Volkswagen hit with record $30M fine for exploiting Amazon workers
What's the story
Brazil's labor court has slapped Volkswagen with a historic fine of 165 million reais ($30 million) for exploiting workers at a company-owned farm in the Amazon during the 1970s and 1980s. The ruling is the largest reparation of its kind in Brazil's history, according to Associated Press. The case was brought to light by extensive documentation provided by a local priest who had been tracking it for decades.
Case details
Probe launched in 2019
The Labor Prosecutor's Office launched an investigation into Volkswagen's subsidiary-owned farm in Para state in 2019. After further inquiries and witness testimony, Volkswagen was formally charged in 2024. The court accepted the charges that hundreds of workers were subjected to degrading conditions between 1974 and 1986 at this farm used for cattle ranching and logging.
Exploitation details
Workers monitored by armed guards
The farm employed some 300 workers under irregular contracts to clear forests and prepare pastures. They were monitored by armed guards and forced to stay on the farm under debt bondage. The workers were allegedly provided with "unsafe housing and insufficient food" necessary for their survival. Those who contracted diseases like malaria were denied medical treatment.
Legal ruling
Judge's statement on ruling
Judge Otavio Bruno da Silva Ferreira's ruling confirmed that the farm belonged to Volkswagen and that the conditions met the legal definition of slave labor. "These practices constituted one of the largest cases of slave labor exploitation in Brazil's recent history," said a statement from Brazil's Labor Prosecutor's Office. Ferreira emphasized that understanding this legacy is crucial for grasping current realities and guiding antidiscrimination judgments.
Appeal process
Volkswagen to appeal court's decision
In response to the ruling, Volkswagen's Brazilian headquarters announced its intention to appeal the court's decision. The company stressed that in its 72 years of operation in Brazil, it has "consistently defended the principles of human dignity and strictly complied with all applicable labor laws and regulations." "Volkswagen reaffirms its unwavering commitment to social responsibility, which is intrinsically linked to its conduct as a legal entity and employer," Associated Press reported, citing the company's statement.