfood – which traditionally as Plusfood, Moy Park also has a his- seven plants – processing units for uses Brazilian poultry in its processing tory of processing Brazilian poultry in poultry, margarine, cheese, and beef. In plants – BRF sells its products at major its factories. 2014, it also opened a processed food local supermarket chains. industry in Abu Dhabi, focused on the JBS is also one of the leaders Middle Eastern market, which is al- JBS is also present in the Eu- in the US poultry market, where it has ready one of the main destinations for ropean poultry market through Moy owned Pilgrim’s since 2009 and is the BRF’s Brazilian exports. Park. The UK-based company is the second largest company in the local largest poultry processor in Northern poultry processing market. In addition, In Europe, it owns Plusfood, Ireland and it also has plants in other it also has poultry production units in a poultry processing company with European countries, including Eng- Mexico and Puerto Rico.

• 5 • Integrated for more rights

SUMMARY

1. The industry’s supply chain is based on the “integration system”, especially in southern Brazil

2. Slaughter companies provide inputs in advance, and producers are obliged to trade ready poultry exclusively with the company

3. Poultry farmers protest against obligations and payment criteria, but the industry says that most of them are happy with the arrangement

4. Bill 6459/13, approved in March 2016 by the Chamber of Deputies, seeks to define obligations of both slaughter companies and producers

5. The National Confederation of Agricultural Workers (CONTAG) supports the new legislation, but the association of integrated farmers claims that it does not solve payment issues

n Brazil, the relationship between the Permanent sources of dissatis- than R$ 0.25”, Luiz Nei Bez said at the main poultry slaughter companies faction include not only quality crite- time. He is the chairman of the Associa- Iand 180,000 poultry farmers is not ria but also prices imposed on farm- tion of Slaughter Poultry Producers of restricted to purchase and sale. The ers. The weight of the chickens and the Dois Vizinhos and Region (Produtores business is governed by the “integra- amount of feed they consume are the de Aves de Corte de Dois Vizinhos e tion system” through which companies main factors of the complex formula Região, Asspac). Also in 2014, a similar provide farmers with chicks, animal to calculate producers’ payment – the demonstration was organized by JBS’s feed, and medicines in advance. In re- number of animals slaughtered and integrated farmers in , SC. turn, farmers have to trade ready poul- the amount of drugs used are also rel- try for slaughter exclusively with the evant. In addition, there is some sort of The integration system began to company that supplied them with raw competition among integrated farmers be implemented in Brazil in the 1960s, material and will be paid after produc- because their productivity compared inspired by similar practices existing in tion costs are discounted. to other suppliers is also taken into ac- the United States, where complaints and count in calculations. tensions also involve integrated farm- In this uneven marriage be- ers and slaughter companies. In 2015, a tween large and small companies, That math is considered ob- notorious case in that country involved industrial conglomerates have huge scure by family farmers and the orga- Pilgrim’s Pride, one of the largest US bargaining power to impose contracts nizations representing them. In prac- poultry industries, which has belonged that include their quality criteria such tice, the vast majority understand little to JBS since 2009. Some 300,000 ani- as the size of the aviaries, the final of the payment criteria. José Müeller, mals were mysteriously killed in poul- weight of animals for slaughter, and a poultry farmer in southern Brazil, try houses belonging to the company’s management techniques to be adopt- says: “We have to trust the company for suppliers in a South Carolina county. ed. Those criteria often require high everything. As integrated farmers, we Investigators in charge of the case investments from “partners” in their make a delivery of poultry and we don’t pointed out a former integrated farmer properties. Moreover, the growing know how much we will be paid”. of Pilgrim’s Pride as the prime suspect. concentration of poultry slaughtering The reason would be his dissatisfaction industries in Brazil makes the situ- The result is a high level of debt with the company after not having his ation of poultry farmers even more faced by many farmers, who report contract renewed due to allegedly un- difficult by reducing competition be- situations in which what they are paid satisfactory productivity. tween buyers. The two largest com- does not even cover their costs. In De- panies in the industry – BRF and JBS, cember 2014, more than 500 farmers It is in this context that the which account for almost half of Bra- protested against that in front of two Small Farmers Movement (Movimento zil’s slaughtering and approximately BRF factories in Francisco Beltrão and dos Pequenos Agricultores, MPA), an 70% of exports – have their business Dois Vizinhos, state of Paraná. “Our organization that is present in several models based on integration. production cost is R$ 0.33 per chicken Brazilian states, advocates the need and some farmers are not paid more for public policies to create alterna- R #2 MON I TO industry poultry Brazil’s

• 6 • POULTRY CYCLE

Farmer and company sign a contract in order to begin the “integration system”

Companies provide farmers with chicks, animal feed and medicines in advance

Companies also o er technical assistance, buy the animals and respond by the transportation

