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Brazil’s unit of Wal-Mart Stores (WMT.N) said on Friday it has temporarily suspended a commercial contract with Cosan (CSAN3.SA) after the sugar company was included on a government’s labor black list.
Cosan (CSAN3.SA)(CZZ.N), owner of leading sugar brands in Brazil, was included in December on a Brazil’s Labor Ministry’s black list after inspectors found workers in slave-like conditions in June 2007.
"Wal-Mart is a subscriber of Brazil’s national pact to eradicate slave labor since its creation... (and) reiterates that it strongly rejects any practice not consistent with human rights," the Brazilian subsidiary of the world’s largest retailer said in a statement.
Brazil’s state development bank BNDES on Thursday suspended loans to Cosan.
The company late on Friday said it had obtained an injunction determining its removal from the list.
The workers found in irregular conditions had been hired by a third-party cane-cutting company.