[English translation below article link].
https://sindpd.org.br/sindpd/site/noticia.jsp?IBM-integra-lista-de-33-multinacionais-investigadas-por-formacao-de-cartel-no-Brasil;-saiba-quem-sao&id=1728659964862
Workers may have been harmed by the scheme; Cade sees strong evidence of violation of the economic order
October 11, 2024
The Brazilian Administrative Council for Economic Defense (CADE) recently opened an investigation against 33 multinational giants suspected of forming a cartel in the country to "limit free competition" in the search for professionals in the Brazilian labor market. The list includes giants such as IBM Brazil, Coca Cola, General Motors, Avon, C&A, Nestle, Claro, Pirelli, Volskwagen, Votorantim, Monsanto, Vale, among others.
CADE says that "the conduct under investigation affected the Brazilian labor market involving multinational companies." The anticompetitive conduct allegedly occurred at least as of 2004 and lasted until at least the beginning of 2021. In a leniency agreement, the agency discovered that the cartel shared information about workers' salaries and benefits. There is "strong evidence of a violation of the economic order," according to the agency.
"There is strong evidence, to date, of anticompetitive conduct involving the exchange of sensitive commercial information about the labor market. The sharing of commercially and competitively sensitive information includes, but is not limited to, information about current salaries, vehicles, health insurance, transportation, food, employees who have been laid off, on vacation, on leave and retired, as well as education, health in general, parents and various benefits," states Cade.
The treatment was carried out through digital channels, according to the investigation, including via WhatsApp. "This conduct was made possible through the Salary Executive Group (GES) and the Benefits Administrators Executive Group (GEAB), within which activities were conducted in a highly institutionalized manner, with regular face-to-face meetings (and through virtual platforms, after the Covid-19 pandemic) and systematic exchanges of competitively sensitive information, mainly through surveys sent by email, via website and in WhatsApp groups".
Thus, no professional who was on the radar of this cartel would receive advantageous offers. "The conduct has the effect of limiting and hindering free competition between employers in the dispute to hire and retain the workforce available in the Brazilian labor market, with potential impacts that fall especially on the workforce subject to a group of companies, with national reach".
If these proceedings result in conviction, the fine could reach up to 20% of the companies' annual revenue.
"Competitors who reach an agreement regarding any aspect or element of their employees' remuneration are setting the price of labor and, in this sense, committing a cartel violation," concludes Cade.
IBM is the target of other lawsuits
IBM is the target of several lawsuits due to its conduct in Brazil. In September 2023, the company offered a job opening in which it stated that "the company will not hire people who reside in Minas Gerais", even if the position is remote. ( Remember the case )
The case became news and generated outrage on social media, being reported to the Public Ministry of Labor (MPT) by the Union of Information Technology Workers of São Paulo (Sindpd-SP), together with the Interstate Federation of Information Technology Workers (Feittinf). Upon learning of the case, the MPT filed a lawsuit against the multinational .
It is explained: IBM Brazil, although it is widely recognized as an information technology (IT) company, declares itself as a trading company throughout the country, curiously, a category that has a Collective Labor Agreement (CCT) that is much lower than the IT category, as a rule. However, the Minas Gerais courts considered that the company is, in fact, an IT company, requiring it to comply with the category's collective bargaining agreement in Minas Gerais.
This decision has already become final and cannot be appealed, and could serve as a precedent for a flood of lawsuits throughout the country. There are currently other lawsuits in progress, in which the unions are requesting that the company be classified as an IT company in other regions besides Minas Gerais, such as Paraná, for example.
List of companies investigated by Cade:
1 - Alcoa Alumínio SA
2 - Avon Cosméticos Ltda
3 - C & A Modas SA
4 - Cargill Agrícola SA
5 - Claro SA
6 - Coca Cola Indústrias Ltda.
7 - Companhia Siderúrgica Nacional
8 - Dow Brasil Sudeste Industrial Ltda.
9 - Danisco Brasil Ltda. (successor of Dupont Nutrition Brazil Ingredients)
10 - General Motors of Brazil Ltd.
11 - Goodyear of Brazil Rubber Products Ltd.
12 - IBM Brazil - Industry Machinery and Services Ltd.
13 - Kimberly-Clark Brazil Industry and Trade of Food Products...
14 - Klabin SA
15 - Arcos Dourados Food Trading Ltd.
16 - Monsanto of Brazil Ltd.
17 - Natura Cosmetics SA
18 - Nestle Brazil Ltd.
19 - Pepsico of Brazil Ltd.
20 - Philips of Brazil.
21 - Pirelli Commercial Tires Brazil Ltd.
22 - Sanofi Aventis Commercial and Logistics Ltd.
23 - Sanofi Aventis Pharmaceuticals Ltd.
24 - Serasa SA
25 - Siemens Energy Brazil Ltd.
26 - BAT Brazil/SouzaCruz Ltd.
27 - IPLF Holding SA
28 - Syngenta Crop Protection Ltda.
29 - Vale SA
30 - Volkswagen do Brasil Automotive Vehicle Industry Ltda.
31 - Votorantim Cement SA
32 - Votorantim Industrial S/A.
33 - White Martins Industrial Gases Ltda.