Volkswagen Brazil compelled to hand over $30 million due to historical allegations of forced labor
In a groundbreaking ruling, the Brazilian labour court has ordered Volkswagen's Brazil unit to pay 165 million reais ($30.44 million) in damages for labour abuses that took place on a farm owned and operated by the company during the 1970s and 1980s.
The ruling, which is significant as it holds a major multinational corporation accountable for historical labour abuses, was made after failed settlement talks between Volkswagen and labour prosecutors. The court found that hundreds of workers at the Volkswagen-run ranch were subjected to degrading work, debt bondage, and armed surveillance, conditions that amounted to slavery-like practices.
The court's order includes a requirement for Volkswagen to publicly acknowledge its responsibility and issue a formal apology. The company has stated its intention to appeal the decision.
Volkswagen, which strictly complies with all applicable labour laws and regulations, has consistently defended the principles of human dignity. However, during the period in question, the company's cattle ranching and logging activities in the Amazon were supported by government incentives under Brazil's military dictatorship.
It is not clear from the provided search results who specifically supported the Brazilian military dictatorship's government during the 1970s and 1980s to develop Volkswagen's cattle ranching and forestry in the Amazon region.
The court's order also includes a "zero-tolerance" policy against slave labour. Prosecutors claimed that during failed negotiations, Volkswagen showed no interest in reaching a settlement.
This ruling marks a step forward in holding corporations accountable for their past actions and ensuring that such abuses are not repeated in the future. Volkswagen must now face the consequences of its actions and work to restore the dignity and rights of the affected workers.
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