Customer. Sugar mill, part of a multinational group.

Problem. Usina was accused of slave labor in relation to outsourced field workers. At the same time, the company was experiencing an avalanche of labor lawsuits sponsored by a single law firm, with a total labor liability of U$ 40 million. Fraud was suspected in the labor lawsuits.

Labor complaints

Solution. The investigation revealed that managers manipulated farm workers' time cards to reduce overtime. On the other hand, the law firm sponsoring the labor claims was receiving information from inside the mill about the dismissals before taking place with the contact details of the employees to be fired. The law firm paid bribes to company employees and had representatives inside the plant enticing employees. Wolfe Associates identified those responsible and identified deficiencies in agricultural management, Human Resources, and labor claims management. A redesign of internal controls, a set of countermeasures, and a strategy for the financial management of labor liabilities, including provisions and agreements, were developed.

The names of those involved were changed for reasons of secrecy. Investing in Brazil? You need to know who will manage your investment. Wolfe Associates can conduct profile studies of key executives.

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