Evaluation report of V&M Florestal Ltda. and Plantar S.A. Reflorestamentos, both certified by FSC - Forest Stewardship Council Brazil, November 2002 A report written by a research team (*) for the World Rainforest Movement. Contents: INTRODUCTION Chapter 01: SOME COMPANY FEATURES - V&M Florestal Ltda - Plantar S.A. Reflorestamentos Chapter 2: THE CERTIFICATION PROCESS THROUGH SGS AND SCS - The composition of the certifing group and content of the assessment - Participation of the interested parties in the certification process - The rational of conditionning - Public access the the Public Summary (PS) Chapter 3: REGARDING THE REGION'S SOCIAL, ECONOMIC AND ENVIRONMENTAL CONTEXT Chapter 4: VERIFICATION OF FSC PRINCIPLES AND CRITERIA Chapter 5: FINAL CONSIDERATIONS Bibliography Acronyms (*) report and field work by: - Marco Antônio Soares dos Santos André - Articulação do Semi-Árido (ASA) - Espírito Santo. - Rosa Roldan - Assessora de Meio Ambiente do Central Único dos Trabalhadores (CUT) - Rio de Janeiro. - Fábio Martins Villas - Conselho Indigenista Missionário (CIMI) - Espírito Santo. - Maria Diana de Oliveira - Associação de Geógrafos do Brasil - Minas Gerais. - José Augusto de Castro Tosato - Centro de Estudos e Pesquisas para o Desenvolvimento do Extremo Sul da Bahia - CEPEDES - Eunápolis - Bahia. - Winfried Overbeek - Federação de Órgãos para Assistência Social e Educacional - FASE- Vitória Espírito Santo. - Marcelo Calazans Soares - Federação de Órgãos para a Assistência Social e Educacional - FASE Vitória - Espírito Santo. This report is based on research carried out during November 2002 in the Brazilian state of Minas Gerais, coordinated by WRM with support from the Friends of the Earth biodiversity project. 1 INTRODUCTION With the aim of contributing to fine tuning the principles and criteria establishing “good management” and with a view to enhancing the discussion on the FSC* forest certification system, the World Rainforest Movement (WRM) commissioned two studies to help assess the management of homogeneous plantations certified by FSC. One of the studies was made in Thailand and the other in Brazil. Particular attention was paid to Principle 10, on “plantations” and its specificity within the set of the other principles referring to actual forests. The idea of carrying out independent studies of this type arose from a concern shared today by many socio-environmental movements and organisations both in the South and in the North, regarding the certification of millions of hectares of uniform and large-scale plantations of trees all over the world. In supplying wood products for unrestricted demand, many of these socio-environmental groups have questioned the possible “sustainability” of thousands of hectares of a single and uniform cultivation. It is not surprising that various complaints have been made against certified company plantations since the FSC included and approved Principle 10 on “plantations.” However, in order to discuss within FSC improvements to the plantation certification system, in addition to complaints more elements are necessary. It is along these lines that the idea of a study arose, showing the results of an assessment of certified companies, based on a critical look at the local situation where such companies operate. In the case of the plantations assessed in Brazil, we have used as guidelines the Summary and Public Proceedings (PS) made by the Certifiers, the Brazilian FSC Plantation Certification Models and the FSC Principles and Criteria. This study is an attempt to provide elements for discussion of the certification of plantations within FSC. Here in Brazil we decided to assess two companies: V&M Florestal Ltd., which in January 1999 obtained the FSC seal through SGS for all its managed units: 234,886 hectares, of which 128,326 are planted with eucalyptus. We also assessed Plantar S.A. Reflorestamentos that had an area of 13,287 hectares certified by SCS in two stages between 1998 and 2000. During one week in October 2002, we listened to the various interested parties and visited the areas of the companies in the districts of Curvelo and Bocaiúva. We studied the Certification Summary and Public Proceedings and the Monitoring Reports. We talked to the inhabitants who live near the company zones, trade union leaders, sub-contracted workers, people who had had accidents, pensioners, workers who had been dismissed, city councillors, public inspectors, state deputies, technicians, research workers, academics, non-governmental organisations and representatives of regional public bodies and entities. We consulted available documentation on the region, academic theses, public civil legal action, and reports by the Parliamentary Investigation Commissions. In the first chapter of this report, is a brief description of the two companies, presenting some of their general features. In chapter 2, a critique is made of the certification process for the two companies, as carried out by SGS in the case of V&M Florestal and by SCS in the case of Plantar S.A. Reflorestamentos. Following this, in chapter 3, we comment on the Public Summaries and their insufficient focus on the historical, economic, social and environmental context in which the companies participate. Furthermore, we have attempted to provide some elements that were not considered by the certifiers, but which are of importance in this context. In chapter 4, we record the lack of compliance by the companies with all the FSC Principles. As a conclusion, final considerations are made and a bibliography, list of acronyms and other attachments are included. 2 It is important to note that we are not authorised to reveal the name of some of the people interviewed in this report, as they feared reprisals would be taken by the companies. We can but respect such requests and fears. In some cases, we decided on our own to conceal the name of the person, due to the seriousness of the complaint and the power of the companies in taking reprisals. Therefore, in some cases some names are given as interviewee, local inhabitant and/or trade union member. We insist that these are real people and that they are at the disposal of FSC-International, under the condition that the necessary reserve is maintained. If they so request, we are willing to take FSC-International representatives to talk to these people, and to take them to see the places we visited and describe. Finally, we emphasise our concern and surprise over the fear these people feel, because this should not happen when dealing with certifying companies. Chapter 01: SOME COMPANY FEATURES V&M Florestal Ltda. V&M (Vallourec & Mannesman) Florestal Ltda. (hereinafter V&M), located in the city of Curvelo (State of Minas Gerais), was founded in the year 2000, three years after the Mannesman Ltda. Company, founded in 1969, mainly with German capital (Mannesmanröhen-Werke AG), entered into partnership with the French Vallourec group, setting up V/M Tubes, located in Europe. Its representative in Brazil is the Grupo V&M de Brasil, of which V&M Florestal Ltda. is part. The main objective of V&M is to produce timber for charcoal. When it was founded, the company’s objective was to substitute the use of coal at the V&M Brazil steelworks in Barreiro, Bello Horizonte. Today, V&M Brazil are self-sufficient regarding their charcoal, supplied by V&M and annually produce some 450 thousand steel tubes. The Public Summary (PS) of the certification data, show that V&M has 235,886 hectares of land in the State of Minas Gerais in four different districts, seen in the table here below, which also indicates the average charcoal production for each district. Zone Curvelo Bocaiúva João Pinheiro Brasilândia Total Total area (ha) 46,147 47,577 87,899 54,263 235,886 Area planted (ha) 33,867 33,457 40,567 20,435 128,326 Average charcoal production (m3) 350,000 300,000 390,000 240,000 1,280,000 Source: Public Summary (PS) of V&M Florestal certification (SGS Forestry) The 235,886 hectares belonging to the company are located in 25 properties of sizes varying from one thousand to 36 thousand hectares and, according to the company, cultivated lands averaging 25 hectares each are used. In the cultivation zones, the company has planted various kinds of eucalyptus (E. camaldulensis, E. urophylla, E. cloeziana, E. citridora, E. grandis and E. pellita). Recently the original plantations have been substituted by cloned plants that ensure greater homogeneity and productivity and increase the efficiency of this activity, in regard to the policy of the new owners of the company, the Vallourec Group, who want to make an annual reduction of between 10% and 15% in production costs. Each property, except the two smallest ones, has a charcoal stack on its own grounds. The production of charcoal has traditionally been made in small 3 round ovens, (see photos 2 and 2a). In 1998, the company still had 1,500 ovens of this type but in the Public Summary (PS) by the SGS it is stated that the ovens were being gradually substituted by large ovens which they called “modern” (see photo 3) and in 1998 there were already 300 of these, following the trend to substitute the traditional ovens. Once produced, the charcoal is transported to the V&M Brazil factory, covering a distance of 364 km. There is no concrete data on the area of 107,560 hectares that are not planted with eucalyptus. According to the PS by SGS, the company has close on 60 thousand hectares of native reserves, although there is no indication of where such zones are located and the rest of the areas still has to be differentiated and specified, such as those areas where eucalyptus was planted unsuccessfully and others having natural forage. Due to the failure of the first eucalyptus plantations, the company decided to set up its own research centre totally geared to research on the cultivation of eucalyptus species. Over all these years, the company has always endeavoured to lower costs to ensure profitability of the business. A strategy that has shown to be extremely effective is the automation of work, for example the use of machinery in extraction and transportation of timber. One such machine substitutes close on 70 chainsaws. The introduction of new charcoal ovens has also left the great majority of these workers out of a job. Another important strategy to lower costs is the outsourcing of timber extraction and charcoal production activities, increasing productivity. With these strategies, the total number of workers has dropped considerably since the eighties, while the number of outsourced workers today far exceeds the number of stable workers. See the following table: V&M Florestal 1998 1999 2000 2001 Stable workers 838 726 672 Outsourced workers 1,701 1,619 1,470 Total 3,000 2,539 2,345 2,142 Source: Public Summary (PS) for V&M Florestal certification (SGS Forestry) Outsourcing frequently makes work precarious, and is combated by the company through the adoption of the so-called “minimum models” that must be followed by the outsource companies. According to the PS, V&M has always supported campaigns against child labour, a problem in the zone and specifically in charcoal production activities. The company is installing in all the properties 25-metre wide corridors with native vegetation. There are 500 metres of eucalyptus between one corridor and the next. These corridors are an important advertising weapon for the company as it would seem that it is the only company, of the dozens of companies in the same sector operating in Minas Gerais, which has installed them. According to the company’s Website on Internet (www.vmtubes.com.br), V&M “employs labour in the field, taking development to the rural areas of Minas Gerais and even contributes considerably to the reduction of the greenhouse effect.” This is stated because it uses charcoal in steel production. Charcoal is considered as a source of energy contributing less to global warming than coal. 4 Plantar S.A. Reflorestamentos Plantar S.A. Reflorestamentos (hereinafter Plantar), founded in 1967, is a corporation of closed national capital and the shareholders are members of the Moura family. The Plantar Group undertakes three different kinds of activities: - Provision of forestry services to major companies, mainly in the cellulose sector (presently the company is planting trees in an area of over 350 thousand hectares in various States in Brazil); Cast iron metal works Plantation of eucalyptus on their own lands The company has some 15 plots of land totalling 280 thousand hectares, and its main activity is eucalyptus cultivation, aimed at the production of charcoal to supply its own iron works. Forest management on such lands has the same basic features as other companies such as V&M: - It was installed at the same time and, partly, in the same zones; It has chosen monoculture tree plantations of a single species, eucalyptus (the company produces annually around 10 million plants, increasingly as clones); It has adopted short term rotation cycles; Its main activities are timber extraction and charcoal production; It prefers to outsource its main activities. Recently the company has started producing charcoal for barbecues that has had a good reception in the domestic market. In 1997, unlike V&M, Plantar requested the FSC certificate for only a part of its plantations, that is to say, some 9,419 hectares in the municipality of Curvelo. In the year 2000 another 3,868 hectares were added, totalling 13,187 hectares, that is to say, 4.8% of the area is certified. This represents a minimum percentage if it is compared to the total area belonging to the company. Certified eucalyptus only serves to produce charcoal for barbecues. In this respect, the certification is an interesting option for the company as it ensures an increase in the price of the product sold. It should be noted that in the case of Plantar, certification may be of a strategic nature, given the company’s concrete attempts at getting its plantations recognised as a Clean Development Mechanism (CDM), and at selling the so-called “carbon credits.” However, the fact that the company has only certified a small part of its plantations does not prevent it from announcing in its Website on Internet (www.plantar.com.br) the following: “The Green Seal – this certificate ensures that our forest is well managed, according to FSC principles and criteria, that is to say, it is managed in an environmentally responsible, socially beneficial and economically viable way.” It would seem, according to this declaration, that the certificate is valid for all the company’s cultivations, which does not correspond to the truth. Chapter 02: THE CERTIFICATION PROCESS THROUGH SGS AND SCS In this chapter, we intend to question some aspects of the certification process carried out by SGS in the case of V&M, and SCS in the case of Plantar. On analysing the Public Summaries (PS), we 5 observe that the certifying companies follow certain steps in their work, that is to say there is a certain sequence of activities, for which they use manuals, checklists, itineraries and/or defined methodologies. This leads us to believe that the problems noted tend to occur in other certifications made by such companies. Here below we will look at some problems worth noting. The composition of the certifing group and content of the assessment In the case of Plantar, the SCS group comprised a specialist in Forestry Resource Planning and Management and another specialist in Environmental Planning and Management. It is worth mentioning that there was no one from the social and/or economic area in the group. This may explain, but not justify, why in the PS no study has been made of the local economy, the workers’ situation, the situation of the local communities and other aspects that are not directly related with silviculture itself, but that are extremely important in the assessment of FSC Principles and Criteria (see chapter 03). Furthermore, the members of the SCS group did not sufficiently analyse the environmental history of the area, which underwent a violent process of destruction of the native, Cerrado vegetation, although they were specialists in Forestry Resources and Environmental Management. In the case of V&M, the SGS group involved more people (five members) and was more balanced: a SGS-Qualifor coordinator, a forestry engineer, an expert in ecology, a sociologist and a university professor in the area of silviculture and environment. Even so, it may be criticised for the same reason as the SCS PS: it lacks a sound study of local socio-economics, the workers’ situation, the local communities’ situation and the environmental situation of the zone. The absence of these studies seriously compromises a complete assessment that takes into consideration in a balanced way, all the principles and criteria formulated by the FSC for the certification of forestry plantations. Participation of the interested parties in the certification process The PS referring to the assessment for certification of