Brazilian Authorities Take Legal Action Against BYD
Brazilian prosecutors have launched a lawsuit against Chinese electric car giant BYD and two contracting companies, alleging human trafficking and slave labor conditions at a construction site in Camacari, Bahia. The legal action, confirmed through documents seen by AFP, follows an investigation that uncovered degrading working conditions at the site of BYD’s largest electric car plant outside Asia under construction.
Conditions Described as ‘Analogous to Slavery’
The Bahia regional ministry for works (MPT) discovered in December that 220 Chinese workers were found in conditions described as “analogous to slavery” at the construction site. Inspectors reported that workers were sleeping without mattresses, with one bathroom being shared among 31 people. Laborers showed “visible signs of skin damage” due to prolonged exposure to the sun while working long hours.
The MPT also suspected “forced labor” practices, including illegal contract clauses, confiscation of passports, and withholding up to 70% of workers’ salaries. The situation was further aggravated by the presence of armed guards monitoring the workers.
Legal Consequences and Company Responses
Following the public disclosure of these allegations, BYD’s Brazilian subsidiary terminated its contract with Jinjiang, the contractor responsible for the site’s construction. Jinjiang denied the allegations of slavery. The MPT is now seeking 257 million reais ($45.3 million) in “collective moral damages” along with individual compensation for each affected worker.
The civil lawsuit against BYD, Jinjiang, and Tonghe Intelligent Equipment (now known as Tecmonta) was filed after the companies declined to sign a “conduct adjustment agreement” proposed by Brazilian authorities.
In response to the allegations, BYD stated that it had collaborated with the MPT from the outset and reaffirmed its commitment to human and labor rights, adhering to Brazilian legislation and international labor standards. Chinese Foreign Ministry spokeswoman Mao Ning emphasized Beijing’s importance on protecting workers’ rights and ensuring Chinese companies operate within legal frameworks.
The case highlights concerns regarding labor practices in international construction projects and the responsibilities of global companies operating abroad.
