VW Do Brasil in the Brazilian Military Dictatorship 1964 -1985
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VW do Brasil in the Brazilian Military Dictatorship 1964 -1985 A Historical Study Christopher Kopper VW do Brasil in the Brazilian Military Dictatorship 1964 -1985 A Historical Study Christopher Kopper TABLE OF CONTENTS 1. Introduction 3 2. From the founding of VW do Brasil to the military coup 9 on March 31, 1964 3. VW do Brasil and the military coup on March 31, 1964 17 4. Industrial relations at VW do Brasil during the dictatorship 25 5. The development of VW do Brasil during the 39 Brazilian Economic Miracle (1968-1974) 6. VW do Brasil and the persecution of political opponents 53 of the military regime 7. Pay and working conditions at VW do Brasil 67 in the 1960s and 1970s 8. The strikes of 1978, 1979 and 1980 75 9. Change in economic crisis: the democratisation 93 of industrial relations at VW do Brasil in the early 1980s 10. VW do Brasil as a major land-owner, and the social 107 and ecological consequences: the Rio Cristalino project 11. Franz Stangl: a concentration camp commandant 117 as an employee of VW do Brasil 12. Results 125 1 1. Introduction ← Aerial shot of the São Bernardo do Campo plant, 1979 ← Previous page: Assembly plant in Ipiranga, São Paulo, 1953 3 INTRODUCTION This study was commissioned in response to recent events. In 2014, a detailed 1 report by the Brazilian Truth Commission revealed to the country the extent of For example, a Spiegel Online headline on human rights violations and political murders during the period of military November 1, 2015 read: “VW will Verwick- dictatorship 1964-1985. The report confronted VW do Brasil with allegations of lungen in brasilianische Diktatur aufarbeit- collaboration with the Political Police and of discrimination against trade union en” [VW seeking to reappraise involvement activists. When trade unionists filed a civil suit against VW do Brasil with the in Brazilian dictatorship], Justice Ministry of São Paulo state in September 2015, the news was picked up (http://www.spiegel.de/wirtschaft/ by Latin American information services and German media correspondents, and unternehmen/volkswagen-in- reached the German public.1 brasilien-vw-will-diktatur- geschichte- aufarbeiten-a-1060622.html, Group board member for integrity and legal affairs Dr. Christine Hohmann- accessed June 16, 2017). Dennhardt commissioned a comprehensive investigation into the allegations in November 2016. Although VW do Brasil’s shared responsibility for human rights violation is at the heart of this study, its involvement in political repression by the military regime is not considered in isolation from the economic development of the company. This study also considers the general relationship of VW do Brasil managements and of the German parent company to the political leaders of the dictatorship, and examines the economic interests, colonialist ideas and political stereotypes, as well as the structures of economic opportunity, which determined patterns of behaviour in relation to, and within, the dictatorship. It also aims to show how the management of the former Volkswagenwerk AG in Wolfsburg perceived developments at their Brazilian subsidiary, and the point from which – and the reasons why – the management board committed to creating a democratic and participatory corporate culture at VW do Brasil. 4 INTRODUCTION 2 During the 1960s VW do Brasil grew into the Volkswagen Group’s biggest member- In this regard refer to the excellent over- company outside Germany, and became the fifth-largest industrial concern in Brazil. view by Sebastian Brünger in “Geschichte An extensive study of the history of VW do Brasil will reveal the importance of the und Gewissen: Der Umgang deutscher Brazilian subsidiary to the economic development of VW AG. Linked to this are the Konzerne mit ihrer NS-Vergangenheit” fundamental questions of whether VW – thanks to its position as a highly dynamic [History and conscience: the response of business, and being the largest foreign industrial corporation in Brazil – was able to German companies to their Nazi past], enjoy special privileges in terms of tax breaks, subsidy policy and foreign exchange Göttingen 2017. Knud Andresen has laws in the context of the Economic Dependency Theory, or whether the Brazilian written a paper on the relationship of government was able to assert what by today’s standards would have been a high German car manufacturers to South Africa’s degree of market regulation and control over the appropriation of corporate profits. Apartheid regime (“Moralische Ökonomie: Bundesdeutsche Automobilunternehmen A key question in this context is whether VW do Brasil profited not only from the und Apartheid” [Moral economics: German dictatorship’s economic policies, but also from its domestic and legal policies. car companies and Apartheid], in: The Brazilian military dictatorship abolished basic employees’ rights such as the Zeithistorische For schungen/Studies in right to strike, replaced the freedom of employers