the V&M company enumerates various “interested parties” with which, according to SGS “meetings and discussions were held” (PS by SGS: page 30), without commenting, at least briefly, on the results of such meetings and discussions. It is worth mentioning that during our fieldwork we heard the trade union members mentioned in the list of “interested parties” consulted by SGS state that they certainly had not been taken into account during the certification process in 1998. Some members of a specific trade union even stated that they had only learnt that the company had obtained the FSC seal during collective bargaining meetings, at the headquarters of the company in Curvelo, when they saw posters on the wall advertising certification of the company by FSC. Regarding Plantar, the PS states that: “the group contacted various companies providing subcontracted services to Plantar, local leaders and NGOs.” Among the “main contacts and comments” (SCS PS: 2.3, page 4) briefly mentions the result of the meetings with a single NGO (AMDA) and a local leader (the mayor of Curvelo), both having a favourable opinion towards the company. It does not mention any service supplying company among the “main contacts and comments” (PS SCS: 2.3, p. 5). SCS even states that: “it did not contact the Rural Workers Trade Union in the zone because there is none in activity in the city of Curvelo” (SCS PS: 2.3, page 6) with no further comments. The fact that there was no trade union in that place and at that time is a surprising piece of information that SCS should have thoroughly looked into, because of the 6 inhuman nature of the activities being carried out by the workers as we will see further on. A simple initiative would have been to contact the Minas Gerais Federation of Rural Workers’ Trade Unions (FETAEMG), in Bello Horizonte or the Federation directly representing the working class in the eucalyptus zones: the Minas Gerais Extractive Industry Workers Federation (FITIEMG). Furthermore, it is worth noting that some important leaders and entities that we identified during our fieldwork are not among the “interested parties” presented by SGS and SCS. These are: - - - - - - - - The (Federal) Public Ministry of Labour (MPT) of Bello Horizonte (MG) which for years has been investigating and prosecuting for illegal activities practically all the companies taking part in charcoal production and practicing outsourcing, including V&M and Plantar; The Regional Labour Office (DRT) which recently, in March 2002, prosecuted some 50 companies, among which Plantar and V&M, for illegal outsourcing of labour and for not respecting the labour environment; The Parliament of the State of Minas Gerais, which over the past 12 years has set up at least 3 Parliamentary Investigation Commissions (CPI) to investigate the practices of forestry companies, including those of V&M and Plantar; The Extractive Industry Workers Federation of Minas Gerais (FITIEMG) in Bello Horizonte (MG), which represents and defends the interests of the category of wage earners and salaried employees who work in forestation activities and charcoal production and which has denounced illegal sub-contracting and slave child labour in the charcoal stacks of companies planting eucalyptus; The Federation of Agricultural Workers of the State of Minas Gerais (FETAEMG) that represents the rural workers trade unions in that state; The Montes Claros (MG) Pastoral Land Commission (CPT), an organisation originating in the Catholic Church, which is very much respected due to the fact that it defends the peoples’ right to the land. It followed closely the first Parliamentary Investigation Commission (CPI) set up in 1994 against the forestation companies, including V&M (which was Mannesman at that time) and Plantar, verifying the practice of slave labour on the companies property; the state deputy, Rogerio Correia, author of the so-called Pequi Law (Law 13965/01) promoting cultivation, extraction, consumption and marketing of pequi*, a typical fruit from the savanna zones, in addition to other typical fruit; The Montes Claros Centre for Alternative Agriculture (CAA) which is fully aware of the impacts of eucalyptus cultivation on the savanna and which develops activities aimed at the sustainable use of the savannas by the local communities, verifying their economic, social and environmental sustainability; The State University of Montes Claros (UNIMONTES) which, since the Pequi Law (Law 13965/01) has become a reference centre with a view to coordinating research, maintaining a database, preparing and disseminating teaching materials, promoting recovery and valorisation of the local culture and other activities related to the pequi and other fruit and native Cerrado products. The rational of conditionning The two companies that granted the FSC certificate to V&M and Plantar adopted similar systems to correct the companies’ lack of compliance with a certain FSC criterion and/or principle. The SGS uses the terms “Major Corrective Action (MajorCA), which must be adopted in the short term (at the most some months), if the certification is not to be disqualified, and “Minor Corrective Action” (MinorCA) that the company must also adopt, although it does not disqualify certification. In turn, 7 SCS uses the term “conditioning,” equivalent to the SGS MajorCA and the term “recommendation,” equivalent to the SGS MinorCA. The rationale applied by the certifying organisations is not clear when they decide on MajorAC or Minor AC, or on a conditioning or on a recommendation. In the case of V&M, the fact that there was no fauna survey and therefore no monitoring plan warranted a MajorAC by the SGS. The fact that the company had not adopted any attitude over the mass dismissal of its workers over the last 15 years, contributing to an alarming situation of unemployment, warranted a MinorAC by SGS. To judge from this example, the problem of unemployment is less important, although the FSC states on the one hand that “Forest management operations shall maintain or enhance the long-term social and economic well-being of forest workers and local communities” (FSC: p. 4) and, on the other hand, maintains that “Forest management should include the research and data collection needed to monitor, at a minimum the following indicators: {…} c) composition and observed changes in the flora and fauna” (FSC: p. 8.c2). At no time does FSC clarify what would be more important: caring for the flora and fauna in their areas or the care of thousands of former workers that the company has dismissed over the past 15 or 20 years. Finally, what calls our attention – and we will refer to it further on in this report – is that it would seem that nothing prevents certification. When in the case of V&M, the SGS verified that there was no management plan for the non-cultivated zones (45% of the certified area!), it was sufficient for V&M to submit a programme for a survey of the flora and fauna in the zone and, based on this, prepare a management plan to avoid the certification being delayed or abandoned. In practice, regarding this and many other fundamental aspects, it takes years for the company to adapt to the FSC Principles and Criteria. In many cases of actions that the SGS required of V&M, it was sufficient for the company to submit plans or programmes without showing any evidence of concrete and monitored actions, to correct the problems of the company’s inadequacy. In the case of unemployment mentioned earlier on, the MinorAC, demanding that the company provide concrete support to generate alternative employment, was no longer in force following the first monitoring, without the generation of a single alternative job having been verified (see chapter 04 – Principle 05: Benefits from the forest). Moreover, there are other examples in the report. In this respect, it is worthwhile asking the following: - Can a company be certified based on a “conditioning” that depends on a series of conditions and recommendations, the number of which in turn depends on the total of the problems observed? What is the point of imposing conditions and recommendations if they are not sufficiently monitored and if concrete evidence of the problem having been solved is not demanded? Shouldn’t there be real evidence that the companies have abided by all the FSC principles and criteria before granting them the FSC certificate? Public access the the Public Summary (PS) None of the “interested parties” we visited had knowledge of the Public Summary (PS) made by SGS on V&M, and by SCS on Plantar. The trade unions that SGS listed as entities consulted during the process are to be found on this list. Furthermore, there is a lack of general information on what the FSC is, that is to say, what this type of forest certification means. In addition to this, before carrying out our fieldwork, we were able to observe that the PS that is to say the first and second monitoring visits by SGS referring to certification of V&M, were only available in English in the SGS-Qualifor Web page on Internet. The report of the third monitoring 8 visit made in December 2001 suddenly appeared in Portuguese, the official language of Brazil! This means that SGS did not place the PS on certification in Portuguese in the most indicated means of communication for publication and dissemination at the present time (Internet), making public access to the information leading to certification of the V&M plantations even more difficult for the extremely important “interested parties” such as the trade unions, in a country where very few people know English. It should be noted that, contrary to SGS, SCS placed a Portuguese version of the Plantar certification on the Internet, with comments on the monitoring visits. However, it should also be emphasised that the report it published is more concise than the version on V&M that SGS made available in English. Chapter 03: REGARDING THE REGION’S SOCIAL, ECONOMIC AND ENVIRONMENTAL CONTEXT An enormous gap in the “public summaries” of the FSC certifiers (SGS and SCS) is related to the general socio-economic context of the territory where the certified management units are located, both in the case of Plantar and of V&M. References are lacking, even minimum ones, on the inhabitants of the locality, of the hinterland or surrounded by plantations, their spatial dynamics and their historic temporality. It is impossible to assess the real impact of eucalyptus monoculture on nature and on regional society, rural or urban, without a minimum context that makes interpretative references possible. How do you assess the impact of the plantations without a temporal cut and comparison with what the previous situation was? How do you measure benefits and damages unless you insert them in the regional socio-economic fibre, comparing them with those of other sectors, cultures and land uses? How do you calculate economic viability of certified management projects without a detailed study of the central, state and municipal public policies, tax incentives, lines of credit, funding, tax exemption, research and all the State investment? The SGS Public Summary made in January 1999, certifying V&M, devotes about three paragraphs to the subject of “contexts,” on referring to Land Use History (page 5) and to Social Aspects (page 7). “MAFLA’s (read V&M) plantation area is made up of many small farms (fincas) scattered over a large area. Most of these farms have been planted with eucalyptus for some time, with many areas already being replanted after three rotations. The farms were purchased by the company from farmers who had generally cleared the land for pasture or planted eucalyptus.” (SGS PS: page 5) Using a general and imprecise language – scattered with words such as many, large, most, some time, generally – the summary makes it impossible to undertake a careful interpretation of the real land use history, as it lacks spatial, temporal and quantitative references. Basic information is missing, on both the regional micro and macro-territory: the dynamics of the rural zones, the society that lives around the plantations, their organisations and institutions, traditional communities, the little villages, rural exodus, family agriculture, community grazing land, the importance of Cerrado species for medicine, cooking, handicrafts and the construction of housing. 9 On the social aspects, the report limits itself to state that: “Due to the very dispersed nature of the plantations, there are several communities within the area covered by MAFLA’s (read: V&M) plantations including Curvelo, João Pinheiro, Bocaiúva, Brasilândia, Paraopeba and other smaller communities. The area is largely agricultural, although there is a large hydro-eletric power station. Mannesman is an important employer and also contributes significantly to local tax revenues.” (SGS PS: p.78) No reference is made to urban zones, cities and districts around the plantations where the charcoal workers and their families live, the places where the city infrastructure is concentrated, the outpatients clinics, schools, churches, the various civil associations, the trade union premises, the handicrafts and small trade geared to the local market, the feasts and most important dates for major concentration of people, or to what the communities’ main problems are. None of this has warranted a single word by the auditors, or their attention while they were there. The public summary written by SCS in 1998 when it certified the Plantar Company, maintains the same silence over characterisation of the zone’s socio-economic context. The five paragraphs devoted to the regional context (article 1.4 Characterisation of the environmental and socioeconomic context) are limited to making a superficial analysis of Brazil in general, commenting on the 1965 forestry law, a line on the 1967 to 1988 tax incentives, the Minas Gerais State Forestry Institute (IEF) and IBAMA. It locates by coordinates and altitude the municipality of Curvelo, where the plantations are located, and even classifies the original vegetation, and that is all! This is very little to enable FSC to be able to interpret sufficiently the context where the plantations are located. The public summaries and monitoring reports say more through their gaps and omissions that what is written in them. A proof of this is that there is no mention in any of them of the long struggle by the (Federal) Public Ministry of Labour against the illegal sub-contracting made by various companies planting eucalyptus, either to produce charcoal or cellulose, among them V&M and Plantar, surprised in flagrante, explicitly infringing the law. The auditing carried out does not write a single line on the legal procedure lodged by the Regional Labour Office (DRT) in March 2002, when slave labour and child labour was being controlled and the two companies were summonsed once again. Nor do the summaries say anything about the Investigation Commissions (CPI) set up over the past eight years in the Parliament of Minas Gerais, where the two companies were again mentioned. Can these “facts” be ignored? What about the mobilisation of people, technicians, promoters, trade unions, inspectors, delegates, deputies, senators and journalists? Between 1998 and 2002, the issue was addressed several times in the main newspapers, television channels and radios in Minas Gerais. How can one ignore all this over all these years of successive monitoring and assessment? The certifiers' disregard for the public context of this state has prevented their access to basic information on the territory where the forestry management units are located. Even “public domain” information went unnoticed in the FSC auditing. This can imply serious consequences regarding the “message” that the seal is transmitting to the final consumers: that this is an environmentally responsible, socially beneficial and economically viable product. The SGS report on V&M, perhaps out of precaution, does make two comments on these “facts,” one on “unemployment and outsourcing” practiced by the company – linking them to the international dynamics of globalisation – and the other affirming the proactive position of the company referring to the eradication of child labour. The SCS summary on Plantar does not even approach the issue, as 10 if nothing was happening around the company or even within it. In this respect, the disregard of the auditors is inexplicable: the Parliamentary agenda, the actions of MPT and DRT, and the mobilisation of civil society, all this was in the pages of the newspapers and was one of the most commented on subjects before, during and even after the certifiers’ assessments. How is it possible that this did not warrant any attention or at least a few words? The dates do not lie. All these processes were simultaneous! While the assessment, certification and monitoring of these companies was going on, their illegal operations were public and notorious. The absence of a careful reading of the socio-economic universe where the