Volkswagen penalized for using forced labor in Brazil
In a landmark decision, the labor court in Redenção, Pará, has ordered Volkswagen do Brasil to pay damages of 165 million Reais (approximately 26 million Euros) for alleged labor exploitation on Fazenda Vale do Rio Cristalino, a cattle farm owned by the company, in the 1970s and 1980s. This is the highest fine ever imposed in Brazil for modern slavery, as reported by the prosecution.
The accusations against Volkswagen do Brasil include the use of armed guards and a system of debt bondage, preventing the workers from leaving the farm. 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.
Investigations into the labor exploitation on Fazenda Vale do Rio Cristalino began in 2019, with the priest Ricardo Rezende documenting the slavery accusations. Father Rezende publicly raised the allegations in 1983 after workers who fled from the farm reported the conditions to him.
The company, Volkswagen do Brasil, has announced an appeal against the court's decision. They maintain a 72-year tradition and consistently uphold the principles of human dignity. However, they also strictly adhere to all applicable labor laws and regulations, as stated by the company.
The farm, Fazenda Vale do Rio Cristalino, was established with support from the military dictatorship and tax incentives. It was part of a national strategy for the development and settlement of the Amazon region.
An out-of-court settlement attempt failed in 2023, leading to the company being sued in December 2024. The labor court's order includes an instruction for Volkswagen do Brasil to continue its defense in higher courts. The company is also ordered to apologize to the victims.
The Brazilian subsidiary of Volkswagen is accused of employing workers under near-slavery conditions on a farm in the Amazon region. This news comes as a significant blow to the company's reputation, with many calling for a thorough investigation into the matter.
The fine imposed on Volkswagen do Brasil by a Brazilian court is a multi-million dollar one. This is a clear indication of the severity of the allegations and the court's commitment to upholding labor rights. The case serves as a reminder of the importance of ethical business practices, especially in sensitive areas like the Amazon region.
As the case progresses, it is hoped that justice will be served for the victims and that this incident will lead to improved labor conditions for temporary workers in the agricultural sector. The outcome of this case could set a precedent for future cases of labor exploitation in Brazil and beyond.
