NextFin news, SAO PAULO — On Friday, Brazil’s labor court ruled that Volkswagen must pay 165 million reais (about $30 million) in compensation for collective moral damages related to labor abuses at a company-owned farm in the Amazon rainforest.
The court found that between 1974 and 1986, hundreds of workers were subjected to slave-like conditions at the farm in Para state, which was operated by Volkswagen through a subsidiary. The farm was used for cattle ranching and logging.
According to court documents, approximately 300 workers were hired under irregular contracts to clear forest and prepare pastures. They lived in precarious housing, were monitored by armed guards, received insufficient food, and were forced to remain on the farm under a system of debt bondage. Medical care was not provided, even to those who contracted malaria.
The Labor Prosecutor’s Office initiated an investigation in 2019 after receiving extensive documentation from a local priest who had tracked the case for decades. Following witness testimonies and further inquiries, Volkswagen was formally charged in 2024.
Judge Otavio Bruno da Silva Ferreira stated in his ruling that the evidence confirmed Volkswagen’s ownership of the farm and that the working conditions met the legal definition of slave labor. He noted that slavery’s legacy continues to affect Brazilian society and labor relations.
Volkswagen’s Brazilian headquarters responded with a statement saying the company will appeal the decision. The company emphasized its 72 years of operation in Brazil, asserting it has consistently defended human dignity and complied with labor laws.
Brazil was the last country in the Western Hemisphere to abolish slavery in 1888 and historically enslaved more people from Africa than any other country, according to the Trans-Atlantic Slave Trade database.
This ruling marks the largest compensation for collective moral damages related to labor abuses in Brazil’s history, highlighting ongoing efforts to address historical injustices.
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