Brazilian Labor Prosecutors Charge Volkswagen

SAO PAULO (Reuters) – Brazilian labor prosecutors have charged Volkswagen's local unit with subjecting farm workers to conditions akin to slavery decades ago, seeking 165 million reais ($27.5 million) in damages.

Volkswagen do Brasil stated that it had not yet been formally notified of the charges.

Prosecutors allege that Volkswagen committed human rights violations on its owned farm from 1974 to 1986 in northern Brazil. A labor judge will now review the charges to determine if the case will progress.

The investigation began after reports by Ricardo Rezende, a priest and professor at the Federal University in Rio de Janeiro, in 2019, which included documents and testimonials from farm workers.

Prosecutors found serious violations of human rights on the farm, where workers faced slavery-like conditions, long hours, degrading environments, and debt bondage, according to prosecutor Rafael Rodrigues.

These charges, including a request for collective moral damages, come after unsuccessful negotiations with Volkswagen do Brasil for a settlement. Prosecutors noted that the company withdrew from negotiations in March 2023 and showed no interest in reaching an agreement.

> ($1 = 6.0018 reais)