Slave-labour ruling lands Vale on ‘dirty list’

Brazilian authorities have placed Vale (NYSE: VALE) on a registry of employers who have treated workers like slaves. The so-called dirty list could affect banks’ assessments of the global miner. 

The move stems from inspections in 2015 on a Vale contractor, Sao Paulo-based Universo Online reported on Thursday. Officials found over 300 workers at the Mina do Pico mine were subjected to exhausting work hours and degrading conditions.

News agency Repórter Brasil reported the case of a worker who drove a truck for 23 hours with only a 40-minute break.

In a statement, Vale said that its inclusion in the list isn’t supported by a May 9 decision from the Brazilian Supreme Federal Court. Those judges sided with Vale regarding the 2015 infraction notices.

“Due to this decision, the case should return to the Regional Labour Court of Minas Gerais, which must issue a new decision on the nullity of the fines,” the company said. “Vale will take the necessary steps for its immediate removal from the register.”

Contract terminated

Vale said it implemented all corrective measures required by the government in 2015 and terminated its contract with the transport company. 

The drivers were transporting iron ore along Vale’s private road linking two mines in in Itabirito, Minas Gerais state. 

The company first challenged the infraction notices in Regional Labour Court, seeking their annulment. Although the workers were employed by a subcontractor, Ouro Verde Locações e Serviços, a judge ruled Vale was responsible.

Inclusion on the dirty list doesn’t impose commercial or financial penalties, but Brazilian and foreign companies and banks may refer to the list in their risk management assessments.