After discounting costs, companies pay the farmer

tives to the integration system, which The Integration Bill rity that characterizes those contracts, binds family farming to large industrial which are often challenged in Court. conglomerates. “We need to discuss razil is currently discussing new One of its main points is the creation the issue of small slaughterhouses legislation to regulate the rela- of collective bargaining instances re- and health surveillance, because our Btionship between the industry garding integrated farmers’ payment – people have no place to slaughter the and integrated farmers. In March 2016, which are supposed to make that con- animals”, adds Leandro de Freitas, one the Chamber of Deputies approved bill troversial topic more transparent. of the MPA leaders. “BNDES funds 6459/13, which sets out obligations large slaughter companies but not the and responsibilities of both parties to According to the proposition, small ones”. Cooperatives connected to be included in their contracts. The mat- in order to be valid, integration agree- MPA have started small projects for the ter still needs to be confirmed by the ments must establish clear criteria on production of derivatives of sugarcane Senate and signed by the Executive. various issues – for example, quality such as ethanol and molasses. standards of inputs provided by the The so-called “Integration Bill” industry; formulas to measure produc- is intended to face the legal insecu- tion efficiency; and sanctions for non-

brF was also asked for a com- JBS, in turn, said that “it has a What the ment on the matter of disagreements positive feedback on poultry farmers’ related to the integration model: “BRF satisfaction, considering its individual !industry says has about 13,000 integrated farmers relationship with those integrated that account for a significant portion farmers and the significant number or the Brazilian Association of of Brazil’s domestic production. In of them who come to the company Animal Protein (ABPA), which rep- such a wide universe, occasional dis- with proposals to expand their busi- Fresents the country’s slaughter- agreements are natural, but BRF deals ness”. In addition, the company re- ing industry, most poultry farmers are with all these situations with respect, ports having “absolutely transparent” happy with integration. “We have con- professionalism and always seeking payment remuneration to integrated ducted an informal survey and found to strengthen the integration model farmers and considers those policies that 90% of integrated poultry farmers that, for decades, has proved to be “more than satisfactory”. It also says are happy to a greater or lesser extent”, essential to the development of Bra- it is not aware of farmers that are not the organization’s president Francisco zilian agribusiness, both for produc- keeping their commitments in its pro- Turra told the Repórter Brasil. ers and the industry”. duction chain.

• 7 • compliance or termination. In addition, The bill is also supported by the sociation of Integrated Poultry Farm- it provides for the creation of forums National Confederation of Agricultural ers (Associação Brasileira dos Avicul- and parity-based committees including Workers (CONTAG), the largest orga- tores Integrados, Avai) Fernando Cezar representatives of integrator industries nization representing small farmers in Ribeiro said in a public hearing on the and integrated farmers, which should Brazil. “So far, the integration activ- bill last year. establish methodologies and bench- ity is governed only by the Civil Code. marks for paying poultry farmers, pig We see this as a major step for family In this context, he argues that farmers, tobacco growers, and other farming in Brazil and a great time for such benchmarks should establish a segments where there is integration. production organization”, says the or- policy of minimum prices to be paid ganization’s environment secretary to producers. The original draft even The approval of the bill in the Antoninho Rovaris. CONTAG claims to mentioned explicitly that integrated Chamber of Deputies generated dem- have suggested 16 amendments to the farmers could not be paid less than onstrations of optimism on both sides. original bill, all of which were accepted their production costs, but that has It was hailed, for example, by the Bra- in agreement with representatives of been removed from the bill approved zilian Association of Animal Protein the industry and agribusiness. by the House. (ABPA). “It is a victory of Brazilian agribusiness. Thanks to this system, we The bill does not specify the The Senate can include chang- gained competitiveness, we achieved criteria for establishing benchmark es about the remuneration of produc- standardization, and we expanded our values for paying integrated farmers, ers, but it isn’t too much presumable. international participation, therefore which raises concern among their rep- If the senators just confirm the writing becoming the world’s leader in poultry resentatives. “There is currently high sent by the deputies, forums and par- shipments. This shows the importance concentration of companies that buy ity-based committees should establish of creating a legal framework that sets poultry farmers’ production, and this methodologies and benchmarks for clear rules on that relationship”, said reflects in systematic reduction of paying poultry farmers. ABPA president Francisco Turra. their payment”, the president of the As-

“The farmer is always in debt”

e’ve been working on it’s all on us. The farmer must We have three aviaries and this for 26 years. I prac- keep the sheds perfect, according to they are all closed. It is the first time “Wtically grew up in the a standard that the company chang- we stop in 26 years. Working on it no poultry house. I started with my fa- es all the time. I have colleagues who longer pays off. ther. Some 20 years ago the agricul- bought equipment that didn’t even tural companies settled in our region get to use. To give you an idea: we use One thing that struck me in and they came to us for partnership. a nebulizer to cool the aviary environ- my life as a farmer was my mother’ Working with poultry became fash- ment, and someone in the company situation. She used to make our food. ionable at the time; it was a fever in thought it was better to change the We had a milk cow, rustic chicken, the region. And it was really profitable. standard pipe system for that nebu- and pigs... Food was always abundant lizer. That cost 2-3 thousand reais to on our table. But then the company but the poultry industry has each farmer. And after a while they came and began to take this right been through many changes. New realized that the change didn’t have from my mother. It took the rustic requirements came, and I believe the effect they wanted and it was no chickens away because, according they were necessary for the company longer needed. Those who are the to them, they harmed the poultry in to sell its meat, to export. Everyone first to do what they ask often end up the shed. started talking of ISOs, we took part in suffering most. meetings about it with the company. i also look at my mother’s It was necessary to adapt, to develop poultry farmers can never pay feelings. She’d have eggs at home new technologies within the poultry off their debts to the banks. When a her whole life, and then she had to farm, investments to obtain ISOs. And new technology arrives or they need star going to the market to buy eggs. this influenced our spending. to change the sheds, they have no The company influenced inside our cash for that. So they’re always in home, not only our work. It went Our work was all about help- debt, always working to pay some there and messed with our home”. ing the company, making it big. But debt. That’s why many remain in the no one remembered that we also activity: because they need to pay Luiz Antônio Betin, 46 needed to grow with it. That growth their debts. farmer / (SC) happened, but the company didn’t share it with us. R #2 MON I TO industry poultry Brazil’s

