VW Faces Penalty in Brazil for Violating Human Rights Laws

In a groundbreaking decision, a labor court in Brazil has ordered Volkswagen do Brasil, the Brazilian subsidiary of the German automotive giant, to pay over 165 million Reais (approximately 26 million euros) in damages for forced labour practices on a cattle farm in Pará during the 1970s and 1980s.

The ruling is significant as it holds a major corporation accountable for its past actions and the impact on the environment and human rights. The court found that Volkswagen violated labour laws, leading to forced labour, mistreatment, wage theft, and the use of armed guards.

Investigations into VW's activities on the farm began in 2019, after Father Ricardo Rezende Figueira, who worked for the Commission of the Land Pastoral, gathered documents. Rezende Figueira claims that the corporation destroyed large areas of rainforest, and deforestation in the area continues.

The labor abuse is said to have occurred on a farm owned by a subsidiary of car manufacturer VW. Pedro Pereira Vasconcelos, a Brazilian worker, suffered abuse on the farm for over 40 years. He describes the abuse as mistreatment, wage theft, and the use of armed guards.

Allegations of murder and torture on the farm, as well as the employment of minors and the invasion of indigenous land, have also been made by Rezende Figueira. During the military dictatorship, workers were brutally exploited, working from dawn till dusk and guarded by armed wardens.

The responsible public prosecutor, Rafael Garcia, called it a historic day as one of the world's largest companies must take responsibility for "humiliating human rights violations." No individual person within the VW Group is cited as personally required to pay the damages; rather, the corporation as a whole has been ordered to pay the amount due to the forced labour practices.

The fine is the highest ever imposed in Brazil for cases of modern slavery. VW has announced its intention to appeal against this verdict. The case serves as a reminder of the need for corporations to respect human rights and labour laws, and the consequences of failing to do so.