Well, for the brazilian vs french employment situation, this isn't fully true..
Conectiva employees certainly has a lower costs which is a valuable factor, but this is *not* what caused the people at Edge-IT to leave at all.
What happened was that most people at Edge-IT was offered a new contract with Mandriva, with a few people not being offered a new contract, which was the primary reason for most of the Edge-IT people leaving Mandriva.
Mandriva has hired several people in France since and is still actively hiring, me personally, I'm even from Norway, and if you know anything about Norway, you should know that hiring people from here is expensive (and pretty much everything in this country is) and that people are used to way higher salaries than most other places around. So while it's expensive to live in Norway, people generally doesn't suffer as people make good earnings.
The situation has actually been kinda amusing, making Sweden the Mexico of Scandinavia, due to high unemployment in Sweden these days, a *lot* of young people come from Sweden to take jobs Norwegians are too lazy to take themself, while Norwegians goes across the border to buy booze, sigarettes, pr0n, party ++ for extremely cheap prices compared to Norway.. :p
Also for what Conectiva concerns, after NGI investment got approved, their employees got considerable salary raises, at please to most people over there, so I would ask you not to make too many assumptions about exploitation, mandriva merger etc., especially not speculating on these in public.