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More on Brazil from Disposable People.

Economics of Charcoal in Brazil
A small batteria can create and haul about $17,000 worth of charcoal in a month. The start-up costs and costs to feed and house workers are low. At this rate the batteria could afford to pay its workers a minimal wage and still turn a profit of 100%. So why don’t they?

It’s important to remember that gatos are simply employees of the real slaveholders. Kept on the edge of poverty and under pressure to make a profit, they are one step away from being slaves themselves. Some gatos who fail to make their quotas do end up working off their debts in the ovens of the batteria.

The pressure on the gatos makes them desperate to squeeze profit anyway they can. So if they can use workers for free, most do. In a tough business with high personal stakes, this is the most effective way for them to get ahead.

The real owners of the batteria and the slaves are able to keep their distance from the abysmal working conditions. They don’t see it; they may not even know about it; it increases their profits. So they have no motivation to do anything about it. Some of the land is still owned by the multinational companies who bought it in the 70s. Some has been sold to Brazilian companies. “These companies insulate themselves from any charge of slavery by arranging the work in a series of subcontracts … If central government inspectors or human rights activists find and publicize the use of slaves, the companies can express horror, dump (temporarily) the guilty gatos, tighten up security to prevent further inspections, and go on as before.”

Some Improvement
Although the situation is dismal, some progress has been made. In the mid-80s researchers and human rights activists began to expose the conditions in the camps. Gatos were recruiting whole families, and children were often the ones loading and unloading the ovens. In 1995 (progress takes time!) coverage by the BBC and The New York Times coincided, and American investors demanded change. Almost immediately women and children were sent from the camps by the gatos, who were under pressure from their bosses.

The Brazilian government set up an educational grant for some of the now totally destitute families. As a result, 1,000 children got to go to school for the first time. The government also set up a special camp to show the world the improved working conditions. This camp has electricity, plumbing, a school, and vegetable gardens as well as brick homes with tile roofs. Unfortunately, only one of these camps has been made, proving it was constructed for show for other countries.

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