Mercedes faces significant financial penalties due to bullying-related incidents in Brazil.
At a Mercedes factory in Campinas, Brazil, the labor court has called out the automaker for systematically mistreating employees who have taken sick leave. The employees who suffered injuries at work were allegedly subjected to "disrespectful" and "humiliating" conditions upon their return. This situation has negatively impacted the company.
As per reports, Mercedes-Benz has been ordered to pay around 6.7 million euros as compensation for discriminating and harassing its employees. The court declared that these workers, who had been injured in workplace accidents, were subjected to "humiliating and degrading circumstances," including racial discrimination, during their return to work.
According to court documents, between 2004 and 2019, several employees of Mercedes-Benz's largest parts distribution and logistics center outside Germany faced discrimination following illnesses or injuries at their job. Upon their return, they were reportedly isolated and "segregated" physically. They were labeled as a "deviant group" and denied advancement opportunities and wage increments, it was further reported.
The court did not buy Mercedes-Benz's excuse that these were individual incidents. Dismissing the company's claim would have been a "major setback" for worker rights, according to the court.
Despite the manufacturing of high-quality motor vehicles at the Mercedes factory in Campinas, Brazil, the company's treatment of employees who had taken sick leave or suffered workplace injuries was under scrutiny. The court found Mercedes-Benz guilty of subjecting these workers to unfair and disparaging conditions, including racial discrimination, upon their return, which adversely affected the company's reputation in the manufacture of motor vehicles.