Brazilian court upholds slave-like labor ruling against Volkswagen

The Regional Labor Court of the 8th Region upheld the conviction of Volkswagen for practicing contemporary slave-like labor during Brazil’s civil-military dictatorship at the Vale do Rio Cristalino farm in Santana do Araguaia, Pará state.

With the decision, issued during an ordinary session held Tuesday (Feb. 24), the automaker will be required to pay BRL 165 million in compensation to fund worker protection measures, including the Workers’ Assistance Fund (FAT).

The case was brought through a public civil action - a collective lawsuit - by the Labor Public Prosecutor’s Office (MPT), which sought not only compensation for moral damages but also a public retraction from the company and the implementation of measures such as protocols to expedite its response in similar cases, a complaint channel, and inspection procedures.

Volkswagen’s conviction was announced in August last year. Following the decision by Judge Otávio Bruno da Silva Pereira of the Regional Labor Court, the company filed an appeal seeking to overturn the judgment, taking the case to the appellate court.

In Tuesday’s session, the president of the court’s 4th panel, Judge Carlos Zahlouth Júnior, noted that, at the time of the crimes, police opened an investigation but later closed it. He also referred to the persecution of regime opponents in São Bernardo do Campo, in the state of São Paulo, following the 1964 coup, with the participation of segments of the Brazilian business community.

“I also recognize that it was one of the few companies that acknowledged its past,” he added.

In her speech, Judge Alda Maria de Pinho Couto echoed this sentiment, describing the repeated violations of workers’ rights as “an organized system of human exploitation,” characterized, among other things, by human trafficking.

The Vale do Rio Cristalino farm belonged to Companhia Vale do Rio Cristalino Agropecuária Comércio e Indústria (CVRC), a subsidiary of Volkswagen. According to the Ministry of Human Rights and Citizenship, which is monitoring the case, “the property in question, covering approximately 140,000 hectares - nearly the size of the city of São Paulo - received tax incentives and public funds for cattle raising at the time, becoming one of the largest centers in the sector, highlighting the company’s institutional responsibility.”

To ensure justice for the exploited workers and hold the German manufacturer accountable, the Pastoral Land Commission (CPT) gathered evidence of human rights violations and sought support from parliamentarians to raise awareness. The organization continues to monitor the progress of the ongoing legal proceedings. In a separate lawsuit running parallel to the public civil action, four formerly enslaved workers are each seeking BRL 1 million in moral damages and BRL 1 million in existential damages.

The workers were lured under circumstances similar to those of other victims of this type of crime. Intermediaries hired by Volkswagen, popularly known as “gatos” (cats), who act as middlemen between the enslavers and the enslaved victims, approached them with promises of decent work, a condition that was never actually offered.

Contacted by Agência Brasil, Volkswagen’s team in Brazil stated that it “will continue to pursue legal certainty at the highest levels of the Brazilian judiciary.”

With a legacy of over 70 years and as one of the largest employers in Brazil, Volkswagen reaffirms its unwavering commitment to the Federal Constitution, Brazilian laws, and international human rights principles, which guide its actions as a leading employer in the country. The company repudiates any form of forced, degrading, or slave-like labor and reiterates its longstanding dedication to promoting a dignified, ethical, and responsible work environment.

On its English-language website, the automaker reports that it generated €158.4 billion in revenue in the first half of 2025, although its performance was weaker than in the same period in 2024. The report shows that 4.36 million vehicles were sold, compared to 4.34 million in the previous period.