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German Automaker Held Accountable For Keeping Workers In Conditions Similar To Slavery During Military Regime And Announces It Will Appeal The Decision.
The Volkswagen of Brazil was ordered to pay a compensation of R$ 165 million for collective moral damages. The decision, from the Labor Court of Redenção (PA), relates to accusations of slavery-like work on a property of the company between 1974 and 1986. The case had been investigated by the Public Labor Ministry (MPT) since 2019.
The Million-Dollar Sentence Against Volkswagen
The trial of Volkswagen took place in May 2025. The action was based on complaints about working conditions at Fazenda Vale do Rio Cristalino, in Santana do Araguaia (PA). According to Judge Otavio Bruno da Silva Ferreira, the evidence demonstrated that the automaker played an active role in the strategic management of the farm.
The company directly benefited from illegal labor exploitation. The court’s decision was based on official reports, testimonies from workers, and documents from public agencies. This evidence proved a production model that included servitude, violence, and degrading conditions.
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The Inhumane Reality On The Farm Of The Automaker
Fazenda Vale do Rio Cristalino, also known as Volkswagen Farm, was a cattle ranching and timber exploitation project. According to the MPT, workers at the site faced a brutal reality. They were under armed surveillance and had no access to drinking water.
Furthermore, the accommodations were unsanitary and there was no medical care, even in cases of malaria. One of the most serious violations was forced indebtedness. Employees were required to buy food, clothing, and tools from the farm itself. When payday arrived, the bosses, known as “cats”, informed them that they actually had debts, forcing them to continue working.
Punishments Beyond Compensation
The compensation of R$ 165 million was not the only penalty. The amount will be allocated to the State Fund for the Promotion of Decent Work and the Eradication of Work in Conditions Similar to Slavery in Pará (Funtrad/PA). The court also determined other measures for Volkswagen.
The company must publicly acknowledge its responsibility and apologize to the workers and society. The automaker will have to adopt a “Human Rights and Decent Work Policy”. Finally, it will need to include clauses against slave labor in contracts with suppliers and allow independent audits.
Volkswagen’s Response To The Conviction
Volkswagen has taken a stance on the case. In May, the company informed Autoesporte that “it categorically rejects all allegations”. After the recent conviction, the automaker informed Agência Brasil that it will appeal the ruling.
In a statement, the company stated that “it will continue its defense in search of justice and legal security in higher courts”. Volkswagen also reaffirmed its commitment to human dignity and the compliance with labor laws in its 72 years of history in the country.
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