• 8 • Aviary cleaning with flamethrower

• 9 • Precarization of poultry catching workers

SUMMARY

1. Workers who catch live poultry and prepare boxes for transport are considered “the most exploited” in the industry

2. Lack of a formal contracts, excessive working hours – including early mornings – and unhealthy conditions are just some of the problems

3. Poultry catching is usually performed by young male workers with low education

4. A considerable number of those workers are migrants from other parts of Brazil or even from other countries such as Haiti and Senegal

5. Inspectors of the Ministry of Labor and Social Security have already found workers in slave-like conditions both at BRF’s as JBS’s production chains

ach day, about 15 million poul- can be found in southern Brazil, which worked 17 hours and we have to leave try are transported from Brazil- is the main production hub. Work- again at midnight”, she complained. Eian farms to slaughterhouses. ers often face hostile environments Transport is made by trucks carrying in the municipalities where the activ- According to Geni Rosa de hundreds of stacked boxes, each con- ity takes place, since many people see Oliveira, the president of the Union taining seven to ten chickens. Placing them as potential criminals, drug users, of Workers in the Food Industry of them in the boxes and then placing or even as wandering workers who re- Serafina Corrêa, the situation used to the boxes on trucks is a hard task car- main in the region for short times and be even worse a few years ago. “They ried out by teams that travel highways leave debts behind. “I used to have to would leave home and not know when and dirt roads in small vans. Each of lie about my work to be able to rent a they would be back. They’d stay away those teams includes about ten work- house”, says Janel Rheinheimer, who for three days, going from one poul- ers and visits several properties in a has been working as poultry catcher try farm to another and dozing on the single day of work, and they are often for ten years in Serafina Corrêa, RS. way”, she says. Only after much pres- in charge of catching more than 50 sure by the Union on slaughter compa- thousand chickens. In February 2015, Repórter nies, some loading companies began to Brasil visited the city and found that, sign formal contracts with workers and Lack of formal contracts, exces- despite recent improvements in the or- adopt less abusive working hours. sive workdays – including early morn- ganization of the industry, those work- ings – and unhealthy work conditions ers still face many problems. One of Catching poultry is an activ- are just some of the problems often those problems is their unpredictable ity performed by subcontractors for faced by thousands of workers work- working hours, since poultry catch- slaughter companies. They follow a ers of the poultry sector engaged in ing needs to be permanent to supply strict work schedule imposed by the the activity where cases of contempo- an industry that slaughters 24 hours a latter, who determine the farms to be rary slavery have been found. Siderlei day. Many teams have no fixed hours, visited each day and the times to de- de Oliveira, president of the Brazilian which means a chaotic routine where liver the animals. Democratic Confederation of Work- they never know if they will sleep in the ers in Food Industry (Confederação morning, the afternoon or at night – or According to Contac’s presi- Brasileira Democrática dos Trabal- even how many hours they will be home dent, the owners of those companies hadores na Indústria da Alimentação, before the van honks at their door to are basically labor recruiters operat- Contac) says: “Within our category, they start another long workday. ing similarly to the so-called “cats” are the most exploited workers”. (middlemen who recruit labor illegally) “We work up to 12 straight in Brazilian countryside. “Many used to Poultry catching is usually per- hours, depending on the day. Then be poultry catchers who, with support formed by young, male workers with we come home and, after two or three from the industries, set up their teams”, low education. A considerable propor- hours we need to go out again to ful- he says. Some those businesspeople tion of them are migrants from other fill the firm’s schedule”, 22-year-old J. heard by Repórter Brasil, in turn, parts of Brazil or even from other coun- B., a poultry catcher in Serafina Cor- complain about the values paid by the tries – Haitian and Senegalese workers rêa told Repórter Brasil. “Today we’ve industry. Because they are supposedly R #2 MON I TO industry poultry Brazil’s

