Volkswagen’s Brazil unit has been ordered to pay $30.44 million in damages for subjecting workers to slavery-like conditions on a farm in the 1970s and 1980s. According to labour prosecutors, a labour court found that hundreds of workers at a Volkswagen-run ranch were forced into debt bondage, held under armed surveillance, and subjected to degrading work conditions.
The court’s ruling comes after failed settlement talks between Volkswagen’s Brazil unit and prosecutors, who alleged that the company showed no interest in negotiations. As a result, Volkswagen must now publicly acknowledge its responsibility in the case and issue a formal apology. The company is also required to implement a “zero-tolerance” policy for slave-labor conditions.
Volkswagen has announced that it will appeal the decision, stating that it “consistently defends the principles of human dignity and strictly complies with all applicable labour laws and regulations.” The company’s cattle ranching and logging ventures in the Amazon during the 1970s and 1980s were backed by government incentives under Brazil’s military dictatorship, as part of a broader state plan to develop the region.
The case highlights the dark history of labour exploitation in Brazil, particularly during the military dictatorship era. The ruling is significant, as it holds a major corporation accountable for its past actions and serves as a reminder of the importance of upholding human rights and labour laws. Volkswagen’s appeal and subsequent actions will be closely watched, as the company seeks to address its past wrongdoings and ensure that such abuses do not occur in the future.
The Brazilian government’s incentives for development in the Amazon region during the 1970s and 1980s have been widely criticized for their negative social and environmental impacts. The region’s history of labour exploitation and human rights abuses is complex and multifaceted, involving various stakeholders, including government agencies, corporations, and local communities. As Volkswagen moves forward, it will be essential for the company to demonstrate a genuine commitment to respecting human rights and labour laws, both in Brazil and globally.