Overview

• The regional labor court in Redenção, Pará, found that hundreds of workers on VW’s Vale do Rio Cristalino farm faced degrading conditions, debt bondage and armed supervision between 1974 and 1986.
• The ruling orders 165 million Reais in damages, described by prosecutors as Brazil’s largest penalty to date in a modern slavery case, and requires a public acknowledgment of responsibility and an apology.
• Investigations began in 2019 after priest Ricardo Rezende provided extensive documentation; prosecutors filed formal charges in 2024 following failed settlement talks.
• Volkswagen argues it lacked formal employment ties to labor intermediaries known as gatos, but the judge held that absence of formal links does not absolve liability for the abuses.
• The decision is a first-instance judgment subject to review in higher courts, and VW do Brasil says it adheres to labor laws and human dignity principles as it prepares its appeal.