Banco Real ABN AMRO Brazil

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Banco Real ABN AMRO Brazil Banco Real ABN AMRO Brazil Instituto Observatório Social Sāo Paulo INSTITUTO OBSERVATÓRIO SOCIAL Rua – São Bento, 325, sala - Centro São Paulo (SP) – CEP Phone: 55 (11) 3105-0884 E-mail: observatorio@observatoriosocia l.org.br Web site: www.observatoriosocial.org.br BOARD OF DIRECTORS Chairperson: Kjeld A. Jakobsen (CUT) João Vaccari Neto (Department of International Relations, CUT) Rosane da Silva (Department of Labour Policies, CUT) Artur Henrique dos Santos (Organising Department, CUT) José Celestino Lourenço (National Education and Training Department, CUT) Maria Ednalva B. de Lima (Working Women’s Department, CUT) Gilda Almeida de Souza (Department for Social Policies, CUT) Antonio Carlos Spis (Department of Communications, CUT) Wagner Firmino Santana (Dieese) Mara Luzia Feltes (Dieese) Francisco Mazzeu (Unitrabalho) Silvia Araújo (Unitrabalho) Tullo Vigevani (Cedec) Maria Inês Barreto (Cedec) STEERING COMMITTEE President: Kjeld A. Jakobsen Arthur Henrique dos Santos Treasurer: Ari Aloraldo do Nascimento Carlos Roberto Horta Clemente Ganz Lúcio Maria Ednalva B. de Lima Maria Inês Barreto SUPERVISION Amarildo Dudu Bolito – Institutional Supervisor João Paulo Veiga – Technical Supervisor Marques Casara – Communications Supervisor TECHNICAL STAFF João Paulo Cândia Veiga Leila Nadim Zidan Lílian Arruda Luciana Hachmann Yoná Santos Table of Contents List of Tables ......................................................................................................................... i List of Graphs........................................................................................................................ i Introduction...........................................................................................................................1 Trends and Strategies: Financial Services Enterprises.....................................................3 Performance of the Brazilian Financial System .....................................................................3 ABN AMRO Bank ................................................................................................................6 Global Asset Ranking..............................................................................................................7 Track record in Brazil.............................................................................................................7 Business strategy in Brazil......................................................................................................8 Structure of the Brazilian financial industry ...................................................................11 Brazilian Ranking .................................................................................................................11 Labour relations..................................................................................................................19 Union Freedom .....................................................................................................................19 Right to collective bargaining...............................................................................................21 Strike .....................................................................................................................................22 Negotiation via employees’ organising committee...............................................................23 National Bank Workers’ Negotiation....................................................................................25 International Networks .........................................................................................................27 Access to Information ...........................................................................................................29 Labour Conditions..............................................................................................................32 Child Labour.........................................................................................................................32 Forced Labour ......................................................................................................................32 Health and Safety..................................................................................................................33 Gender and Race...................................................................................................................35 Wages....................................................................................................................................41 Working week........................................................................................................................43 Sexual Harrassment..............................................................................................................45 Reorganisation/ Flexible labour and stability ..................................................................46 Dismissals/Lay-offs...............................................................................................................47 Corporate social responsibility (CSR) ..............................................................................49 Real ABN AMRO’s CSR........................................................................................................51 Sustainability Practices ........................................................................................................53 Microfinance.........................................................................................................................53 Socio-environmental financing .............................................................................................54 Ethical Fund..........................................................................................................................55 Conditions in the Supply Chain.........................................................................................56 Conclusions..........................................................................................................................57 Bibliography ........................................................................................................................58 List of Tables Table 1. Year-by-year Evolution by Type of Control and Number of Banks. .......................4 Table 2. Banks’ Total Assets Global Positioning 2003-2004.................................................7 Table 3. Banco Real ABN AMRO’s Presence in Brazil. .......................................................8 Table 4. Total assets of Brazil’s six largest banks 2004-2005..............................................11 Table 5. Net Profit of Brazil’s six largest banks 2004-2005.................................................13 Table 6. Net Assets of Brazil’s six largest banks 2004-2005. ..............................................14 Table 7. Return on Investment of Brazil’s six largest banks 2004-2005. ............................16 Table 8. Loan Operations / Total Assets of six largest banks...............................................17 Table 9. Profitability of Brazil’s six largest banks 2004-2005. ............................................18 Table 10. Employee Distribution by Race and Sex Real ABN AMRO 2004. .....................39 Table 11. Employee Distribution by Position, Race and Sex 2004......................................40 Table 12. Remuneration Real ABN AMRO 2004................................................................42 Table 13. Real ABN AMRO Workers’Benefits. .................................................................42 Table 14. Average of overtime hours June-December 2004. ...............................................44 Table 15. “Prevailing” Corporate Social Responsibility in Brazil .......................................51 List of Graphs Graph 1. Total Assets of Brazil’s six largest banks 2004-2005 (in millions of reais) .........12 Graph 1.1. Total Asset Variation 2004-2005........................................................................12 Graph 2. Net Profit of Brazil’s six largest banks 2004-2005 (in millions of reais) .............13 Graph 2.1. Net Profit Variation 2004-2005 ..........................................................................14 Graph 3. Net Assets of Brazil’s six largest banks 2004-2005(in millions of reais). ............15 Graph 3.1 Return on Net Assets ...........................................................................................22 Graph 4. Return on Investment of Brazil’s six largest banks 2004-2005.............................16 Graph 5. Profitability of Brazil’s six largest banks 2004-2005 ............................................18 Graph 6. Employee Distribution by Sex – Banco Real ABN AMRO 2004........................36 Graph 7. Employee Distribution by Sex and Position – Banco Real ABN AMRO 2004 ....37 Graph 8. Employee Distribution by Race – Real ABN AMRO 2004 ..................................39 i Introduction The Instituto Observatório Social (IOS) monitors the behaviour of multinational, national and state-owned companies with regard to Fundamental Labour Rights whose underpinnings are to be found, chiefly, on the Conventions signed under the auspices of the International Labour Organisation (ILO), which address such themes as union freedom, collective bargaining, child labour, forced labour, discrimination at the workplace, environment, and occupational health and safety. The IOS was created by the CUT (Brazil’s
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