In Brazil, Petrobras has been a signatory of the National Pact for the Eradication of Slave Labor since 2005

RESPECT FOR HUMAN RIGHTS

princciple 4 Businesses should uphold the elimination of all forms of forced and compulsory labor

The Petrobras Social Responsibility Policy explicitly defines the rejection against degrading and slave labor in its production chain. In its supplier relations, the company requires, under its Code of Ethics and contractual clauses, management practices that respect the internationally proclaimed human rights, refusing to accept forced or compulsory labor practices.

Aplicação de esteiras de carnaúbas nos oleodutos do Alto do Rodrigues, no Rio Grande do Norte
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In Brazil, Petrobras is a signatory of the National Pact for the Eradication of Slave Labor since 2005, when it was created.

The incorporation of Petrobras Biocombustível in 2008 and the growing demand for biofuels, such as ethanol, indicated a vulnerability of the sugarcane industry in Brazil: the large number of workers in degrading conditions. In order to prevent its suppliers from using labor in such conditions, all company goods and services contracts include a clause forbidding slave labor, under penalty of rescission of contract and fines.

All suppliers of Petrobras Distribudora, upon registration, sign a statement of commitment to social responsibility, which has a specific clause on forced labor: “The company must not be involved in or uphold the use of forced labor. The workers will not have their documents retained or be obliged to make deposits as a condition for recruitment”. For ethanol procurement contracts, a search for irregularities is checked at the Ministry of Labor and at the database of Employer Register of Administrative Rule 540, so called blacklist.

Considering its representative status in the Brazilian goods and services supply market, Petrobras believes that these requirements have a positive impact, since they encourage companies to base their management on ethical and social responsibility premises. For example, in 2008 Petrobras awarded outstanding companies in the 2007 Responsible Partner Program. This award was designed to share the management practices and values of Petrobras and reproduce them in the supply chain. In the 2008 edition, the award registration counted with 67 fuel customers and 123 suppliers.

The Petrobras Development and Citizenship program does not have a specific line directly addressing forced or slave labor. However, it supported, through the 2007 Public Selection, the Recycle Citizenship project, proposed by the Center in Defense of Life and Human Rights, from Açailândia, Pernambuco. This project strives to create an economic alternative for employment and income generation based on the solidarity economy. It addresses directly and indirectly 200 low-income households arising from slave and/or degrading labor on farms and charcoal burning. The results were the non-acceptance of degrading labor conditions and fight against inducement to slave labor.

No cases were recorded of degrading or slave labor in the operations or administrative activities of Petrobras. However, in August 2008 the case of a new shale mine called Dois Irmãos was widely publicized. In 2003 Petrobras began a process to acquire land to install a new shale mine in the county of São Mateus do Sul, Paraná. A total of 154 properties were acquired on the basis of exchange of land and compensation for the value of the property, including the existing vegetation. In 44 of the 154 properties acquired by Petrobras, it was established, in public hearings with participation of the State Public Prosecution Service and the Environmental Institute of Paraná (IAP), that the former owners would be responsible for clearing the existing vegetation.

In August 2008 the mobile inspection group found labor irregularities in two of those 44 properties. Petrobras immediately summoned the owners of the land to a meeting, together with the Ministry of Labor and Employment (MTE) and Public Labor Prosecution Ministry of Labor (MPT). It was concluded that, from the commercial and civil viewpoint, the signed contracts, together with the deeds, met all the legal requirements.

The MPT and MTE then submitted a draft Conduct Agreement (TAC) to Petrobras. After finding that there was no liability for the facts, the company made a proposal to support the workers, which was not accepted. Since no agreement has been reached, the proceeding is being judged by the Paraná courts.