Brazil sues BYD over 'slave-like' conditions at EV plant
What's the story
Brazilian prosecutors have filed a lawsuit against Chinese electric vehicle (EV) manufacturer BYD and two of its contractors, China JinJiang Construction Brazil and Tecmonta Equipamentos Inteligentes Brasil Co. The lawsuit alleges human trafficking and "slave-like" working conditions at a factory construction site in Bahia, Brazil. The Public Labor Prosecutor's Office (MPT) is seeking damages worth 257 million Brazilian reais ($45.5 million) from the three companies involved.
Worker conditions
Investigation leads to rescue of 220 Chinese workers
The MPT's investigation was launched after an anonymous complaint, leading to the rescue of 220 Chinese workers from BYD's factory construction site in Camacari. The prosecutors alleged that these workers were brought to Brazil under false pretenses and with visas that did not match their jobs. They also claimed that the working conditions at the site were extremely degrading, with five settlements maintained by BYD, China JinJiang Construction Brazil and Tecmonta Equipamentos Inteligentes Brasil Co.
Living conditions
Allegations of poor living conditions and passport confiscation
The prosecutors' office said some workers had to sleep on beds without mattresses and keep their belongings with food. There were few bathrooms, which weren't gender-assigned, with one toilet for 31 people in one settlement. The lawsuit also alleges that workers' passports were confiscated upon arrival in Brazil. They were made to work under contracts with illegal clauses, long hours without a weekly rest, and had up to 70% of their salaries withheld.
Corporate stance
BYD's response to the allegations
In response to the allegations, BYD said it is cooperating with investigations and will speak about the case during the probe. The company also emphasized its commitment to respecting Brazil's laws and international labor regulations. In December, a spokesperson for BYD had denied reports about poor conditions at the construction site in Brazil, claiming such allegations were aimed at "smearing" China and Chinese brands.
Expansion plans
BYD's first EV plant outside Asia
The factory in question was to be operational by March 2025 and would have been BYD's first EV plant outside of Asia. The company, which is one of the world's largest EV makers, has been trying to expand its footprint in Brazil, its biggest overseas market. It opened a factory in Sao Paulo in 2015 that produces chassis for electric busses.