plantations are located and the lack of a context, prevent a sound assessment being made of the real impacts of eucalyptus monoculture on the region’s society and environment. The reports reveal a subjective interpretation by the auditors, starting with their choice of what they will cover and the priority issues to be analysed, their selection of uncritical interlocutors, going on to the field visit guided by the narrowest interpretive horizon, lacking temporal and spatial territorial references. We have required of ourselves to devote part of this report to the forgotten “Cerrado,” forgotten by the regional public powers and disdained by the certification auditors. Based on an in-depth study of the native ecosystems and their local use, the auditors would have elements to assess, not only the impacts of eucalyptus cultivation, but also the “adaptation” of large-scale eucalyptus monocultures to their environment. According the the Tropical Database (1995) disseminated by the University of Brasilia, the savannah is the second largest biome in South America, with 200 million hectares, covering a fourth of the area of Brazil. There are various types of savannah: the dense savannah (dense forest and cerrado with trees of between 8 and 15 metres), the savannah (open forest with trees of between 5 to 8 metres), the open savannah (open bushy formations), the rough savannah (grasslands with the occasional presence of bushes) and the clean savannah (grasslands with scant or no bushes or trees). Over the past years, the number of research works on this unknown biome with surprising biodiversity has increased. It has close on 10 thousand species of trees and plants, 195 species of mammals, and 780 species of fish, 180 of reptiles, and 113 of amphibians. The Cerrado is in danger because it has been invaded by agriculture and silviculture (large-scale plantations of eucalyptus and pine) and by urban spread in some zones. In Minas Gerais alone, almost half of this biome has been destroyed over the past thirty years. The expansion of the agricultural frontier has contributed to new blights and diseases in such monocultures, according to research by the University of Brasilia on the changes in phytonemotoid communities caused by the conversion of natural ecosystems into ecosystems planted with eucalyptus, pine, Soya beans and rice. This explains the need for an intensive use of agrochemicals to guarantee the productivity of forestry plantations in Cerrado zones if monoculture is chosen. According to a survey made by the University of Brasilia, the Cerrado offers various types of services as it has species of timber trees (130), food plants (65), textiles (24), cork trees (18) trees producing oil and fat (29), medicinal plants (170), plants used for handicrafts (32), in bee-keeping (167) and hundreds of species having a potential as forage. This data must be further studied and completed according to various researchers of this biome (University of Brasilia, 2001). Research work carried out by Carlos Alberto Dayrell at Riacho dos Machados, a Cerrado zone near Montes Claros shows how, over time, the local populations have learnt how to live harmoniously and sustainably with the Cerrado 11 “The diversity of the native flora is also of capital importance for the geraizeiros (inhabitants of the Cerrado). As we observed, extractive activities contribute up to 42% of the annual gross production and provide, in addition to external income generated by the marketing of some products, food that is rich in vitamins, minerals and proteins, edible oils, soap, remedies, medicinal plants, timber, etc. Furthermore, on studying typical family agro-ecosystems, we saw how they use with certain frequency between 26 and 78 different species of native plants. One of the families surveyed showed a knowledge of 114 different plants: their use (food, medicinal or others), their most common location in the landscape, their form of reproduction (seeds or cuttings) and, in many cases, the month in which they flower or the fruit can be harvested (1)” (Dayrell, 1998) The Savannah Network of Non-Governmental Organisations is a group of entities and movements that struggle for the survival of this biome, defending recognition of the Cerrado as a “National Heritage,” similarly to the Mata Atlântica and the Amazon region, in compliance with Agenda 21 and the Biodiversity Convention. Furthermore, in order to ensure a sustainable use of the savannah, the Network defends the instrumentation of Extractive Reserves and Agro-extractive Settlements. Chapter 04: VERIFICATION OF FSC PRINCIPLES AND CRITERIA PRINCIPLE 01: Compliance with laws and FSC principles Forest Management shall respect all applicable laws of the country in which they occur and international treaties and agreements to which the country is a signatory, and comply with all FSC Principles and Criteria. Forest management by the V&M and Plantar companies has clearly and constantly infringed Brazilian laws and some of the international treaties signed by Brazil, such as the ILO Conventions and the International Pact on Economic, Social and Cultural Rights (IPESCR). This was a unanimous conclusion reached by the group following the fieldwork carried out around the companies’ plantations and based on reports and documentation from various sources gathered in Bello Horizonte. Regarding labour laws, the illegal practices of the two companies have been meticulously reported and recorded in the reports of the Parliamentary Investigation Commission (CPI) (Final Report of 11 June 2002), in the lawsuits lodged by the Federal Public Ministry of Labour (MPT) of June 2002 and the monitoring actions and procedure undertaken by the Regional Labour Office (DRT) on 11 and 23 March, 2002. According to the CPI’s final report (2002):“near on 40 inspectors entered into action.” Both V&M and Plantar were investigated, and caught in flagrante, being mentioned in this set of documents as companies practicing “outsourcing that degrades” the working and living conditions of the charcoal workers who are underemployed through illegal outsourcing. According to the MPT, and quoting the specific jurisprudence: “the consultative nature of an activity confided to a third party is a fundamental element in the legality of outsourcing, as the company cannot refuse to carry out the business for which it was set up, under the penalty of the corporate contract being considered as fraudulent and transferring to others the risk inherent in the company’s activity” (MPT, 2002). 12 The Parliamentary Investigation Commission (CPI) set up on 23 October 2001, produced a final report dated 11 June 2002, in which the innumerable irregularities of both V&M and Plantar are noted, among 42 other “reforestation” companies. Their crimes are related with the outsourcing process, the precarious labour relationships, the abominable working conditions, slave and child labour, and deforestation of the Cerrado. It is important to note that this is the third CPI, comprising deputies from Minas Gerais, which since 1994 have produced (with the direct assistance of the Public Ministry, the DRI and the rural workers’ trade unions) a wide knowledge of the sector. On 16 May 1994, the “Parliamentary Investigation Committee was set up to investigate within 120 days, the existence of slavery for work debts in deforestation and production of charcoal in the north of Minas Gerais” (Parliament, 2002). On 29 June 1995, another commission was set up for the same purpose. Subsequently, on 19 August 1995, a third commission was established “to investigate the complaints against the so-called ‘charcoal mafia’ that operates mainly in the north of MG” (Parliament, 2002). Faced with so much pressure from the Minas Gerais civil society, the rural workers trade unions, parliamentarians, public promoters and Ministry of Labour inspectors, the companies were obliged to sign an “Adjustment in Behaviour Agreement” which “eliminates the figure of contractor.” Some companies signed the agreement, however, according to the promoter, V&M is one of the companies that did not want to sign the “agreement” and refused to change their illegal position regarding labour laws. Even so, the companies that did sign the “adjustment agreement” were surprised in flagrante delicto, not complying with the agreement; this was one of the reasons for the last CPI being established. This Commission finished its work this year, in 2002, with another overwhelming report: “fraudulent outsourcing, crimes against the organization of labour, ecological destruction, infamous remuneration, deterioration of working conditions, 12 hour working days, the hours spent in travelling to and from the workplace were never paid, back problems, hypertension, lung diseases, precocious old age caused by unhealthy working conditions” problems in “housing the workers, hygiene, drinking water, food, transport” and even a “black list” against all the provisions of the International Labour Organisation (ILO) regarding freedom of trade union organisation. Furthermore, Economic, Social and Cultural Rights have been infringed – the right to development, to water, to land – as we will see further on in this report. FSC principles and criteria such as interpreted and applied by SGS and SCS, have been the object of marketing and advertising by the companies, as if the seal made them “immune” to Brazilian laws and international treaties sighed by Brazil. Regarding environmental laws, V&M and Plantar have openly disregarded one of the main regulations of the Brazilian environmental law, CONAMA 001/86 resolution, which requires companies of their size to obtain permits through the submission of a EIA/RIMA (see also Principle 06). PRINCIPLE 02: Tenure and use rights and responsibilities Long-term tenure and use rights to the land and forest resources shall be clearly defined, documented and legally established. It was impossible to carry out a broad notary survey in the region to corroborate the long-term tenure and use rights of the territory managed by V&M and Plantar. However many of the interlocutrixes we talked to questioned the fact that “restituted lands”* had been occupied in the 13 whole area by a series of companies planting eucalyptus, among them V&M and Plantar. Such “contracts” between the reforestation companies and the State of Exception are about to expire, and therefore the apparent “agrarian stability” of the zone would be compromised. The group noted clear evidence of “disputes” with some neighbours over the property and traditional use and tenure rights. According to the material from interviews with university professors from the UFMG, with NGO technicians and research workers in the northern region of Minas Gerais - even according to the literature consulted - and the innumerable testimonies we gathered in the neighbourhood of the plantations and in the cities of Curvelo, Bocaiuva and Montes Claros, most of the land in the north of Minas Gerais was State owned, that is “restituted land” and leased out on a long term basis, approximately 20 years, to companies planting eucalyptus in the seventies and the eighties. In the memory of older people, who were young in the sixties, seventies and eighties, is the action of “RuralMinas”, which controlled the system of conversion of “restituted lands” to “reforested” lands. There is no sure knowledge of the scale or the extension of the “restituted lands” within the territory today held and used by eucalyptus companies in Minas Gerais – close on 2 million hectares. Some of the testimonies we gathered during our fieldwork spoke of very high figures: between 80% and 90% of the land of such companies would be land originally held by the State and of traditional use by the society of Os Gerais*. It is the Cerrado “without palisades” of the writer João Guimarães Rosa. According to the final report of the CPI: “The greatest areas of restituted lands are to be found in these regions (north, northeast and northwest of MG). By means of a loan or rental for reforestation and charcoal production, the State granted a major part of these lands to large iron and steelwork companies. Furthermore, in accordance with IEF data, presently there are over two million hectares planted with eucalyptus. Only a quarter of the area was planted with company resources. Therefore, most of the plantations, that is to say a million and a half hectares, obtained funding from tax incentives offered until 1986”. In this report, the CPI writes, “Behind these horrible crimes are the large iron and steelwork companies and cellulose and paper producers.” (Parliament, 2002). On this same subject “restituted lands in Minas Gerais,” the journal ISTOE published a long article on 15 July 1998, with the title: “Some yes, others no. An area of 265,1 thousand hectares which should have been given back to the State, shows that the agrarian policy in Brazil is one for those who are landless and another for the companies.” According to the journalists Alan Rodrigues and Luiza Villaméa, “two years ago the government of Minas Gerais should have received 23,6 thousand hectares of the 265,1 that it leased out in 1975 to 19 reforestation companies in the north of Minas and the Valley of Jequitinhonha.” According to this article, many of the contracts signed between the companies and the dictatorship in the seventies expire between 1998 and 2002. According to ISTOE: “…the companies disregard the commitment they signed, of creating forest districts in exchange for tax incentives. They did not fulfil their part and, in addition to not giving the land back that they have exploited for over two decades, they now attempt to incorporate it into their equity, basing themselves on the law of usocapião which grants the real estate to whoever exploited it for 20 consecutive years” Some landless families of rural workers hope that: “the State will recover the restituted lands and they will be able to settle there and ensure their right to the land, to work and to income.” 14 The assessments made by SGS and SCS to obtain FSC certification in V&M and Plantar respectively, overlooked such information and their reports cannot guarantee with total security that both companies are not involved in the occupation of restituted lands. The public summaries for V&M and Plantar only point out that these companies have the “tenure” of the property, but say nothing about the origin of such tenure and its direct relation to “restituted lands.” Nor do they mention the innumerable policies and incentives granted by the central and state government that, during the military government, promoted the unsustainable occupation of the Cerrado. Some of the local inhabitants maintain that most of the lands were restituted lands in the zone where V&M is established. They mention as an example the Pé do Morro finca, which had 5 thousand hectares of land and which is now in the hands of V&M Florestal. In the case of reforestation companies such as V&M Florestal, occupation of restituted lands means that they do not have the real and legal tenure of such areas, contrary to what the PS states. According to the inhabitants, these lands should be returned to the local communities at the end of the contract. Some people interviewed stated that the contract implied that the companies paid the State of Minas Gerais a given amount, which in turn was invested in the promotion of eucalyptus cultivation in this State. This is an absolute nonsense! Near the Pé do Morro finca in Bocaiuva, we found two villagers who have land disputes with the company. The first one had an area of 57 hectares invaded by V&M in the eighties. The company has already planted and cut eucalyptus twice. He does not accept this occupation of his land and lets cattle enter the zone under dispute. The other land is that of a rural producer who insisted that he did not want to be identified because he was afraid the company might persecute him. He affirmed that nearly all the company managers had gone to visit him. This neighbour also said that all the lands in the neighbourhood were restituted and that the company had bought the right of tenure from the State and then bought out, one by one, the occupiers of the restituted land. In his case, he said he had not lost out, but that the company had fenced in some 120 hectares. He said he took them to court and managed to recover part of the lands but he does not touch them, as they are Cerrado. He also stated that there were more disputes of this nature in the zone, as was later confirmed by other neighbours. They want to take their cattle to the plantations on their lands but state that they are afraid the cattle will die, as there have already been cases of dead cattle due to the use of agrochemicals in the eucalyptus plantations. PRINCIPLE O4: COMMUNITY RELATIONS AND WORKERS’ RIGHTS Forest management operations shall encourage the efficient use of the forest’s multiple products and services to ensure economic viability and a wide range of environmental and social