More than 160 workers were rescued from degrading living conditions amid the construction of BYD’s first overseas electric vehicle plant.
Brazil Halts BYD Factory Over 'Slavery' Conditions
Brazil Halts BYD Factory Over 'Slavery' Conditions
Brazilian authorities intervene in construction of BYD factory, citing reports of worker exploitation.
In a significant move, Brazilian authorities have suspended the construction of a factory for the Chinese electric vehicle manufacturer BYD, citing alarming worker conditions akin to "slavery." The Public Labour Prosecutor's Office (MPT) reported rescuing over 160 workers in the northeastern state of Bahia, where they were allegedly subjected to degrading environments, including the withholding of passports and salaries by the subcontractor, Jinjiang Construction Brazil.
BYD responded by severing ties with the contractor and reiterating its commitment to adhering to Brazilian laws. The factory was projected to be operational by March 2025 and was expected to expand BYD's operations beyond Asia. In Camaçari city, where the workers were housed, conditions were reportedly dire, with some living in facilities devoid of basic comforts like mattresses, and with one shared bathroom for 31 workers. Prosecutors expressed concern over the overall "precariousness and degradation" of the workers' lodgings.
Under Brazilian law, conditions defined as "slavery-like" include practices such as debt bondage and any work that undermines human dignity. The MPT indicated that the situation also amounted to forced labor as many employees faced excessive costs for cancelling their contracts and had their wages unlawfully withheld. BYD has since relocated the affected workers to hotels while conducting a thorough review of the living and working conditions of subcontracted staff.
The company, known for being one of the leading global EV makers, has been expanding aggressively in Brazil, its largest overseas market. It opened its first factory in São Paulo in 2015 for producing electric bus chassis and announced a substantial investment in an EV manufacturing plant in 2022. Although BYD recently surpassed Tesla in EV sales in late 2023, the unfolding situation may challenge its reputation and business ventures in the region.
