Call n°284 (from 26 May to 30 August 2005)

SUGAR - A CODE THAT’S ALL SWEETNESS AND LIGHT

Over 115 years after the Dorée Act [1], slavery is still a reality in Brazil, especially on sugar plantations. The sugar industry has been boosted by the planned liberalization of international trade that favours the production methods practised in that country. Leading multinationals, many of which are European, have anticipated this event by investing heavily in Brazil in recent years. Yet by neglecting labour rights in the sector they are supporting modern forms of slavery and importing sugar produced in unacceptable conditions. In 2003 the main players in the sugar industry adopted a code of conduct on their firms’ social responsibility, that they presented as exemplary. However, apart from the limits inherent in this type of approach, the code applies no further than European borders. Hence, the need to demand that these companies, especially Tereos, the main foreign group in Brazil, extend their commitments to the entire industry.

35-year-old Antonio Malaquias is a sugar cane harvester. He borrowed money to travel to the Piracicaba area (São Paulo State), one of the country’s modern alcohol and sugar production centres, in search of a job. Today he is so heavily in debt that it is impossible to return to his wife and five children, when in fact he wanted to earn money to take back to them.

In many cases harvesters rise at 4.30a.m. to take the bus to work. The journey lasts an hour and a half. On site they work at an unbearable pace since the number of canes cut determines the wage. After the bus ride back in the evenings they prepare food to take to the fields with them the next day - hence, their nickname ’Boias Frias’ (cold food).

In harvesting season, which lasts for five to eight months, thousands of Brazilians, mostly from the northern, north-eastern and southern areas, migrate. In Paracicaba these migrants account for 80% of the population. Most of them have no social welfare coverage. The majority are illiterate men in the 18-45 age-group. Many become ill due to the change of climate, and labour accidents are frequent. The suicide rate in this social category is well above the average. At the end of the season they are often unable to pay the free back home and end up staying in the area without a job.

These intolerable living and working conditions are denounced by Brazilian organizations striving to improve the situation, such as the FERAESP, the Federation of Rural Employees of São Paolo.

END SLAVE LABOUR

Many of Brazil’s unemployed are reduced to slavery in a system of bonded labour [2]. Agents for large landowners recruit with promises of good wages but when they arrive, labourers discover that they have to refund their trip, buy their own tools and rent accommodation. They have debts even before they start working.

In 1995 the government created the Labour Inspection Department that cooperates with the police to fight this plague. With the arrival in power of President Lula, the State stepped up the struggle but progress is slow. A worker has to lodge a complaint against his employer and prove the facts, and there is a lack of federal officials. Poverty forces the unemployed to suffer the worst conditions in silence.

Positive signs have nevertheless been noted. The number of complaints has multiplied and in 2004 the federal police released several dozen people in the city of Piracicaba in what they themselves called situations of ’modern slavery’. It is in the same region that most European firms’ investments are concentrated.

THE MULTINATIONALS CONCERNED

In anticipation of the sugar market reform (see opposite), European and especially French investments have increased substantially in Brazil in recent years. The sector lives in phase with this manoeuvring. With the merger-acquisition of Beghin Say by Union SDA, the new group Tereos has become the leading foreign group in the country, along with Louis Dreyfus, the German companies Sudzucker and Nordzucker, British Sugar, the Swiss Glencore and Alcotra, and the US Cargill.

Most problems of slavery are related to sub-contracting of manpower, standard practice in this sector. The multinationals are thus able to deny their responsibility. Yet in 2003 the European sugar industry made a lot of noise about its voluntary commitment to responsible social and environmental policies by adopting a code of conduct. Although this voluntary procedure is not enough to guarantee satisfactory social and environmental conditions in the sector [3], the code could help trade unions in the South to secure improvements - provided that the text is not limited to Europe as is currently the case. It is therefore essential that the multinationals concerned - especially Tereos which has leeway and considerable influence - ensure that their commitments are met throughout the sector, starting in the sugar cane fields themselves.

