Economy

Labor inspectors fine Nespresso and Starbucks supplier

Labor inspectors found cases of wage theft on the family farm of Carlos Augusto Rodrigues de Melo — president of a billionaire coffee cooperative

coffee producer
Coffee workers had almost one-third of their wages illegally deducted by bosses. Photo: Lilo Clareto/Repórter Brasil

It was discovered in July of this year that nineteen coffee harvest workers — who had migrated from Vale do Jequitinhonha, one of the poorest areas in the state of Minas Gerais — had almost one-third of their wages illegally deducted by bosses. The deductions were related to the purchase of machinery and fuel to be used in the harvest — an illegal practice according to labor legislation. It just so happens that the farm in question belongs to the family of Carlos Augusto Rodrigues de Melo, who has been president of the world’s largest coffee cooperative, Cooxupé, since 2019. 

Labor inspectors discovered the violation on July 14, during an inspection of a harvest at the Pedreira Farm in Cabo Verde, southern Minas Gerais. After notification of the violation, the farm owners signed an agreement with the Labor Prosecution Service and the Public Defender’s Office to return the money wrongly deducted and pay each worker BRL 2,000 as compensation for damages.

Last year, in the midst of the coronavirus pandemic, Cooxupé members doubled their revenues — from BRL 160 million in 2019 to BRL 306 million. The cooperative made record profits in 2020, reaching BRL 5 billion, an increase of almost 20 percent compared to the BRL 4.2 billion earned in 2019. And yet, workers at the farm of Cooxupé’s president had BRL 500 deducted every two weeks from their payments — which vary between BRL 3,400 and BRL 4,000 a month.

The investigation was carried out by members of the Labor Prosecution Service, the Public Defender’s Office, and the Federal Highway Police. Agents found that discounts were applied to all workers’ wages during harvest season, which began in May.

Currently, Cooxupé has 14,500 members and sells coffee to major international brands such as Nespresso and Starbucks.

It holds several certifications, including from the Rainforest Alliance. When contacted, the certifier stated that the Melo family’s Pedreira Farm had been suspended from its program until an audit is conducted. The suspension also applies to the UTZ certification, which merged with Rainforest Alliance in 2018. (Read UTZ’s full statement here.)

nespresso coffee supplier
“Farm owners’ logic is to profit as much as they can from the highest precariousness possible,” says a union leader. Photo: Labor audit/MPT

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