benefits. The fieldwork, the testimonials by fixed workers at Plantar and V&M, the interviews with outsourced workers, pensioners due to disability, dismissed workers, the visit to the neighbourhoods in the urban outskirts of Curvelo and to the homes of charcoal workers’ families, in addition to the documents obtained during the field work, the CPI report, the civil action lodged by MPR, the reports of the DRT and the interviews with the procurator, the deputies and trade union members, all this leaves no doubt. The treatment received by Plantar and V&M’s workers, both direct and indirect (and their families living in the urban outskirts) is far from what FSC maintains in its principles and criteria and is even far from Brazilian labour laws. Regarding the surroundings of the company plantations, innumerable disputes have been observed, mainly involving the families of small rural farmers and the companies, either over agrarian 15 problems, limits of the farms, the use of agrochemicals, the deviation of traditional routes or issues relating to water resource management. Regarding urban areas, the companies’ strategies, outsourcing, eliminating many jobs and generating little tax revenue, ends up by causing negative effects on the urban economy. Therefore, the social and economic well-being of the charcoal workers and the local communities has not been ensured nor enhanced by the companies under study. Regarding this principle, it is evident that certification has not satisfied one of its main roles: differentiating what is sustainable. Community relations In Curvelo, for example, a municipality were V&M and Plantar have installed eucalyptus plantations, a simple glance at the history of the region, its rural zones and urban outskirts, makes it possible to observe that, before the arrival of the eucalyptus-charcoal companies, before the sixties, there was a considerable number of small and medium-sized companies in the urban area that used Cerrado products as raw material: pasta-making companies, caster-oil factories, leather and tanneries, saddle-makers, shoe factories, liquor factories and other pequi products, cotton-oil factories, textiles, sweet-factories. In the rural zone integrated to the Cerrado, in this territory without palisades, rice, beans and maize was planted and traditional dairy and meat farming was practiced. At that time, Curvelo had a population of approximately 15 thousand inhabitants. The arrival of eucalyptus monoculture, taking over the restituted lands, concentrating and fencing in fields, cutting down the Cerrado, competing with agriculture and stock-raising and uprooting the peasants, finally did away with the bases of the region’s traditional economy. The industries benefiting from the raw material from the Cerrado went bankrupt. The grazing crisis destroyed the urban micro-economy that depended on it. Even traditional textile industries that generated many jobs were obliged to close their doors (see photo 1). The pequi is the main symbol of this destructuring of the economy, the culture and regional society, carried out by companies that call themselves “reforestation companies,” among them V&M and Plantar, two of the most important companies, responsible for this de-structuring process. The pequi is habitually consumed by the population in the Cerrado zone and is deeply rooted in the regional culture and cooking. For the Geraizeiros, the Cerrado inhabitants of Minas Gerais, the pequi does not belong to anyone, because it belongs to all. Therefore, they maintain their ancestral right to take it wherever it is, in public or private land, fenced in land or unfenced land, etc., wherever it is, the pequi was always “accessible” to the regional society. Since the sixties, due to logging and installation on a wide scale of eucalyptus plantations, the pequi and all that it represents are under a serious threat. So much so, that at the market in Curvelo we did not find any pequis for sale. Some trades people commented on the difficulty they have in obtaining this fruit, which was previously so accessible. Many of the disputes between the companies and the families of small rural farmers date back to the time the companies were installed. There are a considerable number of complaints linked to V&M, who had promised the small farmers jobs and better living conditions, while these insisted on remaining isolated among the eucalyptus plantations. Some of the older farmers in the zone of Curvelo remembered that for having refused to sell their lands, the company contaminated their streams with agrochemicals, depreciated the price of their lands and obliged them to sell for less. They consider V&M and Plantar to be responsible, due to their management and the use of agrochemicals, for the extinction of fish in their streams, mainly the piau and the piranha that the rural families used as food. In the zone of Bocaiuva, there were cases of cattle dying through poisoning. In Curvelo, some families complained about death by poisoning of rheas and even the disappearance of the Cayman. 16 As we pointed out under Principle 02: Tenure and use rights and responsibilities, various neighbours confirmed the existence of disputes related to the land registration and real demarcation made by V&M and Plantar. According to the farmers, the restituted lands that the companies received from the State were extended on fencing in the land. This problem warrants a special auditing and the certifiers should not have remained silent. Regarding water, an increasingly scarce resource in the north of Minas Gerais and contaminated by the agrochemicals used in managing the plantations, indicators are alarming: dozens of municipalities have declared a “state of public calamity” due to the prolonged drought affecting them, directly related to large-scale eucalyptus monoculture. In this zone, according to the CAA technicians in Monte Claros, one of the greatest compact blocks of eucalyptus plantations in the world is to be found: 1,200.000 hectares! In the Curvelo zone, near Paiol de Cima, small farmers say that the company should restore a stream that has completely dried up and that before the plantations it only dried up one month a year. The farmers say that following logging of the eucalyptus and mainly during “re-sprouting,” the local water situation is much more serious. A farmer from a neighbouring community confirmed this. With regards to Plantar, there was another significant conflict during the first semester of 2000 between the company and the inhabitants of various rural communities in the zone, related with the construction of the company’s new nursery and the consequent detour of a route traditionally used by many inhabitants of Canabrava, Paiol de Cima, Meleiros, Cachoeira do Choro, Paiol de Baixo and Gomos, among others. According to the declarations of various small farmers, teachers, students and families from the zone, in addition to trade union members and city councillors, Plantar diverted the traditional route because it did not want the “dust” (it is a dirt road) to affect the eucalyptus plants sown in the new nursery. For this reason, the company, with the help of the Municipal Executive Power, increased by nearly 5 km the distance to reach the route, negatively affecting students, teachers and the community in general that even today cover the route on foot. Some 900 students and teachers from the Sergio Eugenio School were particularly affected. In order to build this route Plantar even levelled off some 400 m2 of a watering place that should have been considered as a permanent conservation area and contracted three dams on the Boa Morte river, all this for use by the nursery and in detriment to the water consumed by the surrounding inhabitants, who started building cisterns for fear the quality of the water coming from there. Many leaders demanded that Plantar install a system for decantation of water from the nursery. In Paiol de Baixo, some washerwomen complained about the company, as they have to walk further to have access to water that used to be close. According to the local leaders, what had happened was reported to SCS, which agreed to go and visit the site, but once again, it disregarded the problem. The inhabitants of the zone complained about the threats made by the mayor of Curvelo, Maurilio Guimarães to the community leaders: the authority stated, “He is not responsible for those who continue to use the traditional route.” According to these same leaders, a manager of Plantar called Marcos Tavares de Deus recognised the damage caused to the communities but stated that the company would have been involved in great expenses had it chosen another solution to install the new nursery. The local population states that the works cost CR$ 45 thousand and that any other solution, as stated by the company, might have cost over CR$ 90 thousand. According to a leader of the affected communities, Plantar did not have any discussions with the community. “All was done more or less in secrecy. First, they built the dam, and then they diverted the route. It took us all by surprise.” The SCS reports do not contain any mention of this conflict! 17 Some city councillors, opposing the mayor, state that the water crisis is so serious that there is a specific policy to build 75 thousand artesian wells. The same councillors demand that Plantar be made responsible for a part of the costs. The water crisis and contamination of springs with agrochemicals in the whole Curvelo zone have given rise to a mineral water boom on the local market. According to a councillor from the region, “anyone who is able avoids drinking the water from the COPASA Water Company.” According to these interlocutrixes, about 70% of the inhabitants of Curvelo, even some sectors of the most underprivileged classes, prefers not to risk drinking the water of the company in this State, because they fear that the high rate of cancer and kidney problems in Curvelo many be related to the poor quality of the water supplied to the population. Some SENAR (National Service for Rural Learning) instructors complain about the very poor water quality offered there. In Felixlandia, surrounding the Buriti lagoon, Plantar purchased forage lands to plant eucalyptus. The inhabitants of the zone complained that before the eucalyptus plantations, the grasslands offered opportunities for employment of the local population. According to these neighbours of Plantar, the company’s eucalyptuses require much less labour and generate considerable unemployment in the local society. In the zone of Curvelo, various interviews with small farmers and cattle ranchers show that companies such as V&M and Plantar, on purchasing lands indiscriminately, end up by inflating the price of land, leading to many small and medium-sized owners selling their land. For example in the year 2000, Plantar purchased a property of approximately 120 hectares with Cerrado vegetation in the zone of the Lagoa do Capim finca. According to the testimony of some local inhabitants, the company logged this vegetation and planted eucalyptus, causing the cattle-ranchers in the zone to fear the agrochemicals used in management and the consequent contamination of its rivers. The arrival of eucalyptus reforestation has deteriorated the services that the Cerrado provided to regional society and has tremendously hampered the sustainable development of a region with an economy in ruins, it has banished family agriculture and cattle raising from rural areas, it has felled the Cerrado and generated the increasing impoverishment of the population. The society feels that V&M and Plantar are unsustainable companies, devastating the way of life of the geraizeiros. To finish off this sub-chapter on community relations, it is worthwhile noting that none of the people interviewed in the surroundings of the V&M and Plantar plantations were aware of FSC certification of the two companies. According to the Public Summaries by SGS and SCS, the local communities had been informed. The inhabitants maintain that the only concern of the companies when they communicate with the neighbourhood is over fires and the fear of a major fire in their plantations. The inhabitants of the neighbourhood receive “correspondence” or printed matter on this issue, telling them how to avoid fires. Labour relations There is nothing that can explain the absolute silence in the respective “public summaries” and “annual monitoring reports” by SGS and SCS concerning the serious problems related to the “labour world” in V&M and Plantar’s certified forestry management units. The diverse reports by the certifiers do not address the issue, even in a tangential way, in spite of the fact that it is of public domain in regional society, its representative institutions and entities and even in the press and television media in Minas Gerais. Sub-human labour conditions, excessively long 18 working hours, child labour, illegal outsourcing and subjection of the workers, irregular transportation of workers, unhealthy and degrading work, black lists of the worker leaders, lack of freedom and union autonomy – all this has been the object of innumerable articles in the regional mass media, the issue of various public debates in several municipalities and, for many years has been on the agenda of state and federal parliamentarians in MG in the CIP It has mobilized over 40 inspectors in different proceedings and actions by the Ministry of Labour and its regional DRT office, promoting the action of the Federal Public Ministry of Labour, which led to civil action against the two companies and nothing, nothing of all this has warranted a single word in the SCS and SGS assessment and monitoring reports. The PS by SGS on V&M only praises the company, its initiative and solidarity on the issue of child labour: “Child labour has also been a significant issue in the region and there have been a number of campaigns to try to eradicate this practice. Mannesman (read V&M) has supported these campaigns…” (SGS PS: page 8). In March 2002, V&M, Plantar and 40 other companies were again prosecuted by the DRT, for the illegal exploitation of 646 workers in timber extraction and charcoal production in the areas registered. Immediately, the Regional Labour Official responsible for the operation was removed from his post, which goes to show the political power the companies have over society and the region’s public bodies. According to a state union advisor, modern ovens, increasingly used by V&M, do not resolve the problem of the charcoal workers’ precarious labour conditions, who continue to be exposed to the danger of the job and the smoke from the ovens, although less than with the conventional ovens (see photo 2). During a visit to the zone of modern ovens in the Santa Cruz finca, at Felixlandia (see photo 3), a worker was found who manages all the ovens in the zone. He worked 12 hours a day, controlling on his own, almost 12 ovens, and at the time of the visit, he was not wearing the protection mask against toxic gases. According to an investigation made in 1994 by the Ministry of Labour (FUNDACENTRO), at the Corredor finca that belonged at the time to the Mannesman Company, carbon monoxide (CO), an odourless toxic gas was found in concentrations of between 2 and 10 times more than the permitted value. Such concentrations were measured in various labour situations of the charcoal workers, when loading the ovens, when a lot of smoke comes out. The presence of CO above the value allowed, gives rise to a process of intoxication and poisoning with serious consequences to the workers. It is not surprising that several informers state that many charcoal workers who had been working for years in charcoal production had died and the health of others was compromised. Furthermore, the union members denounced that one of the enormous doors of an “improved” oven had fallen on a worker, causing his death. This worker was subcontracted and his family received no compensation. According to the union members, the company has no policy to compensate those people who suffer from work-related diseases or accidents, or to compensate the families of those who have died because of such activity. Furthermore, they maintain that the category of wage earners working with eucalyptus is one of the worst paid categories. For example, they declared that those who work cutting sugar cane earn almost twice as much as those who work with eucalyptus. Although apparently work-related accidents are not very numerous in the V&M Company, the workers say that this is due to the fact that V&M employees are afraid of loosing the basic basket ensured in the Collective Agreement. Therefore, there are no records and frequently the worker 19 obliges himself to work even if he is sick. The concrete number of labour claims is unknown, as the unions do not follow these processes. However, they consider that there are very numerous cases. We will quote some of them. Case 01: Union leader: He had an accident. The accident