Volkswagen鈥檚 Brazilian subsidiary will appeal against a judgement that found it liable for holding workers in slave-like conditions in the 1970s and 1980s, the firm said on Saturday.
A labour court in the Brazilian state of Para found on Friday that hundreds of workers at a farm owned by Volkswagen do Brasil had been kept in debt bondage and watched over by armed guards as they worked.
The Brazilian company should pay 165 million reais (26 million euros) as compensation, the court said, the largest ever such fine imposed in Brazilian history.
Volkswagen do Brasil 鈥榳ill continue its defence in pursuit of justice and legal certainty before higher courts鈥�, it said.
鈥榃ith a 72-year legacy, the company consistently upholds the principles of human dignity and strictly complies with all applicable labour laws and regulations,鈥� it added.
Volkswagen do Brasil should also acknowledge responsibility and formally apologise, the court ruled.
Volkswagen鈥檚 Brazilian subsidiary in the mid-1970s bought land to start a cattle ranch, encouraged by the government which hoped to develop regions in and around the Amazon rainforest.
Jose Pereira, who was employed to clear rainforest from the land, told German broadcaster ARD in 2022 that workers were indebted to contractors who recruited them and that abuses were widespread.
鈥業f anyone tried to escape, the guards went after them and shot them,鈥� he said.
鈥楾hey beat up those who had escaped. On the street, in the huts, everyone saw it.鈥�
Volkswagen began winding down operations at the ranch in 1986.
