Labour minister questions meatpacker job losses
Brazilian labour minister, Carlos Lupi, is questioning why meatpacking companies are cutting jobs despite having received loans from the National Bank for Economic and Social Development (BNDES).
Meatpackers have already laid off more than 36,000 people and have closed 32 factories. As a result, representatives of the Independencia Group, which has dismissed 6,400 workers in the last few months, were called to a meeting with the minister along with representatives from other similar companies. However, the invitation was declined because the firm believes “it would not be proper to take part while the group is going through judicial recovery”. In October, BNDES granted Independencia a R$250 million (US$120 million) loan as the first installment of a larger loan of R$450 million (US$215 million), which was never actually completed.
Minister Lupi has committed himself to organising a new meeting with representatives from meatpacking companies, workers' delegates and the president of BNDES, Luciano Coutinho. The meeting is to be held in a few days' time.
Artur Bueno de Camargo, president of the National Confederation of Workers in the Food Industry, says authorities must demand that companies use public money in a responsible wau. "The minister understands that such companies must have social responsibility. They are using tax money and must behave accordingly. We shall demand responsibility from BNDES as well and try and find a way to make sure that companies which are granted such credit lines use it to help keep jobs," he added. Mr Camargo also said that some companies are taking advantage of the crisis to reduce personnel costs.