was not recorded. He had never had any training and/or skills improvement course from the company. Case 02: The wife of this union leader, who also worked for V&M, had an accident in the company. She worked in the kitchen and on going to look for something in the pantry that had no light, an object fell on her head, causing a skull injury. She claimed against the company, but lost. The judge alleged that it had been her fault. According to various informers, no worker has ever won a case with this judge, which goes to show the difficulties of those who have work-related accidents. In the PS by SCS on Plantar, the subject is completely concealed. Not a single line is written! Furthermore, the SCS text shows a deep ignorance regarding worker representation in Curvelo; it states that “No contact was made with the Rural Workers Union in the region because there is none in activity in the city of Curvelo.” (SCS PS: page 7). Nothing could be further from the truth! The V&M and Plantar companies, certified with the FSC seal, have since been monitored by the SCS and SGS certifiers, and by CPI. The Federal Public Ministry of Labour and the DRT are gathering explicit proof of infractions and crimes against Brazilian labour laws, which are theoretically less stringent than FSC principles and criteria. However precarious and minimised the Judicial Power of Brazil and Minas Gerais, and however easy it is to elude Brazilian labour laws, in practice, in the case of V&M and Plantar, it has enabled a better monitoring and follow up to be made of the labour processes within the certified FMU, than that of the FSC system with its principles, criteria, models, methods of assessment and monitoring and its “independent” certifiers. Following the mechanisation process of forestry activities and based on degrading and exploiting outsourcing of labour, both V&M and Plantar have ended up by liquidating countless workstations. In 1998, V&M had 3 thousand jobs. In 1999, they dropped to 2,539. In 2000 the figure dropped further to 2,345 and in 2001, there were only 1,908 jobs generated by the company. A detail: of the total number of workers of the company, direct employees dropped from 1,500 in 1998 to 654 in 2001, while the number of indirect employees increased from 1,500 in 1998 to 1,701 in 1999, dropping again in 2001 to 1,254. This picture, presented by SGS itself, did not warrant any real conditioning, and the impact of these dismissals on the life of the workers and their families - left without remuneration and under the care of the urban outskirts, such as those of Curvelo, Pompeu, Bocaiuva or Montes Claroes, where the public services have become overloaded - was minimised. In addition to illegal outsourcing and dismissals caused by the introduction of new technologies, without a prior impact study, there were also dismissals related with labour intensification and overexploitation. According to the company workers, with the increasing number of dismissals in V&M, tasks that used to employ 20 workers, today only employ three, generating more work-related diseases and accidents, although no records exist. The inhabitants living near V&M’s charcoal depot located near the village of Trevão on the highway declared that in August 2002 all those working in charcoal packing were dismissed. In its reports, SGS only related such dismissals to generic movements of global capital and the industrial cultivation sector in Brazil. In fact, what is not set out is the need for a company policy, providing assistance and qualifying dismissed workers for their reinsertion into the labour market. They loose their income, some benefits such as the basic basket and health insurance and no company policy exist for those who have suffered an abrupt impact on their lives. The State unemployment benefit is insufficient and lasts too short a time to enable these workers and their families to wait for a new job in decent conditions. If the FSC seal is expected to be a differentiator, the certified companies must have specific policies for the families, 20 which without employment and without income, are cast into social exclusion by the companies themselves, at the expense of the public powers and regional society. The destiny of the people dismissed from Plantar is no different from those of V&M. The group visited some neighbourhoods in the poorest outskirts of Curvelo, such as Ponte Nova, Saroba 2, Mato Engenho, where workers dismissed by Plantar or by its contracting companies live. The evidence of a labour crime attracted our attention. A worker, whose name we shall not reveal for security reasons, was dismissed from Plantar when two months pregnant. The dismissal occurred three years and seven months before the date of our fieldwork. According to the former worker, she was dismissed because a box containing plants fell down in the nursery where she worked. The destiny of this worker, like all the others Plantar has dismissed, is no different: critical social exclusion. In the Ponte Nova neighbourhood, where she lived, explicit child prostitution was exercised in the streets by the daughters of charcoal workers of V&M, Plantar and their outsource companies. Regarding the outsourcing process, both V&M and Plantar have been mentioned in the CPI 2002 Report as companies practicing a type of illegal outsourcing, degrading labour conditions. Through a Public Civil Action, Dr. Geraldo Emediato de Souza and Dra. Adriana Augusta de Moura Souza, Federal Public Ministry of Labour inspectors, gathered explicit proof of lack of compliance with labour laws, both at V&M and at Plantar. The Ministry of Labour inspectors made an exhaustive survey on this matter during different municipal inspections. According to inspector Geraldo Emediato, at least Plantar was willing to review its illegal process of outsourcing, signing a “commitment agreement” during 2002. Regarding V&M, the SGS report only states that the company has “minimum standards” in order to accept the services of an outsource contractor company (... MAFLA’s response has been to develop a standard for all contractor companies detailing the minimum level required...”) (SGS PS: page 8). A former employee of V&M described in detail how the outsource process took place in the sector where he worked in November 1998. This is his testimonial: “When V&M outsourced the “maintenance” sector where I was earning 452 reales, the contracting company where I was “designated” wanted to pay me the minimum wage at the time, around 130 reales. The contracting company even wanted to conquer me with the possibility of a “premium” per hour worked. So, I thought that I would be doing the same job as I used to do at V&M, but for a salary 75% lower than the previous one. I was loosing the health insurance, the basic basket and overtime. I had only a few years left before retiring.” His case was similar to his other 20 former co-workers at V&M in the same sector. According to this former employee, V&M and its contracting companies never pay for unhealthy work. Outsourced workers earn by production, but their labour document shows the minimum wage. Furthermore, V&M was accused by various trade union members, by the MPT, the CPI and the DRT of having a “black list” and providing it to local contracting companies so they would not admit the people who were on the list. The company was also accused of re-hiring, after two years, dismissed workers if they had not lodged any labour claim before Justice. The fact, proven and documented by MPT, is a very serious infraction of ILO Conventions 87 and 98, regulating freedom and autonomy of trade union representation. Regarding trade union representation, both V&M and Plantar use procedures that practically prevent the workers from organising in such companies, against the provisions of ILO Conventions 87 and 98. From the testimonies of the interlocutors, 21 when the union members enter to call assemblies or to distribute pamphlets to the workers, they are called to order, and even asked to leave the work site. Another illegal practice followed by the two companies is the distribution of workers in different territories and the high rotation to which they are subject, making it difficult for them to join a specific rural workers union (STR). At all the interviews we had with the workers of both companies, their fear of losing their job or of being persecuted for joining a rural workers union was noticeable, also the fear that their names might be quoted in our report. The most active union workers are constantly sent far from their union bases. We were able to observe that in cases where they are carrying out “rural work” the worker leaders are registered as if they were urban workers to prevent them from becoming rural union members. Furthermore, we were informed that, according to FETAEMG, V&M chooses the rural unions with which it will negotiate. There have been cases of workers receiving an extra bonus for belonging to certain unions that have signed agreements that are favourable to the interests of the company, with clauses violating labour laws. The unions that have attempted resisting end up by having pressure put on them by the members themselves, who do not want to loose the benefit of the extra bonus offered by the company. In this case, there is also non-compliance with FSC principles 1.1 and 1.3. Regarding training provided by the companies, various of the workers interviewed alleged that this is purely symbolic or derisive. If the worker has his own chainsaw, they outsource him and he subcontracts and pays an assistant (sub-sub-contracting) who learns just as he himself learnt, through observation and practice. Most of the accidents are considered as “personal errors” and the Labour Accident Communication, (CAT) is not filled in. Therefore, the workers are not paid compensation and only in extreme cases are they removed from their functions and pensioned off. In the case of V&M, the workers receive a basic food basket, but if they are off from work one day, even if the sickness is serious and they have a medical certificate, they loose the right to this benefit and feeding their family is compromised for one month. A simple reading of the Collective Labour Agreement of 26/09/2001, signed by V&M and the Rural Workers Union of Pompeu, Bom Despacho, Caetanópolis, Curvelo, Felixlândia and Paraopebas, with the help of the Minas Gerais Federation of Agricultural Workers (FETAEMG) shows a series of clauses flouting Labour laws. Furthermore, we also observed that Brazilian labour law is not complied with regarding the worker’s health and security – not only are their lives, but the very survival of their families is placed at risk. From the various interviews with people who are presently working for V&M and Plantar and former workers of these companies, some on sick leave, and others with disability pensions, we were able to note that the worst accidents mainly take place in the maintenance sector and in the plantations. The workers complain about the drinking water that, according to them is of very poor quality in the companies and their FMU. Regarding exposure to the sun, the companies refuse to respond to the constant request of the workers exposed to the sun all day long regarding the need for sun block. There are also cases of people with disability pensions, due to brain problems caused by ant poison, mainly Mirex. Among the symptoms, we noted were speech problems (two people interviewed) and a case of hospitalisation for six months in a mental home outside Minas Gerais, at inland Sao Paulo. We also noted a high number of lung and back problems among the charcoal workers and Repetitive Effort Lesions (REL) in women working in the nurseries, in spite of which they continue working, many with swollen and bandaged hands. From what we could observe, most of the workers affected do not know why their health is seriously affected and they do not receive any information on the subject. V&M does not have a health care policy for people with disability pensions or for those 22 who have been dismissed and their families. As to Plantar, it does not even provide medical assistance to registered and active workers. Although a large number of people working for V&M and Plantar are women, there is no specific gender policy, which causes prejudice to women and their children. None of FSC principles and criteria specifically addresses safeguarding the health of women working in the certified companies, as they should do. Thus, the right to day-care centres for children is violated. As there is no daycare centre near the work place, as soon as they return from maternity leave, the workers find it practically impossible to continue breast-feeding their babies as they usually leave their homes at 5.30 in the morning and get back at 7 o’clock at night. Therefore, breastfeeding is compromised, contributing to raising the malnutrition rate in the region. In addition to a considerable number of women workers showing clear symptoms of REL, we also received complaints about rheumatic diseases, probably caused by the constant manipulation of freezing water and exposure to a very cold working environment in the wintertime. Regarding labour, transport and security conditions, we observed the precariousness of the two companies and their contractors. Transportation of workers is done in old and unsafe vehicles. Furthermore, all the workers interviewed complained that their demands regarding transport were ignored: every day they have to wait almost an hour after work for the companies to take them back home. We received complaints that the DRT and the local hospitals (with which V&M has an agreement and to which it provides financial assistance), and local politicians, end up by being co-opted by the companies as they are feared and carry out the role of the most powerful actors in the region. PRINCIPLE 05: Benefits from the forest Forest management operations shall encourage the efficient use of the forest’s multiple products and services to ensure economic viability and a wide range of environmental and social benefits. The V&M and Plantar companies do not comply with this principle. Regarding eucalyptus plantations, they do not provide multiple products and services to the communities and local economy, but only eucalyptus timber for charcoal, with the possibility of some additional uses, but on a very small scale. Since the eighties, there have been mass worker dismissals, showing that it is difficult to consider eucalyptus plantations as economically viable in terms of supplying jobs. Regarding the other areas of the V&M (107,560 hectares) and Plantar companies, predominantly Cerrado areas, it should be noted that the companies prevent access to the multiple products and services offered by this biome, enclosing areas and in this way, preventing their traditional use by the local communities, hindering the generation of employment and income. Most of the eucalyptus planted by V&M and Plantar are used for charcoal for the iron works and for barbecues. The sole beneficiaries of the eucalyptus plantations are the companies themselves. At the same time, according to trade union members, thanks to certification V&M recently started producing charcoal for barbecues, cuts of timber for wood ovens, tar and powdered charcoal, even for export. Another interesting and viable use of eucalyptus on a small scale is extraction of honey. Little by little, this will disappear due to the substitution of flowering eucalyptus by cloned eucalyptus. This guarantees greater productivity in terms of timber, of greater interest to the company, but prevents local communities from obtaining economic benefits. 