Brazil Labor Court Fines Volkswagen $30M for Amazon Slave Labor

Brazil's labor court has ordered Volkswagen's Brazilian unit to pay 165 million reais (about $30 million) in what is considered the largest reparation for slave labor in the country's history. The ruling stems from abuses between 1974 and 1986 at a Volkswagen-owned farm in the Amazon, where approximately 300 workers were subjected to degrading conditions including debt bondage, armed surveillance, unsafe housing, insufficient food, and denial of medical care for diseases like malaria. The case was brought to light through extensive documentation provided by a local priest and was formally charged in 2024 following an investigation launched in 2019. Judge Otavio Bruno da Silva Ferreira confirmed that the farm belonged to Volkswagen and that the conditions legally constituted slave labor, emphasizing the ongoing legacy of slavery in Brazilian society and labor relations. Volkswagen announced it will appeal the decision but has been required to publicly admit responsibility, issue a formal apology, and implement a zero-tolerance policy toward slave labor. Prosecutors noted that Volkswagen's cattle ranching and logging operations during that period were supported by government incentives under Brazil's military dictatorship, and a previous attempt at settlement negotiations failed when Volkswagen showed no interest.