Volkswagen Fined for Historical Labor Abuses in Brazil

Volkswagen has been ordered to pay $30.44 million in damages for subjecting workers to slavery-like conditions at a Brazilian ranch during the 1970s and 1980s. The company plans to appeal. The ruling follows failed settlement talks, requiring Volkswagen to apologize and implement a zero-tolerance policy against slave labor.

In a landmark decision, Volkswagen's Brazil unit has been fined 165 million reais (approximately $30.44 million) for historical labor abuses. This compensation comes after revelations of workers being held in slavery-like conditions at a company-run ranch in the Amazon during the 1970s and 1980s.

The labor court's ruling highlighted instances of degrading work conditions, debt bondage, and armed surveillance. Backed by government incentives under Brazil's military dictatorship, Volkswagen's ventures included cattle ranching and logging.

After settlement talks with Volkswagen's Brazil unit fell through, prosecutors stated that the company must now publicly acknowledge its role, issue a formal apology, and enforce a zero-tolerance policy for such abuses. Volkswagen insists it upholds human dignity and labor laws, despite its plans to challenge the ruling.

(With inputs from agencies.)