23 Social benefits from eucalyptus cultivation and the production of charcoal have increasingly dropped due to the decrease in labour. The union members state that in 1985, the V&M Company still employed nearly 2,500 workers. Today it employs 600 workers, of which 100 belong to the company itself and 500 are outsourced, showing a very high level of dismissals. One of the main reasons is the introduction of the new ovens to make charcoal and machinery to cut trees. According to the report by CPI on the charcoal works, one of these machines substitutes 70 workers. The union members also state that there is a lack of other employment alternatives in the region. There is no company policy regarding reinsertion in the labour market for people dismissed. It is only while they work for the company, if they are not outsourced, that they manage to receive some kind of training. In the PS for V&M, SGS includes the following: “Minor Corrective Action” for the company (Minor 002 4.1.4): (“Certified companies must actively support and promote alternative job opportunities affected by the reduction of staffing in forest and charcoal activities. There is no formal programme to do this”) (SGS PS: page 34). According to the PS, the intention of this condition is to provide local trade with eucalyptus to benefit from other uses (such a wood for furniture) and in this way, lower unemployment. The most interested city in this respect was Curvelo as, according to the SGS, “the city is bankrupt and has no industry” (SGS PS: page 36). During our fieldwork, a Curvelo city councillor stated that there really had been some meetings to discuss the subject, but so far, nothing had happened because presently the company is unable to offer eucalyptus that is suitable for making furniture. It should be noted that at the end of the PS, SGS decided to exclude this conditioning, based on the preparation by V&M of a plan. It was noted that the existence of a plan and the organisation of some seminars do not ensure concrete action, that is to say, they do not help to ease the serious unemployment generated by the company. The traditional communities living in Cerrado zones where V&M and Plantar are installed had the customary habit of collective use of the Cerrado. The CPT, the CAA and the union members denounced that when V&M arrived, it started ocupying and fencing in Cerrado zones, even in the “high plateaux” (plains with low vegetation). These zones are of collective use, the local communities used to take their cattle to graze. They also call them “common grasslands” or “loose grasslands” and they are of fundamental value for the Cerrado inhabitants. Dayrell (1998) states that: “The food for cattle in the “suelta” (loose) Cerrado zones is quite diversified. In addition to native hay, the cattle feeds on an infinite number of roots and shoots that ensure its survival. At least 32 different species of plants that the cattle eat regularly were mentioned. In general, the cattle is only taken to zones of cultivated forage when they are about to give birth, at the height of the drought until the beginning of the rains (August/November) and later, in the middle of the rainy season (February/April). The rest of the time, whenever possible, the cattle is raised in open zones” (Dayrell, 1998). The local communities also used to harvest the region’s typical fruit, such as the pequi, mangaba, panan and others, in addition to medicinal plants. The land belonged to everyone. On fencing in the Cerrado zones, the companies generated conflicts with the local communities that could no longer benefit from an essential service provided by the native vegetation; the fences caused environmental, social and even cultural damage. According to the union members, the Canabrava community, which lost its collective pastures in the eighties due to the V&M Company, are still indignant today over this company policy. As a form of protest, they use openings in the fencing to 24 let the cattle in to graze, burn down trees out of “pure indignation” and make charcoal out of the company’s eucalyptus. In spite of having been fined by the State Forestry Institute (IEF), the dispute has still not been settled in a satisfactory manner. The pequi is a typical fruit of Cerrado zones and in general is sold informally in the streets of the cities in the region. According to the Montes Claros CAA, the pequi harvest may yield up to R$2 thousand per hectare of Cerrado and can be a perfectly viable activity, benefiting from its multiple uses. Dayrell (1998) states the following: “The fruit is harvested practically all the year round, but the main harvest coincides with the rainy season from October to March. It is mainly young people and women who harvest the fruit, but when it is for marketing, or to make oil or soap, the men help in the harvest and help to process the fruit. The fruit most marketed are: pequi, coquinho azedo, panan, murucuya, cajuzinho andcoco catole. Oil (rufão) is extracted and soap is made from other fruit (macauba and tingui). They are processed by hand and in general it is the women who do it with the help of the men. A family at the Tapera finca usually produces an annual amount of 300 litres of pequi oil. It consumes between 30 and 50 litres per year and sells the rest at prices ranging from R$ 2 to R$5 per litre. The harvest period provides fruit for the animals (fowl and pigs) with a certain regularity, mainly when the maize harvest is harmed by the drought.” (Dayrell, 1998). In Montes Claros, 8,500 tons of pequis are marketed during the harvest. Contrary to eucalyptus plantations, this activity is carried out without government support and in the framework of informal economy, although it generates employment and income for the population. It is along these lines that the state deputy, Rogerio Correia prepared the Pro-Pequi Law, promoting th cultivation, extraction, consumption, marketing and processing of this fruit and other and native Cerrado products. The PS by SGS on V&M and the SCS PS on Plantar, do not make any mention of this enormous potential for sustainable Cerrado use, where FSC should give priority to its certification strategies. PRINCIPLE 06: Environmental impact Forest management shall conserve biological diversity and its associated values, water resources, soils and unique and fragile ecosystems and landscapes and, by so doing, maintain the ecological functions and the integrity of the forest. V&M and Plantardo not respect the native flora and fauna; on the contrary they helped to destroy the Cerrado, a unique biome, burning large areas to produce charcoal and then planted eucalyptus in the seventies and eighties, as did practically all the companies. This process caused impacts affecting the local population, flora and fauna up to the present time: the deterioration in the quality and quantity of water resources, the disappearance of fauna, the predomination of monocultivated trees, the erosion, the application of agrochemicals to extensive monoculture plantations, including a herbicide that FSC prohibited. There is not a single Environmental Impact Assessment or Report (EIA/REIA), as required by Brazilian law. According to the Montes Claros CPT representatives, the V&M company, owner of 47,577 hectares in the region, arrived in the sixties, occupying Cerrado zones and removing the native vegetation with tractors and large chains. At first they used the Cerrado to make charcoal and latter planted eucalyptus. In the district of Bocaiuva, where over 33 thousand hectares of eucalyptus were planted, the natural sources, rivers and streams started drying up. Dayrell (1998) state that: 25 “The Cerrado with its peculiar soil and vegetation formation and favoured by underground fauna, was able to rapidly absorb rainfall, even the most intensive rainfall, and store it in underground water currents that could be 100 meters deep. The Cerrado soils’ capacity for aborbing rain water was quoted by the writer Guimarães Rosa, who had a deep knowledge of the Brazilian backwoods, in his work “Grande Sertão: veredas”: “The passing Cerrado. The Cerrado is her alone – the space. The sun. The sky not wanting to be seen. The hard sands. The little bad trees they are so mine. Does it rain there? It rains – and no puddles appear, currents do not form, it does not produce mud: in a few minutes, the whole rain runs inside the soil, like an entering oil (Guimarães Rosa, apud Luz & Monção, 1995: 3). Following deforestation, the rains frightened the inhabitants because of the quantity of mud and sand draged in from the Cerrado, obstructing the marshes and watercourses. Mr. Geraldo explained: “As the older people say, the eucalyptus is bad for the waters. But it is not only the fault of the eucalyptus, it is also the fault of logging that makes the water run towards the headlands and that is blocking the wells. Not to say that this is a whole subject on its own. You see, logging razes everything because of the erosion that comes and blocks all the wells.” They finished off the wild animals, an important source of proteins for the geraizeiros. An inhabitant who impotently watched it happen, tells us what he saw In this zone there were many deer, agouties, tatus, partridges, sariamas, parrots – there were many. Today you do not even hear a cricket singing in the eucalyptus. If one were to come, it would get sick for sure. All is finished. It was a deception! What was left retreated towards the corners where there was something green, and to day there is nothing to be seen.” It should be noted that, according to the PS for V&M, the mean annual rainfall in the zone of Bocaiuva is approximately 1,000 mm. A specialist on the subject, Walter de Paula Lima, one of the most important technical advisers to the sector of eucalyptus companies, stated at a conference in the State of Bahia on the establishment of the Veracel Cellulose company, that in eucalyptus plantations that are in zones where the annual average rainfall is under 1,200 the water balance can be unfavourable and that in this case, water supply will be lower than reflux and this can harm the soils and water springs. According to technicians and union members, the whole (Cerrado) region is a catchment area, providing the excellent conditions of this biome are harnessed. To explain the process of environmental destruction caused by the eucalyptus, the union members quote the case of the 5 thousand hectares Pe do Morro finca. V&M (at that time Mannesman Florestal Ltda.) purchased the finca with Cerrado vegetation and then pulled it up with tractors and chains to plant eucalyptus. Subsequently the small rivers Canabrava, Bom Jardim, Extrema, São Gregorio and Agua Boa dried up. The Tabatinga River which passes through the Pe do Morro finca, also dried up (see photo 4). The union members complained that there is no work being done to restore the rivers or to attenuate the erosion problems (see photo 7). We saw another small river called Vaquejado – this is an example that there are still small rivers with a good flow of water exactly where there are no eucalyptus plantations (see photo 8). At the Meleiro finca belonging to V&M in Curvelo, the river Meleiro is disfigured in various stretches of its bed, where the quality of the water and the flow considerably dropped (see photo 9). 26 We found dried up, degraded sources and eucalyptus plantations on lands that should be permanent conservation lands (see photo 10). Near the Meleiro finca, we found various streams that had become occasional and when we got there they were completely dried up, with dry and degraded sources. Some of the inhabitants interviewed were witnesses to the disappearance of various species of fish in the micro-estuary of the Boa Morte and Paiol streams and the Ribeirão River. The Plantar nursery is located some 12 km from Curvelo. According to the inhabitants, in order to install the nursery, the company deviated a hundred-year old route and thus achieved access to enough good quality water, fundamental for their work, using the waters of the Boa Morte river. The deviation in the route, made without consultations with the community, increased the distance the neighbouring communities have to walk by 5 km (see photo 11). Furthermore, to deviate the route, the company levelled off a watering place (see photo 12). On placing the drainage pipes without due care, they widened the riverbed at that location and made it higher, which changed the water regime of a drainage marsh. The activities at the nursery compromised the surface water in the riverbed and prevented the communities in the drainage zone from using the water as it was contaminated with agrochemicals and fertilisers from the nursery, which is not treated by Plantar. The inhabitants had to install cisterns, as they could no longer use the river water. A sign on the edge of the plain indicates that there is a project under study to restore the Boa Morte river (see photo 13). However, we were able to observe that such a project is limited to abandoning the zone in favour of the eucalyptus plantations. In the municipality of Felixlândia, there is a spring called Cabeceira do Buriti in a clear process of degradation. The small local community is concerned over the Buriti River. The water level of the adjoining reservoir has dropped by almost 2 metres (see photo 14) and its flow has decreased almost 50%. According to the inhabitants, the water supply has fallen since the implementation of the Plantar eucalyptus plantations on grazing lands in the catchment area of the spring water. The inhabitants, which have been there for over 40 years, were never consulted by the company to discuss the subject. They are afraid that they will have to abandon the region if the problem persists. They also mentioned the problem of the application of weed killers before the plantation of eucalyptus, when they learnt of the death of fish, sariamas and rheas. There was never any communication by the company on this use of weed-killer. Finally, they maintain that, to the contrary of agriculture, eucalyptus does not represent a source of employment in the region. According to the Montes Claros CAA, V&M recently purchased land with eucalyptus on it from the Reflorage company, which established itself in the region in 1992. The environmental impacts of this eucalyptus plantation gave rise to a major mobilization of the peoples in the communities that depend on the Richão river: Montes Claros, Mirabela, Coraçao de Jesus and Brasilia de Minas. The local committee for the defence of the Riachão river, the flow of which had considerably diminished, made the following declaration in a letter disseminated on 13/07/2002, under the title of “Riachão letter of commitment”: “The implantation of eucalyptus monoculture and the major irrigation projects brought with them disorderly deforestation, an abusive consumption of water and intensive use of agrochemicals, leading to the extinction of the river source, causing prejudice to nearly 18 thousand people and 3 thousand families” (Riachão letter of commitment, 2002) 27 Along with the purchase of the Reflorage land, V&M inherited an enormous socio-environmental debt towards these families, which has not been definitively solved to date. Due to the diminished river flow, only 12 large estate-holders who live in the zone where the river passes, immediately after the eucalyptus zones, are able to benefit from the waters of the river, making the lives of the 3 thousand families who live downriver very hard. Based on its fieldwork during May and June 1998, in its PS for V&M, SGS affirms that the company “uses relatively few chemicals and is committed to minimising the current use while seeking alternatives) (RP SGS: page 21). Additionally, SGS maintains that (the chemicals used by MAFLA (read: V&M), in general, are not particularly toxic” (RP SGS: page 22). Therefore calls our attention that only in the second monitoring operation in February 2001, does SGS report that the company uses two agrochemicals – the fungicide benomyl and the weed-killer oxifluorofen – two products that FSC prohibited in its provisional policy of the year 2000, considering that they were toxic and residual, according to SGS itself. During the third monitoring in December 2001, V&M stated that they were no longer using benomyl, but that they continued using oxifluorofen and that they had requested an exception from SGS, which in turn, had sent the request to FSC International. We would like to point out that all this is an unmistakable sign that eucalyptus does not adapt well to the Cerrado biome and take the opportunity to recall that in a study by Filgueiras and Pereira, disseminated by the University of Brasilia, 419 species of fungus associated to thousands of Cerrado plants were enumerated (BDT, 1995). Furthermore, the question is how is it that SGS only discovered this matter, which would appear to be serious, at the second monitoring? That is, nearly 3 years after the certification visit. There are two options: either SGS did not correctly assess the agrochemicals applied at the time of certification, or V&M omitted this information at the time. We also ask ourselves, what position did FSC International adopt? We believe it must have accepted the exception requested in December 2001, as during our field visit in October 2002, from the notice boards outside the eucalyptus fincas (see photo 15), we saw that V&M continues to use the seal,. Various people from the local communities and union members interviewed confirmed that V&M uses the method of spraying from a plane. The company maintains that it is only for the application of booms? However, the community and the trade union affirm that they have observed the death of fish and cattle following spraying by plane, which strengthens the suspicion that agrochemicals are applied this way. The trade unionists have also denounced the fact that the company uses tractors to apply ant-killer; thus substituting manual application that obviously represents more expenditure on labour. According to our informers, the consequence is an increase of the products used, that is to say, an increase of the environmental impact. In the third monitoring report by SGS in 2001, it is noted that there has been an increase in the use of ant-killers. However, V&M maintain, “The use is variable, according