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Unformatted text preview: ans management does not expect that amounts of future severance indemnities will be material. 31 Aracruz Celulose S.A. Notes to Consolidated Financial Statements Expressed in thousands of United States dollars (unless otherwise stated) 16 Commitments and contingencies (a) Contingencies (i) Labor Proceedings The Company has been involved in legal proceedings with labor unions in respect of wage adjustments to incorporate inflation for the period February 16, 1990 through March 15, 1990. Such suits, however, have been denied by the Superior Labor Court, based on rulings by the Federal Supreme Court. The Company has received an unfavorable judgment in respect of a suit brought by certain industrial employees represented by their union, claiming additional compensation for alleged hazardous conditions at the mill. The Court’s decision established a framework for computing the amount of liability. Five other collective suits of the same nature have their respective technical expertise proceedings concluded although not yet decided by the local court. At December 31, 2000, the Company had recorded a provi...
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This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.

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