Volkswagen convicted of slave labor exploitation
The multinational Volkswagen has been convicted by Brazil’s Labor Court for exploiting labor in conditions analogous to slavery. The violations occurred between 1974 and 1986 at the Vale do Rio Cristalino Farm - also known as the Volkswagen Farm - an agricultural facility located in Santana do Araguaia, in the state of Pará.
The German-owned company must pay BRL 165 million in compensation for collective moral damages. The funds will be allocated to the State Fund for the Promotion of Decent Work and the Eradication of Slave-like Conditions in Pará (Funtrad/PA).
“The evidence in the case shows that Volkswagen do Brasil not only invested in Companhia Vale do Rio Cristalino but also actively participated in its strategic management, benefiting directly from the illegal exploitation of labor,” explained Judge Otavio Bruno da Silva Ferreira of the Labor Court of Redenção, Pará.
In the ruling, the magistrate also states that “official reports, worker testimonies, and documents from public agencies show that the production model adopted included practices of debt bondage, violence, and submission to degrading conditions, constituting the core of contemporary slave labor.”
Servitude and disease
In a statement on August 29, the Labor Prosecution Office reported that hundreds of workers at the Vale do Rio Cristalino farm were subjected to degrading conditions, including armed surveillance, precarious housing, insufficient food, debt bondage, and a lack of medical care, especially for those affected by malaria.
The court’s decision was prompted by a public civil action filed by the Prosecution Office in December 2024, based on complaints submitted in 2019 by Father Ricardo Rezende Figueira of the Pastoral Land Commission.
According to the Labor Prosecution Office, Father Ricardo Rezende Figueira collected documentation on workers subjected to degrading conditions on Volkswagen’s property. The Office reviewed court cases, police investigations, and certificates and statements notarized to prove the reported facts.
Apology
In addition to the million-dollar compensation, the Labor Prosecution Office states that Volkswagen must “publicly acknowledge its responsibility” and “apologize” to the affected workers and society as a whole.
The company will also have to adopt a “Human Rights and Decent Work Policy,” include specific clauses in all contracts with suppliers prohibiting practices analogous to slavery, allow independent audits of its contractual relationships, and implement other measures.
Volkswagen’s agricultural venture received public funding from the Amazon Development Authority (Sudam) during the civil-military dictatorship (1964–1985).
In 2020, the German multinational signed a Conduct Adjustment Agreement (TAC) with the Public Prosecutor’s Office, acknowledging its role in supporting the military dictatorship and human rights violations.
Volkswagen has been operating in Brazil since the 1950s, a period of national industrialization and the beginning of vehicle production in the country.
The company
When contacted by Agência Brasil, the automaker said in a statement that it will appeal the ruling.
Volkswagen do Brasil said it was aware of the lower court’s decision related to the investigation of Fazenda Vale do Rio Cristalino, but “will continue its defense in pursuit of justice and legal certainty before the higher courts.”
The company added that “with a 72-year legacy, it consistently upholds the principles of human dignity and strictly complies with all applicable labor laws and regulations.”
“Volkswagen reaffirms its unwavering commitment to social responsibility, intrinsically linked to its conduct as a legal entity and employer,” the statement concludes.