• 10 • low, it would be difficult to pay work- At the accommodations – one ers’ rights and hire more workers to do of which was an unfinished brick JBS: precarious housing the job. house – some of the problems in- and illegal outsourcing cluded makeshift beds, dirty rooms, The very legality of that out- bathrooms in disrepair and dirty, and n another inspection operation con- sourcing is challenged by some pros- garbage thrown in open living areas. ducted by the federal government, ecutors and labor inspectors. In 2014, In addition, five workers had no for- Inine poultry catchers were rescued the Labor Prosecutor’s Office (Ministé- mal contracts. from slave labor in February 2015 in rio Público do Trabalho, MPT) filed a Forquilhinha, state of . public civil lawsuit against JBS in Nova “Because they come from other Some of them came from the state of Veneza, SC, demanding that catching towns, work in this activity [catching Paraná, and they had been recruited by workers were hired directly by the com- poultry], and are lodged in places that an outsourced company that provided pany for its production chain. The case debase dignity, [the workers] were ex- services to JBS, which owned a slaugh- is still pending. cluded from society and blamed for all ter company in town. local crime”, says the final report of SRTE/RS on the case. Thus, they need- The case was denounced by BRF: poultry catchers not paid ed the employer’s permission to care newspaper “Jornal da Manhã” from for their basic needs such as housing Criciúma, SC, which reported the pres- n July 2012, 12 poultry catchers that and food. “The employer, on the other ence of 40 people lodged in precarious worked for one of BRF’s slaughter hand, took advantage of that situation accommodation – including one lo- Icompanies in Lajeado, RS, were res- and kept employees depending on him cated in a disused mine. The group in- cued from slave labor. They were found for any activity, even preventing them cluded workers and their families, with in neighboring Nova Brescia after a from leaving, especially by restricting children and pregnant women. complaint from the local government. their freedom to use their earnings”. The day after the report was July 2012, 12 poultry catchers We sought BRF to hear its view published, Regional Labor and Employ- that worked for one of BRF’s slaughter on the slave labor case. The company ment Superintendence in Santa Cata- companies in Lajeado, RS, were rescued said that the contract with the supplier rina (SRTE/SC) inspectors visited the from slave labor. They were found in in question was terminated after it be- accommodation in the disused mine, neighboring Nova Brescia after a com- came aware of irregularities: “Note that whose conditions “cannot be described plaint from the local government. BRF periodically reviews the catching in words”, according to the inspec- process in order to ensure compliance tion report. The place was deteriorated According to the Regional La- with legal and contractual premises. by lack of use, with broken doors and bor and Employment Superintendence BRF has sought to work in close con- walls, a lot of dust, dirt, flies, humidity in Rio Grande do Sul (Superintendên- tact with authorities and service pro- and stench, besides all sorts of irregu- cia Regional do Trabalho e Emprego viders in order to prevent disrespectful larities in construction. do Rio Grande do Sul, SRTE/RS), be- conduct towards people who perform sides living in two precarious accom- such functions, in line with the com- Inspectors also found broken, modations, those workers also had pany’s values and code of ethics”. unserviceable toilets and part of the their wages withheld by the employer – an outsourcing company providing exclusive services to BRF, according to inspectors. All of them were migrants from other towns in Rio Grande do Sul.

Inspectors found that almost all the migrants’ wages were used to pay for accommodation, which was pro- vided by the employer, which would charge for rent, water and electric- ity – and food, which, according to the employees, could be purchased only in a particular local supermarket. There they would buy the items on credit and the value would be deducted from their future payment. According to SRTE/RS, some poultry catchers would even be indebted to their boss and not be paid anything at the end of the month.

