Volkswagen Ordered to Pay $30 Million for Slave Labor Conditions in Brazil

In a significant ruling, Volkswagen has been mandated to pay a compensation of 165 million reais, equivalent to around $30 million, following a labor court's evaluation that the company had coerced farm workers in the Amazon into conditions akin to slavery during the 1970s and 1980s. This legal decision is recognized as one of the most critical cases of its type in Brazil.

This case originated in 2019 when a local priest provided extensive documentation he had gathered over the years, which led to renewed investigations and witness testimonials. In 2024, prosecutors formally charged Volkswagen, revealing that from 1974 to 1986, numerous workers at a cattle ranch and logging operation owned by Volkswagen's subsidiary in Pará state were subjected to inhumane working conditions. Approximately 300 men were recruited with questionable contracts to clear land for pasture, but they were held against their will through debt bondage, faced armed guards, lived in inadequate housing, and were given minimal food. Many of these workers suffered from malaria without receiving any medical attention.

The Labor Prosecutor's Office described these practices as among the most egregious examples of slave labor exploitation in Brazil's contemporary history. Judge Otavio Bruno da Silva Ferreira, in his ruling, confirmed that the evidence substantiated Volkswagen's ownership of the farm and that the working conditions met the Brazilian legal definition of slavery. He also remarked that the legacy of slavery continues to influence labor relations in Brazil today, emphasizing the importance of acknowledging this history to tackle inequality and inform just decisions in the present.

Despite the ruling, Volkswagen has denied any wrongdoing and plans to appeal the decision. The company's Brazilian headquarters maintains that it has consistently upheld human rights and labor regulations throughout its 72 years of operations within the country, emphasizing its commitment to social responsibility in its business practices. Notably, Brazil has a complex history with slavery, having been the last country in the Americas to abolish the practice in 1888, after importing more enslaved Africans than any other nation.