April 24, 2013

Brazilian meat firms to invest US$3.49 billion for new labour rules

Brazilian meat processors may have to invest up to US$3.49 billion to implement labour regulations which seek to improve workplace safety, and provide more frequent breaks for certain employees, according to a survey released by Brazil's National Confederation of Industry. 

The most controversial point of the new regulations concerns an increase of frequent rest breaks for employees in cold-room environments at slaughterhouse facilities. Previously, workers had the right to a one-hour break for lunch.

New regulations (known as NR 36) entitle workers to multiple breaks throughout the day, and creation of "thermal comfort zones." The breaks will vary based on shift length, and range from 20-60 minutes for shifts lasting six hours, up to 10 minutes after every 50 minutes worked for shifts of 10 hours. In all cases, the break time must be compensated as normal work time.

After signing the new regulation into effect on April 18, Brazil's Labour Minister, Manoel Dias, said that meat companies will ultimately benefit from the new regulations with productivity gains, due to sufficient rest for employees, and a decline in absences and sick leave.

Some companies will need to build entire new rooms or wings to their facilities to comply with the rules, which smaller processors may struggle with due to poorer access to investment capital, said Brazil's poultry processors and exporters association, Ubabef,.

Companies have been fined recently for violations of obligatory break times for workers, and temperature levels in refrigerated areas.

JBS SA was ordered to pay damages of about US$1.49 million in November 2012 for violations related to worker treatment in refrigerated areas at a Rondonia state processing plant.