• 11 • group sleeping on rotten mattresses In addition, JBS says that “it for the victims. The ruling was based placed on the floor in the living room only works with formal businesses, on Decision 331 of the Higher Labor and kitchen. “All the furniture belonged even small ones; all catchers’ teams are Court (Tribunal Superior do Trabalho, to the employees who moved there in formally registered as companies and TST), which, among other things, says hopes of being accommodated in real their employees have work contracts; that subcontractors’ non-compliance homes”, the report says. Moreover, their social security is paid as well with labor standards entails subsidiary they did not have work contracts. As as other labor fees. Furthermore, JBS liability by their contractor. they reported to SRTE/SC, their work- does not work with minors and always ing hours were often longer than the monitors the logistics operation so In an interview with Repórter legal limit. Sometimes they would start that those workers do not exceed their Brasil at the time, Mauricéa co-owner at midnight and only to return at three working hours”. Marcondes Antônio Farias sustained in the morning. that the company had no responsibility for Madonna’s employees and that “ev- The inspection considered that Mauricéa: broken promises ery medium and large poultry company hiring those workers through a third and working over 14 hours in Brazil outsources poultry catching”. party was illegal and it blamed JBS for a day He also said that his company does the problems. According to the Super- not control outsourced employees’ en- intendence, companies providing poul- n April 2013, labor prosecutors filed trance and exit times. try catching services in the region have a public civil lawsuit against Mau- no financial or technical conditions to Iricéa Alimentos, accused of keeping Mauricéa also released a state- manage such business. In addition, the 33 poultry catchers in conditions anal- ment saying that it “vehemently repu- agency says that JBS defines locations ogous to slavery. The problem has been diates any form of work that can be and hours for poultry catching and detected a month earlier, in Barreiras, equated to a condition analogous to therefore it defines employees’ work- BA, by federal government inspectors. slavery” and claimed that the farm was ing hours. The workers were found in degrading “owned by a farmer under an integrated working conditions and were forced to contract with the company – a partner The inspection also pointed work over 14 hours a day. in raising poultry that also provides out that workers rescued were already them to other slaughter companies”. picking up poultry for the slaughter Mauricéa is one of the larg- company before JBS signed a service est poultry-producing companies in The workers had been hired in provision contract with the outsourced Northeastern Brazil. It is a major sup- April 2012, in Brasilia, state of Distrito company allegedly responsible for the plier of the regional market, and it Federal, by “Prestadora de Serviços Ma- workers. “When JBS decides to use that exports to countries like China, Hong donna”, which would provide accom- labor without ascertaining its regular- Kong, and Haiti. The company found- modation and food. However, the com- ity, it takes the responsibility for entire ed in 1988 maintains its own poultry pany ceased to provide it in December history of those employees upon itself, farms, but also works with partners of the same year. Since then, employees such as their illegal recruiting”, the within integrated production system, had to rent places in the city and bring SRTE/SC concludes. similar to what occurs in Brazilian food from home. southern states, such as Santa Catari- In an agreement with labor na. On its website, the company says it According to reports collected prosecutors, JBS agreed to pay com- has ten industrial plants located in the by federal government inspectors, the pensation of R$ 5 thousand for moral states of Pernambuco and Bahia, and company offered beds to workers but damages to each of the workers res- more than 2.3 thousand employees. charged for them. Not every worker cued. It also pledged to pay for the had a formal contract and those who group’s expenses to travel back to their The workers had been hired had it would receive part of their pay- hometowns and the hotel where they by “Prestadora de Serviços Madonna”, ment under the table for an exhausting stayed after the rescue. a company to which Mauricéa out- workday of over 14 hours. sourced services. However, in May that JBS said that the company that year, after prosecutors filed for an in- The inspection also found hired those workers was excluded from junction, the Labor Court in Barreiras, several workers with skin lesions that its list of suppliers: “JBS and all its BA, ruled that JBS should pay the sever- would have been caused by improper brands do not condone these types of ance amount to workers rescued within contact with Primmax Sanquat, a chem- practices and have strict controls for 48 hours. ical substance used to disinfect aviar- hiring service providers. The company ies. The problem would not have hap- does not accept behavior as in situa- The judge in charge ruled that pened if they had been provided with tions the reported. To prevent practices the outsourcing relationship main- proper protective equipment. contrary to its policy, it supervises its tained between the companies was ille- suppliers systematically”. gal and that Mauricéa was responsible R #2 MON I TO industry poultry Brazil’s

• 12 • Accidents and illness in the industry

RESUMO

1. Poultry slaughter and processing are known as top causes of workers’ illnesses in Brazil

2. Three years after the publication of Regulatory Norm 36 by the government, union leaders consider that it resulted in important improvements for the protection of workers’ health

3. But there is concern with new tricks adopted to “circumvent” the regulatory norm, such as increasing the speed of conveyor belts in production lines

4. Audits conducted by the Ministry of Labor and labor prosecutors indicate that JBS is still far from meeting mini- mum health and safety standards

5. An academic study found that the risk of women taking leaves of absence from work due to pregnancy-related dis- orders in poultry and pork slaughter is 4.76 times higher than the average

oultry slaughter and processing that might lead to serious injuries and Based on data from the Na- are known as top causes of work- illness; tional Social Security Institute (Insti- Pers’ illnesses in Brazil. Hundreds ► Psychological pressure to keep the tuto Nacional do Seguro Social, INSS), of thousands of employees of that in- high pace imposed by production lines; the federal government found that, be- dustry often face several risk factors: ► Working hours often exceeding the tween 2000 and 2008, the number of daily limit established by law; such events related to poultry slaugh- ► Constant exposure to knives, saws ► Closed, suffocating, and very cold ter companies was significantly above and other sharp instruments; environment. average: ► Performing repetitive movements

OCCURRENCES IN POULTRY INDUSTRY (2001/2008) Prevalence among employees Prevalence among employees Disease type in all economic sectors in poultry and pork slaughtering (per 100,000 workers) (per 100,000 workers)

712.92 209.11 Mood disorders (e.g. depression) (3.41 times the average)

Disorders related to Nerves, 270.28 40.09 Roots and Nerve Plexus (6.74 times the average) (e.g. Carpal tunnel syndrome) Dorsopathies 805.54 443.7 (e.g. cervical disc problems) (1.82 times the average)

Muscle, tendon 1229.18 and soft tissues problems 288.57 (4.26 times the average) (e.g.: bursitis) 691.23 Wrist and hand trauma 310.99 (2.22 times the average)

