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Profit sharing plan negotiation in Brazil
Lead NCPBrazil
Supporting NCP(s)Netherlands
DescriptionSpecific instance notified by the trade union Central Única dos Trabalhadores (CUT) regarding the activities of C&A Modas Ltd in Brazil.
Theme(s)Employment and industrial relations
Date6 Mar 2007
Host country(ies)Brazil
SourceTrade Union
Industry sectorManufacturing
StatusConcluded
Summary

Read the final statement issued by the Brazilian NCP concluding the specific instance – 17 May 2013


On 6 March 2007, the Brazilian NCP received a request for review by the trade union Central Única dos Trabalhadores (CUT) alleging that C&A Modas Ltd had breached the employment and industrial relations provisions of the Guidelines in Brazil by refusing to negotiate with the trade union over a profit sharing plan.

The NCP accepted the specific instance, and informed the Netherlands NCP. C&A responded to the trade union's claims by that agreements related to the profit-sharing plan had been negotiated in all locations in which there were employees and that the agreements would be concluded with the representatives of employees (employee committee), with invitation to local unions, as required by law.

After analysising the information provided by the company, in August 2008, the NCP requested additional information to both parties. The NCP received no response from the company or the trade union.

On 16 October 2012, however the NCP received a formal request from the trade union to conclude the specific instance. According to the union, C&A had recently opened negotiations related to a national agreement on the profit sharing plan and to build a permanent social dialogue with employees and their representatives. In May 2013, the NCP duly concluded this specific instance and issued a final statement.