Brazil’s labor court has imposed a fine on Volkswagen of 165 million reais, about $30 million. This settlement compensates for moral damages collective in relation to labor abuses that took place in a company-owned farm located in the Amazon region during the 1970s and 80s. According to a recent federal court decision on Friday, this nightmare is the daily reality for hundreds of workers. These dreadful conditions were the farm in Para state.
The labor court partially upheld the charges made against Volkswagen’s subsidiary. Under the Workers’ Rights Restoration Act, workers endured humiliating and harassing conditions at the facility between 1974 and 1986. Fazenda Gressoney Judge Otavio Bruno da Silva Ferreira accepted that the evidence unequivocally demonstrates that Volkswagen owned the farm. Around 300 workers cleared forests and opened pastures, based on an unstable system of contracts on the farm.
Judge Ferreira ruled the situation on the farm qualified as legal slave labor under the law. He stated, “Slavery is a ‘present past,’ because its marks remain in Brazilian society, especially in labor relations.” This decision underscores the continuing impact of Brazil’s colonial esclavage system. Despite its suppression, it continues to shape racial and social hierarchies throughout the nation to this day.
The Labor Prosecutor’s Office also launched an investigation into the working conditions at the Volkswagen-owned farm in 2019. Throughout this investigation, documentation provided by a local Catholic priest has been crucial. Here’s what made him the right man for the job—there, for decades. That research uncovered one of the biggest cases of slave labor exploitation in Brazil’s recent history.
Volkswagen has been operating in Brazil for 72 years, and its Brazilian headquarters released a statement asserting that it “consistently defended the principles of human dignity and strictly complied with all applicable labor laws and regulations.” Furthermore, they emphasized their commitment to social responsibility, which they described as being “intrinsically linked to its conduct as a legal entity and employer.”
The legacy of slavery in Brazil cannot be understated. Estimates from the Trans-Atlantic Slave Trade database indicate that Brazil brought more Africans into chattel slavery than any other country on earth. It was additionally the most recent country in the Western Hemisphere to end slavery, formally doing so in 1888.
Volkswagen is still trying to figure out what this ruling means. At the same time, it is under scrutiny about its past practices and their compatibility with today’s prevailing labor practices. The court’s decision serves as a reminder of the importance of holding corporations accountable for historical injustices and ensuring that such abuses do not occur in the future.