46.80 Burnings and corrosion 18.9 (2.48 times the average)

• 13 • New rules were approved in In the state of Paraná – Brazil’s The study is based on INSS data April 2013 to improve working condi- largest poultry producer – there are from 2005-2011. tions in Brazil’s slaughter companies reports of other stratagems being ad- and abattoirs. As a result of pressure by opted by BRF. The secretary-general of In July 2015, Eleonora Meni- several organizations to reduce health the Union of Food Workers in the Car- cucci – the Minister of the Secretariat risks related to the industry, Regula- ambeí Region Wagner Rodrigues Nas- of Policies for Women of Brazil’s Presi- tory Norm 36 established several new cimento denounces: “There’s been pro- dency (Secretaria de Políticas para as guidelines for the operation of those ductive reorganization, with increase Mulheres da Presidência da República, companies. They include: in hours worked. We have reports from SPM/PR) – received workers of the in- several workers who, in order for the dustry and demanded a survey of exist- ► Breaks along the workday for work- company not to be fined in inspections, ing studies on the topic. The situation ers to rest their muscles; punch their cards and return to work”. still lacks a clear diagnosis about its ► Ergonomic and safety adjustments causes. “We don’t know if it’s the am- to factories’ conveyor belts and other Several audits carried out by the monia, the cold, the pace of work or machinery; Ministry of Labor and Social Security some other factor”, says occupational ► Norms to reduce workers’ exposure (Ministério do Trabalho e Previdência physician and Contac/CUT consultant to extreme cold environments as well as Social, MTPS) and labor prosecutors Roberto Ruiz. to soften thermal discomfort; indicate that JBS is still far from meet- ► Adjustment of work stations so that, ing minimum health and safety stan- WAGES wherever it is possible, the work is done dards. Even after approval of RN 36, sitting in alternation with work on foot. inspectors found workdays exceeding survey conducted by the De- 14 hours, abusive pace of work, and at- partment of Statistics and So- Three years after RN 36 was ap- tempts to trick them by slowing down Acioeconomic Studies (Dieese) in proved, union representatives estimate lines of production during inspections 2012 showed that the average wage of that it did result in important improve- by auditors (see table below). a worker employed in poultry slaugh- ments to protect workers’ health. “Where ter in Brazil was R$ 1,218.31. The same it was correctly implemented, the norm Sandro Sardá, a labor prosecu- survey also showed that 59% of them has drastically reduced the number of tor and coordinator of a group special- were paid less than two minimum wag- workers coming to the Union with Re- ized in slaughter companies, denounces es, which currently reaches R$ 880. petitive Strain Injury (RSI) problems”, that “JBS has been adopting a deliberate says Siderlei de Oliveira, president of policy of precarization of labor rela- The average salary shown by the National Confederation of Work- tions”. According to him, the scenario is the study at the time was approximately ers in Food (Confederação Nacional so serious that it is heading to a situa- half the “necessary minimum wage” dos Trabalhadores na Alimentação, tion where all the companies’ units will calculated by Dieese – i.e. the amount Contac/CUT). “The number of ill work- be subject to lawsuits filed by his office. needed to meet basic health, education, ers has been decreasing considerably, housing, leisure, and transport needs a but the industry still needs to further family of two adults and two children. modernize its machinery and adjust its Pregnancy at risk internal practices”, adds Celio Alves The scenario has not changed Elias, President of the Union of Work- he high rate of pregnancy-relat- significantly since then, and better ers in the Food Industry in Criciúma ed problems is another concern wages remain as one of the main de- and Region (Sindicato dos Trabalha- Tassociated with slaughter activi- mands of the industry’s workers. In dores na Indústria da Alimentação de ties in Brazil. In 2013, the Federal Uni- recent years, driven by rising inflation, Criciúma e Região, Sintiacr). versity of Santa Catarina (UFSC) con- the necessary minimum wage calculat- ducted a study and found that the risk ed by Dieese has also risen sharply, and However, there is still concern of women taking leaves of absence due it is now at R$ 3,736.26. This value is about new tricks adopted to “circum- to such problems – including abor- more than three times higher than the vent” the regulatory norm at the ex- tions – is 4.76 times higher in poultry minimum wage adopted at BRF’s and pense of workers’ health and safety. and pork slaughter than the average. the JBS group’s poultry slaughter units. According to Roberto Ruiz, an occu- pational physician and a consultant with Contac/CUT, poultry slaughter MINIMUM WAGE IN POULTRY companies like BRF in Chapecó, SC, SLAUGHTERING UNITS EXAMPLES would be trying to compensate breaks JBS group BRF by increasing the productivity pace. “In the medical care we provide, we see Brasília (DF) - R$ 996.03 Dourados (MS) - R$ 1,030.00 a general complaint by workers that Roca Sales (RS) - R$ 1,044.00 Nova Mutum (MT) - R$ 1,023.00 the pace of work is increasing day by (SC) - R$ R$ 1,051.29 (SC) - R$ 1,090.00 day”, he says. Forquilhinha (SC) - R$ 1,253.03 Caxias do Sul (RS) - R$ 1,090.00 R #2 MON I TO industry poultry Brazil’s

• 14 • JBS  SYSTEMATIC IRREGULARITIES IN POULTRY SLAUGHTERING UNITS Santa Cruz do Sul (RS) In April 2016, the local JBS unit was notified to adopt measures to regulate the working environment. Recommendations included immediately stopping machines oering employee serious risks of accident. Itaiópolis (SC) In October 2015, an MPT/MTE inspection found that the unit’s employees worked over 14 hours a day – three times more than the legal limit; and 93% of deboning employees worked in constant pain. Nova Veneza (SC)

In August 2015, prosecutors filed a lawsuit against the local JBS unit asking for R$ 50 million as collective moral damages. The inspection found that employees in most activities performed 60 to 110 movements per minute – while the threshold deemed acceptable by medical studies is 30-35. Rolândia (PR)

JBS’s slaughter plant in that town was interdicted in May 2015, as well as 45 machines that posed risks to workers’ health and safety. Inspectors interviewed 400 employees and found that 52.9% of them had taken medication to work in the previous 12 months. Nuporanga (SP)

In November 2014, an MTE inspection found, among other problems, excessive work pace at the local JBS unit. According to inspectors, orders were given to reduce the speed of belts in production lines during their visit. The workers said: “When you leave, we’ll suer to catch up”. Santo Inácio (PR) An ammonia leak at the local JBS unit led 66 poisoned workers to the hospital. Prosecutors demanded R$ 16.8 million reais to be paid to the victims as collective and individual moral damages. São José (SC) In August and September 2014 alone, MTE found 3,550 cases of workdays over 10 hours; working over 14 hours a day was common.