FURTHER INFORMATION

Reform to the sugar market:

The European Union’s Common Organization of the Sugar Market has guaranteed stable export earnings to a small number of ACP (Africa, Carribean, Pacific) countries. But subsidies to European sugar exports (from sugar beet) have resulted in dumping on other markets and collapsing prices. Equilibrium in the world sugar market is changing considerably. Total liberalization of the European market is scheduled for 2009. In the meantime Brazil, Thailand and Australia lodged a complaint against European sugar policy with the World Trade Organization which ruled against export subsidies on 28 April 2005. This decision will trigger new negotiations.

These changes have been anticipated by multinationals which have invested heavily in countries of the South to take advantage of liberalization of the sugar market.

Position of French NGOs

In July 2004 the Plate-forme pour des Agricultures durables et solidaires (Platform for sustainable agriculture and solidarity) adopted a position on reform of the sugar market, subsequently also adopted by the CRID (a network of French NGOs for international solidarity).
ADS Platform : www.agricultures-durables-solidaires.org
CRID : www.crid.asso.fr

CALL IN LIAISON WITH:

Collectif de l’Ethique dans le Sucre :http://sucre.ethique.free.fr
Potirendaba rural workers union (affiliated to the Brazilian FERAESP and CUT)

WHAT TO DO?

By letter: cut and paste the standard letter below or use your own wording. Send your letter to the address indicated below (in the letter) and remember to add your own name and address and to sign your letter.
Deadline: as soon as you receive this call and not later than end-August 2005.

LETTER

Date:

M. DUVAL
Président
TEREOS
Parvis de Rotterdam
Tour Lilleurope
59777 LILLE

Monsieur le Président,

J’ai été informé par le Réseau-Solidarité (10, quai de Richemont - 35000 Rennes) des graves violations des droits économiques et sociaux dont sont victimes les ouvriers agricoles dans les plantations de canne à sucre au Brésil, allant jusqu’à des situations d’esclavage moderne.

Votre société est très présente dans ce pays, elle est un acteur incontournable du secteur et a donc une responsabilité importante.

En 2003, l’industrie sucrière européenne a adopté un code de conduite concernant la responsabilité sociale des entreprises, mais qui ne s’applique pas au-delà des frontières européennes. Pour être crédible, ce texte doit concerner l’ensemble du processus de production, y compris les fournisseurs et sous-traitants sur tous les continents.

Etant donné votre place dans le secteur sucrier, je vous demande instamment d’étendre l’application du code de conduite de l’industrie sucrière européenne à l’ensemble de votre filière d’approvisionnement, et d’instaurer un dialogue avec les organisations syndicales au Brésil comme dans les autres pays.

Je vous prie de croire, Monsieur le Président, en l’expression de mes sentiments distingués.

Translation:

Dear Sir

I have been informed by Réseau-Solidarité (10 quai de Richemont, 35000 Rennes) of serious violations to the economic and social rights of agricultural workers on Brazilian sugar plantations. In some cases these labourers are in situations of modern slavery.

As a leading actor in the sugar industry, with a strong presence in Brazil, your company has a heavy responsibility.

In 2003 the European sugar industry adopted a code of conduct concerning firms’ social responsibility, but has failed to apply it beyond European borders. To be credible, this code has to concern the entire production process, including suppliers and sub-contractors on every continent.

In view of your position in the sugar sector, I urge you to extend the application of your code of conduct to your entire supply network, and to enter into negotiations with trade unions in Brazil and other countries.

Yours sincerely (signature)

[1] Brazil ’imported’ millions of African slaves to exploit raw materials and tropical products for the ’Colonizing Mother’, Portugal. After independence (1822) the rich landowners carried on benefiting from slavery which was finally abolished by the ’Dorée Act’ in 1888

[2] Cf. Call n°236 by Réseau-Solidarité (24 May 2001) : Brésil - Pour ne pas finir esclave. 25-30,000 workers are believed to be in situations of slavery in Brazil.

[3] Cf. Codes de conduite , Outil de progrès social ou coup de pub ?, published by Peuples Solidaires, 2004, 114 p.