to the characteristics of each plot of land and species of eucalyptus” (third SGS monitoring report, page 5). According to the PS, V&M lets the understory grow after a year or two to increase biodiversity. At the Pe do Morro finca at Bocaiuva, we were able to observe that there were eucalyptuses approximately 4 years old, without any understory (see photo 16), that is, without any biodiversity. According to a former worker of V&M in Curvelo, as an environmental policy the Company uses a machine to recover the tar from charcoal oven smoke. The tar is stored in a 20-thousand-litre tank. Sometimes the tank is filled before the tank truck goes by. When this happens, the former worker 28 stated that they bury the excess tar in a well and contaminate the environment. Additionally, on cleaning the machine, they spill tar residue on the ground. According to the PS for V&M, the company has adopted a System of Environmental Management for its areas, a sort of self-monitoring. It is worth noting that the company refuses to hire a team of specialists to carry out an Environmental Impact Assessment and Report (EIA/EIAR), a requirement of the National Environmental Council (CONAMA) in its resolution 001/86, thus hindering the work of the state’s environmental authorities, of the IEF and the State Environmental Policy Council – COPAM (also see Principle 1), according to information from an IEF employee who did not want to be identified. The company is only willing to deliver a Report and Plan for Environmental Monitoring (RCA/PCA) which consists of a superficial analysis, without considering measures to contain negative impacts. Precisely what is important is to contain the negative impacts that are many and serious, as became evident during our fieldwork. It should also be noted that Plantar does not have an EIA/EIAR either. PRINCIPLE 07: Management plan A management plan – appropriate to the scale and intensity of the operatiions – shall be written, implemented and kept up to date. The long-term objectives of management and the means of achieving them, shall be clearly stated. The companies comply with this principle regarding the eucalyptus zones, but there is no consolidated management plan for the zones without plantations. According to the PS for certification, there is a very clear eucalyptus management plan for the V&M’s 235,886 certified hectares and for Plantar’s eucalyptus. However, for the 107,560 hectares of V&M, which are not zones planted with eucalyptus, but mainly Cerrado zones, there is no management plan. On the contrary, a policy exists to avoid the use of the services provided by this extremely rich biome. This policy prevents sustainable exploitation that could benefit the local communities. As stated in other parts of this report, there is a policy to isolate these areas from the local communities, causing indignation and dissatisfaction among the inhabitants, who have always used them in a collective way. Neither in the SGS report on V&M, nor in the one by SCS on Plantar, have we been able to find any element delving into the traditional Cerrado management made by the local communities, a subject that has been well studied and is known by entities such as the Montes Claros CAA. Furthermore, the SP for V&M states that: “field visits showed that though some of these areas are very valuable natural vegetation in a wellpreserved state, other areas are very degraded” (RP SGS: page 20). Our fieldwork enabled us to share this opinion: there is a strong indication that in the areas not under cultivation, no type of management is carried out. Regarding Plantar, the SP does not make any clarification as to the percentage of the area it intends to have certified that is covered with native vegetation. It was only after a requirement by SCS regarding reserve management that it became clear that in the year 2000, two years after certification, the company purchased neighbouring fincas with natural Cerrado cover to add them to 29 the certified area and thus reach 20% of legal reserve – 20% of the property, which according to Brazilian Forestry Law, must be conserved. This means that when the company obtained certification, it had few reserve areas, less than the requirements of the law, and no management plan. PRINCIPLE 08: Monitoring and assessment Monitoring shall be conducted – appropriate to the scale and intensity of forest management –to assess the condition of the forest, yields of forest products, chain of custody, management activities and their social and environmental impacts. During the field visits and visits to the local communities and organisations, we did not find proof of a precise and careful monitoring of the social and environmental impacts of forest management activities. The chain of custody should be constantly monitored. We did not observe any monitoring of the environmental impacts in Plantar and V&M lands. We did not see any signposts indicating the existence of sources, watercourses, lagoons, marshes, streams and rivers, nor their names, which by law should be kept with their respective Areas of Permanent Preservation (APP). Monitoring of watercourses must include measurements of the water level to control variations. We did not see gauges anywhere although practically all the watercourses had been degraded or become occasional and during the field visit, we saw many that had dried up. If the companies had had a plan to monitor social impacts, for example concerning collective grazing lands that were taken away from the local communities, and the precariousness of jobs resulting from outsourcing, certainly these real impacts we observed during our field visit would have been solved. However, although the companies may have detected such problems, why are they not included in the PS? That is, what is the point of having a monitoring plan if it does not lead to concrete action based on problems observed? Regarding the chain of custody, there are doubts about both companies. The Environmental Control Permit attached to this report shows that V&M do Brasil still purchases native charcoal. This shows that there is an official chain of custody: V&M plants the eucalyptus, makes the charcoal and then transports it to the V&M do Brasil factory, in addition to using it for other applications, such as powdered charcoal, charcoal for barbecues and cut and packaged firewood. Furthermore, there is another parallel chain of custody, which starts with the burning of the Cerrado, the purchase of charcoal by local trades-people and transportation to the V&M factory in Bello Horizonte. Regarding Plantar, it is interesting to note that only the certified plantations, less than 5% of the company’s area, serve to make charcoal for barbecues. The rest of the areas are devoted to charcoal for the iron works. Due to the complaint against V&M and the similarity of both companies, in addition to the lack of inspection observed in the field, it is necessary to carry out an urgent auditing of Plantar’s chain of custody to ensure that the company is not mixing charcoal for barbecues with charcoal for the iron works. We stress the enormous difficulty of distinguishing and inspecting these destinations as we are dealing with the same product: charcoal. Summing up, the issue is the following: charcoal for the ironworks, charcoal packed and sold directly to the consumer or charcoal for any other destination – how can we ensure that the charcoal with the FSC seal is precisely the charcoal from timber from certified management units? In the case of Plantar, this guarantee demands permanent monitoring, as the SCS certified units are scant in 30 relation to the rest of the company’s plantations. It is evident that a plan or system for selection and differentiation of the timber, on its own, is not an effective guarantee. The company may have a detailed plan making it possible to define from what land or even from what tree the charcoal is produced, but this on its own does not guarantee that timber from non-certified FMU, or even native timber from the Cerrado is not being used. According to an “invoice” we obtained during our fieldwork, V&M do Brasil still purchases and uses charcoal made from timber from the Cerrado to the north of Minas Gerais. Some lorry-drivers we interviewed told us that between 10 and 15% of the charcoal they transport to V&M do Brasil comes from the Cerrado. The lorry-drivers were a fundamental source of information for those who study and investigate the “charcoal sector” in Minas Gerais – the CPI, the MPT, the DRT, etc. – but neither SGS nor SCS seem to have interrogated them on the two companies they were assessing. Save for a purely technical, abstract and conceptual plan, there is no guarantee that the certified charcoal (finally, it is this charcoal that has the “seal” as a symbolic message to the consumer) really comes from the management units assessed. In the case of Plantar, external and independent monitoring is essential, as it did not certify most of its plantations. In the case of V&M which certified all its FMU, why purchase charcoal coming from the Cerrado? PRINCIPLE 09: Maintenance of high conservation value forests Management activities in high conservation value forest shall maintain or enhance the attributes which define such forests. Decisions regarding high conservation value forests shall always be considered in the context of a precautionary approach. Presently V&M has not managed to satisfy this principle as it is only over the past few years that it has started, for the first time, a process of systematisation of the fauna and flora elements in areas not planted with eucalyptus. SGS monitoring leaves doubts on the availability of sufficient data in order to define high conservation value Cerrado zones, with regard to their fauna and flora. Additionally V&M and Plantar should necessarily consider the local communities and their deep knowledge of this biome to make a sound definition of such places. According to the PS for V&M, it was necessary to apply Major Corrective Action (Major CA) in order to monitor systematically information on some species of fauna within the areas, and to assess the impact of activities carried out by the company in the plantations. In response, the company contacted the Federal Universities of Viçosa and Minas Gerais, which submitted a proposal to gather data with a view to a subsequent monitoring plan. Such action, in addition to some internal measures in the company, turned the Major CA into Minor Corrective Action (Minor CA). During the second monitoring visit in February 2001, over two years following certification, the SGS report maintains that (“a meeting was held with the research team from the UFLA (read: Federal University of Lavras) at which progress on this large-scale, extremely valuable and pioneering research work was discussed” (2nd SGS monitoring: page 4).What is surprising is that this University was not involved in research on the fauna, but on the flora (see below). During the meeting, UFLA stated that less than 50% of the over 1.500 plots of Cerrado had been studied, which led to SGS again turning the Minor CA into a Major CA, as so far, no concrete proposal for monitoring was available. The new Major CA demanded that the company prepare a realistic plan to finalise the survey work and start monitoring. During the third monitoring visit by SGS, ten months later, it was observed 31 that a monitoring plan had started in May 2001, that is to say, three months after the second monitoring, when over 750 plots had still not been studied. It should be remembered that the company’s area is located in a very large geographical zone, making fieldwork very difficult. Summing up, what we are questioning is the lack of precision by SGS regarding monitoring of this issue, and also the conclusion reached by the survey work and the fact that monitoring of fauna was started in such a short period, without SGS having made any type of comment on or questioning of the contents of the survey and the monitoring plan. However, they have been holding the FSC seal for nearly four years. SGS demanded another Major CA to gather data, map the native vegetation and protect it in the company’s areas through a programme denominated “Programme for management of the Cerrado”- (SGS PS: page 43). Regarding this Action, the company established an agreement with the Federal University of Lavras (UFLA) to carry out this work over a 24-month period. Because of this initiative, the Major CA was substituted by a Minor CA. In the first monitoring visit in November 1999, the company estimated that the field survey would be ready at the end of 2000. However, during the second monitoring visit in February 2001, it was observed that less than 50% of the fieldwork had been carried out, that is, plans had not been fulfilled. Therefore, once again, SGS decided to convert this Minor CA into a Major CA requiring a realistic plan to finish the field survey and start the management plan for Cerrado zones. V&M planned the preparation of the management plan for June 2002. During the third monitoring visit in December 2001, the survey of flora had been concluded, that is to say, in ten months they managed to finish over 50% of the fieldwork. According to the SGS, they also established management standards for each area according to the type of alteration noted and the corresponding corrective actions adapted to each situation. In this case, we can only conclude with a questionning of the speed with which the work was finalized, without any objection by SGS, not even regarding the contents of the management plan. In all the research work on the value of Cerrado zones, including the fauna and flora, at no time is it suggested to consult the local communities or to get them to participate. The local communities are the real specialists in the region. Dayrell (1998) tell us that: “Furthermore, on studying typical family agro-ecosystems, we saw how they quite frequently make us of between 26 and 78 different species of native plants. One of the families investigated, showed a knowledge of 141 different plants: their use (for food, medicinal, or others), their most common location in the landscape, their form of reproduction (seeds or cuttings) and, in many cases, the month in which they flower or their fruit is harvested (2)” (Dayrell, 1998). Let us compare this quotation with what the PS made by SGS on V&M has to say: “On (V&M) non-working days, there were three main objectives: (…) to provide some kind of environmental education: in general in the local agricultural sector the degree of knowledge on soil and water conservation and protection of the flora and fauna is not very high. Non-working days are an opportunity for MAFLA management (read V&M) to explain to the local farmers the importance of such issues” (SGS PS: page 39). However, it is precisely the local farmers who should be the “educators” as they have a good knowledge of the environment and know how to use and protect it, while the companies have burnt large areas of Cerrado, according to various testimonies of the inhabitants. In the words of the writer João Guimarães Rosa, “A teacher is not one who has always known, but the one who suddenly learnt.” (Guimarães Rosa, 1985). Dayrell (1998) writes the following: 32 “…gathering firewood is nearly always done by choosing the oldest, driest or fallen wood. When it is cut down, this is never generalised (except for tilling or for forage), and it is usually cut level, enabling renewal. It would seem that cutting is done randomly. However, one informant stated that when they are going to cut wood, if it is an uncommon tree, they always make sure that there is another, younger one of the same species that can substitute it. Once I saw a geraizeiro (read, inhabitant of the Cerrado), pulling up plants in a grassy zone. I asked him why he did not pull up some species and he answered by telling me of the use of the species he had not pulled up” (Dayrell, 1998). The so-called “common grasslands,” located in the high plains, have an enormous social and cultural importance, because they were areas of collective use. According to testimonials we gathered in Bocaiuva, the occupation and fencing in of such areas by V&M, even now causes dissatisfaction among the local communities. Regarding Plantar, SCS stated that in the year 2000, the company purchased other lands, for a total of 2,975 hectares of native vegetation, to satisfy a legal requirement of the Brazilian Forestry Code. According to SCS, the company classified the land by conservation area, preservation area and legal reserve area, without any further comments. PRINCIPLE 10: Plantations Plantations shall be planned and managed in accordance with Principles and Criteria 1 – 9, and Priciple 10 and its Criteria. While plantations can provide an array of social and economic benefits, and can contribute to satisfying the world’s needs for forest products, they should complement the management of, reduce pressure on, and promote the restoration and conservation of natural forests. For various reasons, V&M and Plantar’s tree plantations do not satisfy FSC principles (from 1 to 9), according to what we have set out in this report. Most of the plantations are on land with native Cerrado vegetation, which helped to destroy this threatened biome and caused social, environmental, cultural and economic impacts. Furthermore, we denounce the fact that Plantar felled a Cerrado zone in the year 2000 and that V&M continues to purchase charcoal made with timber from the Cerrado to produce steel, a practice that is absolutely contrary to FSC Principle 10. This report shows that the companies investigated, V&M and Plantar, did not comply with various elements of FSC Principles 1 to 9, making certification illegitimate. Among such elements, we include environmental, social, economic and cultural impacts. Many informers complained that the first thing these companies did was to burn the Cerrado to obtain charcoal and then plant eucalyptus. However, for FSC, this fact has no influence on certification as deforestation took place before November 1994. Nevertheless, the impact of the total destruction of this biome on the cultivation zones is felt up to today, mainly by the local populations who lost much of their flora and fauna and their water resources and suffered from the consequences of the application of agrochemicals. Far from protecting the still remaining native vegetation, the thousands of hectares planted with eucalyptus end up by becoming a hazard. We would stress that according to the inhabitants of Curvelo, Plantar felled a Cerrado area of some 120 hectares, which it had purchased in 2000 in the zone of Lagoa do Capim. 