and employees’ representatives Contemporary History 13 (2016), issue 2, to negotiate pay rates by a state-controlled wage structure, and suppressed pp. 231-253). Regarding VW in South Africa the organised labour movement up until 1978. These major restrictions of refer also to Claudia Nieke, “Volkswagen fundamental social and economic rights did not remain without consequences in am Kap: Internationalisierung und terms of wage trends and the working and living conditions of the workforce. Netz werk in Südafrika 1950 bis 1966” [Volkswagen on the Cape: This study is the first publication to appraise the behaviour of a German Internationalisation and networking in company in a post-war dictatorial regime. While numerous empirically fruitful South Africa 1950 to 1966], Wolfsburg and well-designed studies have been produced over the last 30 years in relation 2010, though that paper deals to a lesser to the conduct of German companies during the era of National Socialism, the extent with the response of VW to the relationship of German companies to right-wing dictatorial regimes in Southern Apartheid regime. Europe, Latin America, Asia and Africa has been little studied to date.2 Compared to the extremely extensive, thematically and methodologically very wide-ranging research into National Socialism, research into the Brazilian military dictatorship remains little advanced. While mainly American economists have studied the macro-economic development of Brazil, and political scientists have detailed the developments in police repression policies and the gradual return to the rule of law and pluralism since 1979, there has been as yet little research into Brazil’s social history and the development of corporations in the country during the military dictatorship. It was as recently as 2014 that the National Truth 5 INTRODUCTION Commission instigated by the Rousseff government published a detailed report 3 on political persecution and the collaboration of state and non-state actors with Regarding the handover of the Political the Political Police. Police files refer to Maria Aparecida de Aquino et al., “O dissecar da estructura Although the files of the Political Police provide some insight into the collaboration administrativa do DEOPS/SP”, São Paulo of company security services with policing bodies, the extent of that collaboration 2002; idem. et al., “O DEOPS/SP em busca can be estimated but not reconstructed in full, as an unknown quantity of files have do crime politica: Familia 50”, São Paulo been destroyed. The files of the Political Police in São Paulo state were held – from 2002. the time of the organisation’s abolition in 1982 until they were transferred to the Arquivo do Estado de São Paulo [São Paulo state archive] in 1994 – in the custody of the Police Commissioner, who until 1982 had commanded the Political Police, and so had no great interest in providing the world with a complete legacy after his departure.3 The Corporate History Department of Volkswagen AG has made a major contribution to this study. Special thanks go to Dr. Ulrike Gutzmann, who comprehensively searched through all the key files in the Group archives relating to VW do Brasil, as well as providing excellent working conditions for evaluation of the files. Thanks also go to the General Works Council of VW for giving consent to inspect its historical records. And thanks are also due to the Group board members for integrity and legal affairs, Dr. Christine Hohmann-Dennhardt and from February 2017 Hiltrud Werner, who supported the research not only through their funding, but also through their personal interest. Although VW do Brasil has in recent decades destroyed almost all records of historical significance on expiration of their statutory retention periods, the staff of the Corporate History Department has made every conceivable effort to locate documents from company and state archives. Most sincere thanks are due to archivist Clarice Caires, who has been building up the VW do Brasil archive since 2013, and who was a great help in evaluating Political Police files in the São Paulo state archive. Thanks are also due to Andre Senador and Daniel Tadashi, who have supported the project actively and without reservation, and who showed the author the rightly famous Brazilian hospitality. Susanna Berhorn de Pinho translated innumerable documents into German, saving the author the trouble of having to get by with his only recently acquired knowledge of Portuguese. 6 INTRODUCTION 7 2. From the founding of VW do Brasil to the military coup on March 31, 1964 ← Official opening of the plant in São Bernardo do Campo on November 18, 1959: Front left seated, Heinrich Nordhoff, General Director of Volkswagenwerk GmbH; at the rear, waving, Brazilian President Juscelino Kubitschek 9 FROM THE FOUNDING OF VW DO BRASIL TO THE MILITARY COUP ON MARCH 31, 1964 The history of VW do Brasil began on March 23, 1953, at a time when the 4 Volkswagenwerk GmbH was just establishing itself on export markets outside A brief summary of the early history of VW Europe.