A Brazilian labor court has ordered Volkswagen’s local subsidiary to pay 165 million reais ($30.44 million) in damages after finding that workers at one of the automaker’s ranches were subjected to slavery-like conditions in the 1970s and 1980s.

According to prosecutors, hundreds of laborers at a Volkswagen-run cattle ranch in the Amazon endured degrading working conditions, were trapped in debt bondage, and lived under constant armed surveillance. The abuses occurred during Brazil’s military dictatorship, when the government offered incentives for ranching and logging projects in the Amazon as part of its push to “develop” the region.

The court ruling came after settlement negotiations broke down. Prosecutors said talks failed because Volkswagen “showed no interest” in reaching an agreement.

As part of the judgment, Volkswagen must not only pay damages but also formally acknowledge its responsibility, issue a public apology, and adopt a “zero-tolerance” policy on slave labor in its operations.

Volkswagen has said it will appeal the decision. In a statement, the company emphasized that it “consistently defends the principles of human dignity and strictly complies with all applicable labor laws and regulations.”

The case highlights the lasting legacy of forced labor in Brazil’s Amazon frontier and the involvement of major corporations in human rights violations during the dictatorship era. (ILKHA)