Brazilian prosecutors are threatening to sue Volkswagen over allegations that the German carmaker used slave labour on a cattle ranch in the Amazon during the country's military dictatorship. The move comes after talks on compensation for workers ended without agreement.
Public prosecutors in Brazil say men were forced to work in 'humiliating and degrading' conditions on the Fazenda Vale do Rio Cristalino ranch in Pará state, owned by Volkswagen between 1973 and 1987. The workers were hired by local contractors to clear rainforest for the ranch, but were forced to buy their own tools, food and housing, leaving them in debt bondage.
'Grave violations of human rights took place on a farm owned by one of the largest companies in the world and reparations should be paid on a large scale,' said Rafael Garcia, a public prosecutor for the Brazilian labour ministry. The government will now take 'all judicial and extrajudicial measures necessary' to seek reparations, including in courts abroad.
Official documents show Volkswagen received over $129m in grants and tax breaks from Brazil's military government to buy and run the ranch. The case is based on evidence collected by Catholic priest Ricardo Rezende, who said he saw a man tied up in a truck on the farm in 1984. Testimonies from 15 former workers describe debt bondage, lack of clean water, and threats of violence.
Former worker José Ribamar Viana Nunes said he was recruited at age 16 in 1983, promised a well-paid job with a football pitch. Instead, he was taken to the ranch in a truck, forced to build his own shelter from wood and plastic, and never received wages as all earnings went to pay off debts. Malaria was rife, and escape was difficult due to isolation in the rainforest.
