Over 160 laborers rescued, raising concerns about compliance and labor practices in Chinese investments.
Brazil Halts BYD Factory Amid Slave Labor Allegations
Brazil Halts BYD Factory Amid Slave Labor Allegations
Authorities intervene as workers face inhumane living conditions in construction of EV plant.
Brazilian authorities have suspended the construction of a factory for BYD, the Chinese electric vehicle (EV) manufacturer, following reports alleging that workers experienced conditions tantamount to “slavery.” The operation in the northeastern state of Bahia was intended to launch BYD’s first manufacturing facility outside of Asia by March 2025.
This drastic move came after more than 160 workers were rescued by Brazil’s Public Labour Prosecutor's Office (MPT), which claims that these employees endured degrading living conditions. Reports indicated that the workers had their passports confiscated and wages withheld by Jinjiang Construction Brazil, the subcontractor in charge of the project.
MPT revealed alarming living conditions, noting that workers were forced to sleep on beds lacking mattresses and shared facilities among 31 people, leading to an excessive daily struggle to prepare for work. The prosecutors emphasized that these conditions fit the definition of "slavery-like" situations, implying debt bondage and other violations of human dignity under Brazilian law.
In a public statement, BYD issued a commitment to adhere to Brazilian laws and noted its decision to part ways with the construction company implicated in the grievance. The company reportedly relocated the affected workers to hotels and has conducted an internal review of subcontractor employee conditions.
BYD, acronym for Build Your Dreams, has become a significant player in the EV market, surpassing Tesla in electric vehicle sales for the last quarter of 2023 as both companies vie for dominance in the industry. With Brazil being BYD's largest overseas market, the company has ambitious growth plans, having previously invested heavily in the region.
However, increasing scrutiny of labor practices and compliance issues poses challenges for international investments in Brazil, particularly from firms supported by foreign governments, amid rising tensions and tariffs on imports from China by major markets like the US and EU.
This drastic move came after more than 160 workers were rescued by Brazil’s Public Labour Prosecutor's Office (MPT), which claims that these employees endured degrading living conditions. Reports indicated that the workers had their passports confiscated and wages withheld by Jinjiang Construction Brazil, the subcontractor in charge of the project.
MPT revealed alarming living conditions, noting that workers were forced to sleep on beds lacking mattresses and shared facilities among 31 people, leading to an excessive daily struggle to prepare for work. The prosecutors emphasized that these conditions fit the definition of "slavery-like" situations, implying debt bondage and other violations of human dignity under Brazilian law.
In a public statement, BYD issued a commitment to adhere to Brazilian laws and noted its decision to part ways with the construction company implicated in the grievance. The company reportedly relocated the affected workers to hotels and has conducted an internal review of subcontractor employee conditions.
BYD, acronym for Build Your Dreams, has become a significant player in the EV market, surpassing Tesla in electric vehicle sales for the last quarter of 2023 as both companies vie for dominance in the industry. With Brazil being BYD's largest overseas market, the company has ambitious growth plans, having previously invested heavily in the region.
However, increasing scrutiny of labor practices and compliance issues poses challenges for international investments in Brazil, particularly from firms supported by foreign governments, amid rising tensions and tariffs on imports from China by major markets like the US and EU.
