Volkswagen facing significant penalties for alleged exploitation of workers in Brazilian factories under conditions akin to slave labour.
In a landmark decision, the labor court in Redenção, Pará, has ordered Volkswagen do Brasil to pay a fine of 165 million Reais (around 26 million Euros) for benefiting from slave-like labor on Fazenda Vale do Rio Cristalino, a subsidiary of the company. This is the highest fine ever imposed in Brazil for modern slavery.
The agricultural estate, established with support from the military dictatorship and tax incentives as part of a national strategy for the development and settlement of the Amazon region, has been under investigation since 2019. Father Ricardo Rezende, the regional coordinator of the Land Pastoral Commission, documented the case, revealing allegations of armed guards and a system of debt bondage used to prevent workers from leaving the farm.
Hundreds of temporary workers on Fazenda Vale do Rio Cristalino, also known as Fazenda Volkswagen, were subjected to long working days and degrading conditions. Investigations into these conditions led to the company being sued, with the lawsuit initiated in December 2024.
Out-of-court negotiations between Volkswagen do Brasil and the plaintiffs failed in 2023. The company, however, maintains that it consistently upholds the principles of human dignity and strictly adheres to all applicable labor laws and regulations. Despite this, the court has ordered the company to compensate the victims of slave-like labor on the farm.
The company has announced an appeal against the fine and compensation order. The compensation, when paid, will mark a significant step towards justice for the victims who endured these horrific conditions decades ago.
The investigations against Volkswagen do Brasil for the use of slave labor on the Fazenda Vale do Rio Cristalino in the 1970s and 1980s were initiated by human rights activists and investigative journalists who brought attention to these labor abuses. This case serves as a stark reminder of the need for continued vigilance and action against modern slavery.
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