Overview

• The Labor Court of Redenção ordered Volkswagen do Brasil to pay 165 million reais (about €26–30 million) and to issue a public apology.
• The ruling addresses 1974–1986 abuses at the Fazenda Vale do Rio Cristalino, where hundreds of workers faced debt bondage, armed guards, degrading housing, scant food, and little medical care.
• The judge rejected Volkswagen’s defense about lacking formal ties to intermediaries, finding the company benefited from unlawful exploitation carried out through labor brokers known as ‘gatos’.
• The investigation began in 2019 after priest Ricardo Rezende provided extensive documentation; an out-of-court deal failed in 2023 before prosecutors filed suit in December 2024.
• Volkswagen denies liability and will appeal, a step that prolongs the case and follows a separate 2020 settlement over dictatorship‑era abuses at its São Paulo operations.