During the rule of military dictatorship, millions were penalized for compulsory work in Brazil.
Volkswagen do Brasil has been ordered to pay a fine of 165 million Reais (approximately 26 million Euros) by the Brazilian labor prosecutor's office. This is the highest ever imposed in Brazil for modern slavery.
The agricultural property in question, Fazenda Vale do Rio Cristalino, is owned by a subsidiary of Volkswagen do Brasil. Investigations into the conditions on Fazenda Vale do Rio Cristalino began in 2019, with Father Ricardo Rezende, then the regional coordinator of the Land Pastoral Commission, documenting the case.
According to the investigations, hundreds of temporary workers on Fazenda Vale do Rio Cristalino, also known as Fazenda Volkswagen, were allegedly subjected to long working days and degrading conditions. Armed guards and a system of debt bondage were reportedly used to prevent workers from leaving the farm.
The fine was imposed due to Volkswagen's profiting from the illegal exploitation of workers during the time period of the military dictatorship in Brazil. The company is also required to apologize to the victims.
Out-of-court negotiations between the parties failed in 2023, leading to the lawsuit against Volkswagen do Brasil, which was initiated in December 2024. Volkswagen do Brasil stated that it consistently upholds the principles of human dignity and strictly adheres to all applicable labor laws and regulations. However, the company has announced an appeal against the fine.
Fazenda Vale do Rio Cristalino was established with the support of the military dictatorship and tax incentives as part of a national strategy for the development and settlement of the Amazon region. The search results do not provide information about the name of the person who initiated the investigation against Volkswagen do Brasil in 2019.
The labor court in Redenção, in the northern state of Pará in the Amazon region, ordered the fine. This ruling marks a significant step towards ensuring that corporations operating in Brazil adhere to ethical labor practices and respect the human rights of their workers.
