VW Challenges Brazilian Court Verdict on Slavery-like Work Conditions at an Amazon Farm
In a groundbreaking development, Volkswagen do Brasil has been ordered by a labour court in Para, Brazil, to pay a staggering 165 million reais (approximately 26 million euros) as compensation for holding hundreds of workers in slave-like conditions on a cattle ranch in the 1970s and 1980s. This penalty marks the largest fine ever imposed in Brazilian history, shedding light on a dark chapter in the company's past.
The court's ruling, which found Volkswagen do Brasil liable for the abhorrent treatment of its workers, was based on testimonies from a former employee, Jose Pereira. Mr. Pereira, who worked for Volkswagen do Brasil in the 1970s, alleged that workers were kept in a state of debt bondage and under constant surveillance by armed guards. He further claimed that beatings and shootings were common for those who tried to escape or were seen escaping.
Mr. Pereira's shocking revelations about the abuses on the ranch have not been previously mentioned in the media. He shared his experiences with German broadcaster ARD in 2022, painting a grim picture of the conditions on the ranch during the 1970s.
Volkswagen do Brasil, which bought land to start a cattle ranch in the 1970s with the encouragement of the Brazilian government, plans to appeal the court judgement. In a statement, the company maintained its 72-year legacy and consistently upholds the principles of human dignity, strictly complying with all applicable labor laws and regulations. However, they also expressed their intention to continue their defense in pursuit of justice and legal certainty before higher courts.
The abuses reported by Mr. Pereira were widespread on the ranch, according to his account. He stated that workers were indebted to contractors who recruited them on the ranch, and that guards would shoot workers who attempted to escape.
Volkswagen began winding down operations at the ranch in 1986. The court has ruled that Volkswagen do Brasil should acknowledge responsibility for their actions in the mid-1970s, a decision that marks a significant step towards justice for the victims of these abhorrent practices.
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