Landless people's movement MST and Veracel
Indigenous people's land claims
Responsible outsourcing policy defined
Preparing for certification
Participation in research programmes
Investing in social projects
Veracel’s land use
Construction workers’ strike resolved
Veracel plantations and permit limits

Landless people’s movement MST and Veracel

In April 2004, the landless people’s movement MST occupied 25 hectares of Veracel’s land. During this occupation four hectares of plantations, planted in 2003, were destroyed. The occupation was part of a series of occupations that took place in different parts of Brazil during the spring. The occupation of Veracel’s land lasted five days. The MST left Veracel’s properties after negotiations with the local authorities. Veracel was not involved in the negotiations.

Indigenous people’s land claims

In autumn 2004 a demonstration by members of indigenous communities halted traffic, including trucks transporting wood, on a federal highway near the municipality of Itabela in Bahia. The demonstrators wished to speed up the demarcation by the authorities (FUNAI) of an area of approximately 70 000 ha north of the Monte Pascoal National Park, which is claimed by the indigenous communities. Of this area 2 651 hectares belong to Veracel, of which 1 019 hectares have been planted with eucalyptus, under the authorisation of the Environmental Resources Center (CRA), the government agency responsible for forest licensing in the state of Bahia.

When Veracel acquired the land in question in 1997, the local indigenous people had not expressed any claims on this area – and their claims were only made after 2000. The history of the ownership of the land concerned is clear and well documented.

The demarcation process also affects about three hundred farmers and their livelihoods, which makes the process very complex. Research is being carried out to establish whether there are remnants of ancient indigenous habitation in the area. Veracel will respect the outcome of the administrative process.

Responsible outsourcing policy defined

An outsourcing policy for Veracel was prepared in 2004. The policy aims to guarantee that legal requirements and Veracel’s sustainability approach are fully respected in all outsourced operations. The policy defines the benefits that each contractor has to provide for their employees, for instance. These benefits should be in line with the benefits received by Veracel employees. Some outsourcing contracts are already in line with this policy, and the target is to revise all existing contracts during 2005. Other targets for 2005 include the definition of monitoring procedures and the provision of training on the outsourcing policy for all the contract managers.

Preparing for certification

Veracel’s forestry operations have been preparing for CERFLOR certification during 2004. Certification is planned for mid-2005, and the pre-audit will take place in January. Preparations for the FSC certification process will start after the CERFLOR certification is completed. Preparations for the establishment of an ISO 14001 environmental management system for the new pulp mill will start during 2005. Veracel’s plantations are already certified to ISO 14001.

Participation in research programmes

Veracel is currently participating in several research programmes in partnership with universities, focusing on environmental management in plantations. Issues covered by research projects include minimising soil compaction, monitoring organic material in the soil and its relationship to productivity, monitoring soil water content, and the optimal use of fertilisers.

Investing in social projects

In the period of 2004–2005 Veracel’s social investments totalled BRL 21 million, partly financed by BNDES (The Brazilian Development Bank). A social investment plan has been prepared in co-operation with local municipalities and residents.

Veracel mainly concentrates its social investments in the fields of education and health. Examples include donating equipment to local hospitals; financing programmes for fighting leprosy, dengue and other serious diseases in the area; and providing funds for local environmental education and cultural projects.

In December, Veracel signed an agreement with the Government of the State of Bahia, the Ministry of Cities, the Ministry of Health, and the National Indian Foundation (FUNAI) to build housing and infrastructure in the indigenous community of Coroa Vermelha, in Santa Cruz Cabrália. This project will benefit 128 families through income generation programmes and the installation of sewage collection networks. The target is to end the housing shortage in the community over the next four years.

One of the main targets for 2005 is to establish indicators to evaluate the impacts of such social investments. This work is closely related to the UNDP co-operation, which will also provide further information to help channel Veracel’s social investments as effectively as possible in the future.

Veracel’s land use

The annual Atlantic rainforest restoration target of 400 ha was exceeded in 2004, with 411 ha restored. These restored areas have been carefully planned to form ecological corridors linking existing fragments of Atlantic rainforest habitat.

Veracel’s plantations have only been established in previously degraded areas. By the time Veracel’s first plantations were set up in 1992, about 95% of the Atlantic rainforest had been destroyed.

On the regional land use planning level, the State of Bahia is working on a zoning study to define optimal land use patterns. A commission is being established to oversee the study, and will include representatives of various stakeholders.

Construction workers’ strike resolved

In November 2004, a strike was organised by employees of the construction companies hired by Veracel to build the pulp mill. None of Veracel’s own employees participated in the strike, and Veracel took the role of a mediator in the conflict.

The negotiations to resolve the strike were conducted between the representatives of the contractors and their workers. Although Veracel was not directly a negotiating party, meetings were organised between Veracel and representatives of the National Paper Workers Union (Sinap) and the Bahia Pulp and Paper Workers Union (Sindicelpa), to discuss work issues covered by labour laws. Veracel forcefully restated its requirement that construction contractors should fully comply with all legal requirements, the majority of which are also stipulated in contracts signed with the contractors. The work stoppage was ended after 5 working days, when the workers approved proposals made by the contractors.

Veracel’s forestry operations employees are represented by the union Sindicato de Trabalhadores Rurais (STR). Veracel’s employees at the mill will be represented by Sindicelpa when pulp production begins.

Veracel plantations and permit limits

Due to the use of an incorrect surveying baseline, Veracel inadvertently planted 115 hectares of eucalyptus in an area which is less than 10 km from the coast, and thus outside the permited limits for the planting of eucalyptus. When the error was discovered, the trees were immediately cut, and the former plantation land has been converted into a preservation area.

A new law that sets conditions for plantations in the vicinity of national parks has given rise to a similar problem. It was discovered in 2004, that eucalyptus had been planted too close to the National Parks of Monte Pascoal and Pau Brazil without the necessary authorisation. Veracel had planted these areas in December 2003 with permission granted by the State of Bahia and authorisation from the federal environmental authority (IBAMA) to burn the residues of land for cleaning the area.

It has now become evident that in addition to the permits already granted by the State of Bahia and IBAMA, a separate authorisation should also have been obtained from IBAMA for planting eucalyptus. This separate authorisation is needed for plantations located in a 10 km zone around the national parks. Veracel has now belatedly requested this authorisation, and is awaiting a response from IBAMA.