Volkswagen Brazil to appeal slavery ruling from 1970s and 1980s

Sunday 31 August 2025 - 07:35

By: Sahili Aya

Volkswagen Brazil to appeal slavery ruling from 1970s and 1980s

Volkswagen do Brasil, the Brazilian subsidiary of the German automaker, announced it will appeal a court decision that found the company guilty of maintaining workers in conditions akin to slavery during the 1970s and 1980s.

The labor court in the state of Pará ruled on Friday that hundreds of workers employed at a cattle ranch owned by Volkswagen had been trapped in debt bondage and monitored by armed guards while working.

The ruling orders the company to pay 165 million reais (around 26 million euros) in compensation—the largest penalty of its kind ever imposed in Brazil. In addition, the court determined that Volkswagen must formally acknowledge its responsibility and issue an apology.

In a statement, the company declared that it would continue to defend itself in higher courts, insisting that it has always upheld human dignity and complied with labor regulations throughout its 72-year history in Brazil.

The controversy stems from land acquired by Volkswagen in the mid-1970s to establish a cattle farm, supported by government incentives to promote development in the Amazon region.

Judge Otavio Bruno da Silva Ferreira explained that evidence showed the company not only invested in the ranch but also took part in its strategic management, directly benefiting from the exploitation of labor. Official reports and worker testimonies described practices of debt servitude, degrading working conditions, and violence—amounting to modern-day slavery.

Former worker Jose Pereira told German public television ARD in 2022 that laborers were trapped in debt to recruiters and faced brutal treatment. “If someone tried to escape, guards would chase and shoot at them,” he said, recalling widespread violence and intimidation on the farm.

Volkswagen began winding down its operations on the ranch in 1986, but the case continues to resonate as one of Brazil’s most significant labor rights rulings.