Clothing Label M.Officer May Lose Its License Due to Slave Labour

[Judi Lynn]

11/10/2017 - 11H48

PEDRO DINIZ
COLUMNIST AT FOLHA
JOANA CUNHA
FROM SÃO PAULO
Though the decision can still be appealed, the application of São Paulo state's anti-slave labour law could lead holding company M5 Têxtil, which owns clothing labels M.Officer and Carlos Miele, to lose the right to sell its products in the state of São Paulo for up to ten years.

The Ministry of Public Labour Prosecution indicted the company following an investigation that found that the working conditions at its affiliates were considered analogous to slave labour. M5 Têxtil would be the first company in the fashion industry to be slapped with such sanctions ever since the bill, which was authored by representative Carlos Bezerra Jr. (PSDB), was regulated in 2013.

Members of the 4th Regional Labour Court in São Paulo upheld the sanctions that were applied by the first instance court, including a R$ 4 million fine (US$ 1.2 million) for collective moral damages, as well as an additional R$ 2 million fine (US$ 613 thousand) for social dumping, which is when a company becomes more competitive by subtracting labour rights in order to make production costs cheaper.

Following a request made to freeze R$ 1 million (US$ 307 thousand) in company assets - the request was subsequently deferred by a labour court - the Ministry of Public Labour Prosecution filed a lawsuit in 2014 in which prosecutors asked for a R$ 10 million settlement (US$ 3.1 million), of which R$ 7 million (US$ 2.1 million) referred to collective damages, while R$ 3 million (US$ 1 million) referred to social dumping.

More:
http://www1.folha.uol.com.br/internacional/en/brazil/2017/11/1934372-clothing-label-mofficer-may-lose-its-license-due-to-slave-labour.shtml