• 15 • pany are in line with the market in and to value employees”. In this con- What the which it operates and also that mini- text, the company advocates the mum wages are subject to collective variable pay model it has sought to !industry says bargaining in each location where the implement in their units, through group operates. which, according to the BRF, the egarding health and safety con- wage increase could exceed infla- ditions at their factories, JBS asked about their employees’ tion. “The attempt to limit the discus- Rtold Repórter Brasil that is has wages, BRF claims that allegations of sion about workers’ situation to wage been investing heavily so that all units changes in the pace of production to adjustment reduces the breadth and of all its businesses provide the best compensate for breaks and of work- importance of the meritocratic sys- conditions for employees – invest- ers returning to work after punching tem whose magnitude covers pay, ment that includes the creation of their cards are not true. “The alleged promotions, profit sharing, and other a department of compliance for la- changes in the pace of the tasks at benefits”, the company says. bor relations. The company’s high units would depend on factors re- growth through acquisitions – JBS lated to a complex program that in- according to union leaders has 120,000 employees, more than volves daily slaughter calculations, interviewed by Repórter Brasil, in twice what it used to have in 2012 – farms’ stocks, volume of feed avail- BRF’s variable pay scheme workers would be, according to the compa- able, machines’ speed, among oth- would receive “rewards” if their units ny, a complicating factor. “Since not ers. Therefore, the progressive and reached a set of goals, which include, all businesses purchased were man- variable change does not find techni- for example, decrease in total ab- aged according to JBS’s policies and cal support within this system given senteeism in factories. Contac/CUT values, the company has been work- logistical and structural factors”, the criticizes the proposal for believing ing to bring all these units into their company says. that, by linking higher pay to lower culture by addressing, among other absence rates, BRF would be discour- issues, the labor issues from previous in addition, BRF sustains that aging workers from asking for sick managements”, JBS argues. today’s challenging macroeconomic leaves and urging them to work while environment “requires that all actors sick. BRF was asked to comment on On its wage policies, JBS says involved work to preserve the sus- Contac’s allegations, but it did not re- that the benefits offered by the com- tainability of the business and jobs, spond to Repórter Brasil. R #2 MON I TO industry poultry Brazil’s

• 16 • and integrator industries, is pointed farmers’ representatives, the situation Recommendations out as a tool to change the unfavor- contributed to systematic reduction in able scenario. Advanced in its debate in their pay. In this context, it is relevant commissions of the Brazilian Congress, to discuss to what extent the directions oultry production has gained in- it provides for the establishment of col- of Brazil’s industrial policies for the creasingly importance among lective bargaining instances that in- industry affect the financial sustain- PBrazilian agribusiness products clude integrators and integrated to de- ability of family farming, and what in recent decades. In 15 years, the in- fine parameters for farmers’ payment. would be the appropriate action to cor- dustry has doubled its production vol- rect those distortions. ume, quadrupled exports, and gained The establishment of a mini- increasing weight in the trade balance mum income policy to pay for poultry – fresh poultry was Brazil’s fourth top farmers’ production is certainly a core Poultry catchers export in 2015. point in the parameters they demand. Given that this directive has not been Organization of the activity It is also one of the industries explicitly incorporated into the bill, it that best managed to cross the mael- is essential that collective bargaining lthough crucial for the poultry strom of bad news that has taken Bra- tables do that. The measure is capable industry, poultry catchers’ labor zilian economy after 2015. Last year, of facing one of the main problems af- Aremains almost invisible in its while the GDP declined by 3.8% over fecting the financial sustainability of production chain. They are hired by a the previous year, domestic poultry integrated farmers. vast network of small subcontractors production broke the record – 5.4% and they have no union representa- higher (in tons) than 2014. tion in most towns where the activity Industrial policy is carried out and. In some cases they However, several links in the do not even have formal contracts with poultry production chain still do not he industrial agenda implement- their employers. Recent cases of slave guarantee workers sufficiently digni- ed during the second term of labor described in this report, involv- fied and safe conditions of employment TPresident Lula and the first years ing poultry catchers recruited to sup- and income. The situation of integrated of Dilma Rousseff’s administration was ply companies like BRF and JBS, show poultry producers, poultry catchers, strongly marked by what is conven- that precariousness also exists in ma- and industry workers shows that and tionally called “national champions” jor companies. demonstrates how the distribution of policy. It consisted, basically, in grant- the industry’s growth is highly uneven. ing low-interest loans to specific sec- The often chaotic workday tors of the economy through BNDES in stands among the many problems To face such unequal scenario order to encourage the development of in poultry catching. Common prob- in the poultry production chain, poul- large Brazilian multinational compa- lems include working hours beyond try farmers’ and workers’ demands nies that could compete as leaders in the legal limit, shifts that start in the need to enter the agenda of corporate the global market. morning, afternoon and night, and and government policies for the indus- very short breaks between the end of a try. Some of the main demands to be The animal protein industry workday and the beginning of another. taken into account in this context are was one of the beneficiaries of that In more extreme cases, those workers systematized below: policy, which helped to consolidate the “only get some real sleep on week- JBS and BRF groups as the absolute ends”, as described by a catcher heard leaders in Brazilian poultry produc- by Repórter Brasil. Integrated poultry farmers tion. The expansion of the companies occurred mainly through mergers, ac- The industries have a great Minimum income quisitions and leases. BRF is the result share of responsibility for this scenar- of the merger of the two leading com- io, since they define the work schedule here are frequent reports of panies in the industry in 2008 – Sadia for outsourced transport companies – farmers being paid less than and Perdigão – and JBS, which did not the number of properties where there Ttheir production costs. Uncer- even operate in the poultry sector until will be catching that day, which will be tainties related to the financial return 2009, incorporated industrial plants of the aviaries visited by each company, on the activity and constant demand major competitors such as Seara Ali- the distance among poultry farms etc. for investment in sheds – imposed by mentos, Doux Frangosul and Tyson do According to employers and workers in the industry’s quality standards – cre- Brasil only in the last four years. the industry that were heard, slaughter ate huge financial pressure on poultry companies often inform the schedule farmers who are struggling to pay off Therefore, one of the impacts only on the day before the service. bank loans and support their families. of the “national champions” policy on the lives of poultry farmers was re- Therefore, it is essential that in- Bill 6459/2013, which regu- ducing competition between potential dustries plan and monitor activities to lates the relationship between farmers buyers for their products. According to ensure decent working conditions for

