Volkswagen has been ordered to pay $30 million in moral damages following a lawsuit that determined the company used slave labor during Brazil’s military dictatorship.
The trial, which began in May 2025, concluded last Friday (August 29) when the Labor Court of Redenção, in Pará, ruled that the company’s working conditions were akin to slavery.
According to the court, the German multinational allowed employees working at Fazenda Vale do Rio Cristalino, in Santana do Araguaia, Pará, to live in degrading conditions between 1974 and 1986.
The farm, owned by Volkswagen through a subsidiary, was used for cattle raising and logging and employed over 300 workers, illegally hired to prepare pastures and clear the forest.
Workers were monitored by armed guards, lived in inadequate housing, received insufficient food, and were forced to stay on the farm under a debt servitude system. In addition, there was no medical assistance, even for those who contracted malaria.
“The evidence shows that Volkswagen do Brasil not only invested in Companhia Vale do Rio Cristalino but also actively participated in its strategic management, directly benefiting from the illegal exploitation of labor,” explained Judge Otavio Bruno da Silva Ferreira of the Labor Court of Redenção, according to g1.
Volkswagen do Brasil stated in a press release that it will appeal the decision. The company asserted that, during its 72 years of operations in Brazil, it has “consistently upheld 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,” the company said in a statement shared with Agência Brasil.
Photo and video: Unsplash. This content was created with the help of AI and reviewed by the editorial team.