33 According to the PS for V&M, at the time of certification, the company had not yet established the area to be cut and was using cultivation lands of between 30 to 50 hectares. The SGS demanded a Minor Corrective Action (Minor CA) to oblige the company to establish a fixed size. During the first monitoring by SGS, in November 1999, this Minor CA was excluded, as the company had established a maximum size of 24 hectares for cultivation lands. However, during our field work at the Pe do Morro finca in Bocaiuva, we saw several cultivation lands of between 41.62 to 48.89 hectares, as indicated by some small signs on the edge of the road (see photo 17). According to the PS for V&M, the company is opening up wildlife corridors every 500 metres in all the eucalyptus plantations. It was only on the last day of our fieldwork that we observed the existence of an wildlife corridor, exactly 25 metres wide (see photo 18). It should be remembered that one of the PS revisers questioned the effectiveness, for native fauna, of a corridor only 25 metres wide. This reviser, whose name does not appear in the PS, maintained, “Wildlife corridors should be at least 50-100 m wide to be useful.”) (SGS PS: page 43). The SGS reacted to this criticism by saying that the subject would be discussed during the monitoring visits. However, we did not find any further comment on the matter in the three monitoring reports disseminated by SGS. Various persons interviewed complained that V&M do Brasil, a company belonging to the same owner as V&M and which consumes charcoal produced by V&M, still purchases charcoal made from wood from the Cerrado and produced by large landowners and/or people occupying the restituted lands. The Cerrado, with its enormous biodiversity, is a threatened biome. A person interviewed who did not want to be identified, gave us a sample of the use that is made of native charcoal: an Environmental Monitoring Permit (see attached). This Permit, issued by the State Forestry Institute (IEF) on 25 October 2002, authorised the transportation of 60 metres of native timber from Curvelo to V&M do Brasil S.A. in Bello Horizonte. This steelworks uses charcoal as a source of energy for steel production. The use of native charcoal is an extremely serious action, due to the essential proposal that tree plantations should be renewable sources of timber, precisely to avoid the felling of native vegetation, in this case the Cerrado. According to some lorry-drivers interviewed, this practice exists because there is no type of inspection on the highway. We went from Curvelo to Montes Claros and were able to note the absence of any type of inspection. This fact is equally serious given the justification made by the company that their plantations help to conserve the Cerrado, when in fact the company does not comply either with what it disseminates or with what the Brazilian legislation establishes. Chapter 05: FINAL CONSIDERATIONS The aim of this report is not to lessen the importance of FSC or of forest certification in general. On the contrary, this work attempts to help achieve a fundamental objective that FSC has defended since its creation: to guarantee that consumers who purchases products with the FSC seal, can be certain that the product they are buying comes from a zone where the forests are managed in a sustainable way, with social, economic and environmental benefits in the local context where they are practiced. After having assessed the certification of V&M and Plantar S.A. – in 1998, V&M with over 235 thousand hectares became the largest company with the FSC seal for forest plantations in Brazil – we are totally sure that today, in the case of plantations, such certainty does not exist. 34 We consider that FSC members, who will be the first to receive this report, must examine – of course basing themselves on other studies and reports – in which cases the certification of forestry plantations needs to be corrected in order to ensure the seal’s credibility, taking into account the principles and criteria, but also the procedure adopted at present on certifying organisations and the way in which they carry out the certification process, a subject that is questioned in this report. As a contribution to this discussion, we would like the following to be considered: - - regarding local populations and economies, this case study clearly show the enormous contrast between the social, economic and environmental “poverty” of eucalyptus monoculture plantations and the social, cultural, economic and environmental “wealth” of managing a natural forest, in this case the Cerrado. For final consumers, it would be a lack of transparency and credibility if the product can bear the FSC seal without knowing whether the product they have bought comes from an “industrial” plantation of exotic species belonging to a mega-company located in the middle of the Cerrado or from a cooperative of local communities that manages the Cerrado and its endogenous species in a sustainable way. FSC would increase its credibility enormously if it were to establish a distinction between the certification of a zone with native vegetation (a natural forest, savannah, etc.) and a zone with monoculture tree plantations, two very different things. The need to establish this distinction is more evident if it is considered that FSC’s first nine principles and criteria were prepared for the management of native forests and not for the management of monoculture tree plantations. Principle 10 was prepared to address, specifically, the situation of plantations, but compliance with the nine first principles is always required. This report shows that many of the objections to the first ten principles are applicable to all largescale monoculture tree plantations certified by FSC. - Let us look at some examples: - benefits from the forest (Principle 05) are limited to a single one (eucalyptus for a specific purpose: charcoal, cellulose, etc.), generating conflicts with traditional and collective use of the native vegetation made by the local communities; - due to the substitution of native vegetation, the instrumentation of modern monoculture management never achieves the conservation of biodiversity and its associated values (Principle 06); on the contrary, it always causes significant impact on the quantity and qualaity of water, flora and fauna biodiversity and soil protection; - in the regions where plantations are installed, the economic and social benefits (Principle 10) of products such as charcoal aimed at steelworks or timber for the production of cellulose are insignificant if compared with the negative social impacts on the lives of the workers and the negative socio-economic impacts on the life of local communities. This is well documented in the publications of many countries where there are large-scale monoculture tree plantations. - the separation of the FSC seal – a new seal only for native forest products and one for tree plantation products – necessarily demands the preparation of new principles and criteria for forestry plantations. We believe that the basis for these principles and criteria can only be built on a wide-ranging debate on what is considered sustainable management in the context of modern silviculture. This debate leads to another, much more profound discussion: what type of sustainable society do we want? 35 - as NGO representatives from the environmental, social, indigenous and union areas, we believe that the new “sustainability” of large-scale tree plantations depends, primarily, on acceptance by the local communities; necessarily they will be the first to be invited to participate in the discussion, together with FSC members. Of course, no silviculture system is equal to the Cerrado biome, extremely rich in environmental, social, cultural and economic services. Furthermore, we are sure that the present model is very inadequate because it provides practically no benefit to the local population; on the contrary, it causes negative impacts. - we consider that this new model of silviculture must achieve certain diversity in the composition of tree plantations, that is to say, in the cultivated land and not through “wildlife corridors.” There is no doubt that the loss of homogeneity in the plantations will reduce the production of timber, but on the other hand, it will increase the possible social, environmental and economic benefits, in addition to ensuring a better ecological balance, as shown by agro-ecology. In this way, it will increase the insertion and adaptation of forestry plantations to the local environment, not only from an ecological standpoint but also from social, economic and cultural considerations. We hope that many members of FSC, consumer groups and company representative will want to take part in this well advanced discussion, with good results in various areas of agriculture. At the same time, we know that the market rationale, for example the cellulose market, makes it difficult to have this type of discussion on a model. Competition only admits discussion if it is to further increase productivity, without considering any other parameter. However, we believe that it is necessary to make this effort, although adhesion might be scant to start with, because we would remind everyone of those who, because of the present model of eucalyptus plantations and other large scale monocultures: - have lost their lands, their collective use land, their sources of survival; have had accidents or died in activities extracting timber and producing charcoal and have been poisoned by agrochemicals; have lost their sources of water and fish; have lost their employment in the companies have lost their childhood and their hope of a better life. Very often, these real impacts are due to the increasing consumption by consumers, mainly from the countries of the North. This is another challenge for FSC, if we want a truly sustainable future. We believe that FSC has two paths ahead: - - to continue certifying mega-plantations such as those of V&M and take over a large chunk of the market although receiving constant complaints that increasingly undermine its credibility; or to thoroughly revise its certification policy for forestry plantations and recuperate the legitimacy that so many people from the North and from the South and even us who have written this report, are still willing to endorse. 36 Notes: (1) This survey was made, based on a document prepared by the UFLa (Federal University of Lavras, 1995), “Survey of Cerrado plant species” showing a total of 249 plants recognised by the geraizeiros in the north of Minas Gerais. * Lands that do not have an owner, nor are they of public use, but are not incorporated to the private domain either (Translator’s note). * Name given to the region. The word geraizeiros is derived from this name: inhabitants of Os gerais. (Translator’s note). (2) This survey was made based on a document prepared by the UFLa (Federal University of Lavras, 1995), “Survey of Cerrado plant species” showing a total of 249 plants recognised by the geraizeiros in the north of Minas Gerais. (3) It is important to note that most of the native species of the Cerrado renew after having been cut. Bibliography - PARLAMENTO DEL ESTADO DE MINAS GERAIS. Ley 13.965/01. Creates the Minas Gerais programme for the promotion of the cultivation, harvesting, consumption, marketing and processing of pequi and other native fruti and products of the Cerrado. State deputy Rogério Correia. Bello Horizonte, 27-07-2001. - PARLAMENTO DEL ESTADO DE MINAS GERAIS. CPI das Carvoarias: relatório final. Diputado Adelmo Carneiro Leão, presidente de la CPI. Bello Horizonte, 11-06-2002. - BASE DE DATOS TROPICAL (BDT). Cerrado – impactos do processo de ocupação. Brasilia, WWF, 1995. - CARTA COMPROMISO DE RIACHÃO. Montes Claros, 13-07-2001. - DAYRELL, Carlos Alberto. Geraizeiros e biodiversidade no norte de Minas: a contribuição da agroecologia e da etnoecologia nos estudos dos agroecossistemas tradicionais. Thesis submitted to the International University of Andalucia. Ibero-American Headquarters, September 1998. - FOREST STEWARDSHIP COUNCIL (FSC). FSC Principles and Criteria. FSC, Oaxaca, Mexico, 2002 (www.fscoax.org). - FSC WORKING GROUP (FOREST STEWARDSHIP COUNCIL) IN BRAZIL. Padrões de certificação do FSC _ Forest Stewardship Council _ Conselho de Manejo Florestal em Plantações Florestais. Brazil, 2001 (www.fsc.org.br). - GUERRA, Cláudio. Meio ambiente e trabalho no mundo do eucalipto. Bello Horizonte, Associação Agência Terra, 1995. 37 - GUIMARÃES ROSA, João. Grande sertão: veredas. Río de Janeiro: Editora Nova Fronteira S/A (18ª ed.), 1985. - MINISTERIO PÚBLICO DE TRABAJO: Fiscalía Regional de Trabajo de la 3 ª Región; Coordinadora de defensa de los intereses difusos y colectivos – CODIN. Ação Civil Pública (con pedido de acción preliminar). Bello Horizonte, 03-06-2002. - RED SABANA DE ORGANIZACIONES NO GUBERNAMENTALES. Carta de Montes Claros. Montes Claros, 20-06-1999. - SCIENTIFIC CERTIFYING SYSTEMS (SCS). Sumário Público 01 – Plantar S.A. (Curvelo – Unise MG-02). Oakland (EUA), March 2001. - SOCIEDAD GENERAL DE VIGILANCIA (SGS) SILVICULTURA – PROGRAMA QUALIFOR. Forest Certification Public Summary Report: Mannesman Florestal Ltda. (MAFLA) (public summaries with reports of the first, second and third monitoring). London, 17-01-1999. - UNOS SÍ, OTROS NO. Política. Revista ISTOÉ, 15-07-1998. - UNIVERSIDAD DE BRASILIA. Cerrado, caracterização e recuperação de matas de galeria. Brasilia: Embrapa, 2001. - WWW.PLANTAR.COM.BR - WWW.VMTUBES.COM.BR Acronyms Major AC - Major Corrective Action Minor AC – Minor Corrective Action AMDA – Association for the Environmental Defense of Minas Gerais (acronym in Portuguese) PPA – Permanent Preservation Area CAA – Centre for Alternative Agriculture CAT – Communication of a Labour-related Accident (acronym in Portugese) COPAM – State Environmental Policy Council (acronym in Portuguese) CPI – Parliamentary Investigation Committee (acronym in Portugues) CPT – Pastoral Land Commission (acronym in Portugese) DRT- Regional Labour Office (acroym in Portugese) EIA/RIMA – Environmental Impact Assessment and Report (acronym in Portuguese) FETAEMG – Minas Gerais Federation of Rural Workers Trade Unions (acronym in Portuguese) FITIEMG – Minas Gerais Federation of Workers in the Extractive Industry (acronym in Portugese) 38 FSC – Forest Stewardship Council IEF – State Forestry Institute (acronym in Portuguese) MAFLA – Mannesman Florestal Ltda. (in 2000 it became V&M Florestal Ltda.) CDM – Clean Development Mechanism MG – Minas Gerais (State of Brazil) MPT – Public (Federal) Labour Ministry ILO – International Labour Organisation IPESCR - International Pact on Economic, Social and Cultural Rights ¿????? RCA/PCA – Report and Plan for Environmental Monitoring (acronym in Portuguese) PS – Public Summary Report of certification assessment SCS – Scientific Certification Systems SENAR – National Service for Rural Learning (acronym in Portugues) SGS – General Society for Monitoring (acronym in French) STR – Rural Workers Union (acronym in Portuguese) UFLA – Universidad Federal de Lavras UFMG – Universidad Federal de Minas Gerais FMU Forestry Management Unit UNIMONTES – Universidad Estadual de Montes Claros V&M – Vallourec & Mannesman Florestal Ltda. 39