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Accord Reached in Brazil’s Paper Sector Stand-off

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6 March, 2006

An acceptable agreement was achieved in northern Brazil between workers represented by ICEM affiliate SINAP-CUT and Group João Santos. The Brazil-based company shut two of its subsidiaries near the town of Coelho Neto, the paper producer Itapagé SA and agricultural entity Agrimex SA. The company’s intention is to use contractors in these enterprises, and sacked 227 workers in the process.


Workers and their families, who were camped in front of the company’s Maranhaõ State regional headquarters, received a favourable agreement after dialogue between SINAP-CUT, the company, and the Court of Works of Caxias.

It calls for full wage payments, according to social protocols; extensive company-paid re-training and re-certifications for dismissed employees; maintaining the Coelho Neto schools by Group João Santos; and written rights of local workers for jobs within contractors assuming company work. SINAP-CUT credited “the strength and persistence of workers and leaders of Coelho Neto who with their force of fight had obtained these important advances.”