• 17 • catchers. Slaughter companies must tion by “outsourcing” the risks of legal In this context, maintaining monitor whether their subcontractors sanctions regarding human and labor wage policies that ensure real gains have the proper amount of workers for rights violations. for workers is feasible and important, the services in question, and establish as had been occurring in recent years. schedules compatible with legal limits Some actions are already un- Moreover, the adoption of new variable on working hours. The proper use of der way towards poultry catching, for payment policies should be consid- Personal Protective Equipment (PPE) instance, MTPS and MPT inspections ered with caution. In an industry where and the payment of all labor rights – on illegal outsourcing of the activity in workers already have high rates of ill- FGTS, INSS, overtime, vacation, etc – some specific contexts. However, those ness, financially rewarding workers should also be audited. are specific situations, which may be- based on the decrease in absence rates come even rarer if bill 4330/2004 – in industrial plants is dangerous. which allows outsourcing companies’ Legal accountability core businesses to be outsourced – is approved by Congress. Health and safety oultry catching is an essential work for slaughter companies’ mplementation of Regulatory Norm Pcore business – slaughtering (RN) 36 is an improvement for the poultry. Moreover, the conditions under Industry workers Iquality of life of the industry’s work- which the activity is exercised are deci- ers. Recent audits by labor prosecu- sively influenced by policies and pa- Living wage tors and inspectors, however, show that rameters imposed by those companies. there is still much to advance until its he wage floor and the average principles are fully implemented in In this context, it is clear that amount paid to slaughter in- Brazil’s poultry slaughter companies. slaughter companies have more than Tdustry workers are lower than mere social responsibility for the situ- Dieese’s “necessary minimum wage” Authorities must pay attention ation of workers. While voluntary mon- – the amount needed to meet the ex- to maneuvers to circumvent the limits itoring of the chain is necessary and penses of a worker’s family on food, imposed by RN 36, which, by granting important, it should not exclude the housing, health, education, clothing, breaks during the workday will inevi- possibility of holding companies legal- hygiene, transportation, leisure, and tably lead to reduction in production ly accountable for any labor problems safety. And there is evidence that this time during shifts. By compensating found in the activity. gap can be further expanded in the such reduction with increases in speed coming years. on production lines as workers’ repre- Large companies’ responsibil- sentatives say it has been happening, ity for what happens in their supply In recent collective bargaining, companies once again place their em- chains is internationally acknowl- the annual increase granted to the in- ployees’ health at risk in a sector where edged under regulatory frameworks dustry’s workers in some towns was be- illness rates are already significantly such as the UN Guiding Principles on low inflation rates for the period – even above the national average. Business and Human Rights. Coun- though the poultry industry continues tries like Brazil should translate those to have good economic performance The impact of slaughter activ- principles into clear regulatory frame- as opposed to the negative situation of ity on pregnant workers is another is- works and legal accountability, there- Brazil’s economy as a whole. sue to be faced. Given evidence of a fore preventing large corporations serious correlation between work in from benefiting from low-cost produc- the industry and recurrent records of pregnancy-related issues – including abortion – the private sector and the government urgently need to coordi- nate initiatives to establish the causes of the problem as well as appropriate measures to address it. R #2 MON I TO industry poultry Brazil’s

• 18 •