Brazil Sues China’s BYD Over Alleged Slave Labor Conditions at Construction Site

Brazilian prosecutors are suing Chinese automaker BYD over human trafficking and alleged slave labor practices involving Chinese workers at a construction site in Bahia. The MPT reported degrading working conditions, including shared bathrooms and confiscated wages, prompting a lawsuit seeking 257 million reais in damages. BYD maintains it is committed to labor rights, despite the serious allegations.

Brazilian authorities have initiated legal proceedings against BYD, a major Chinese electric vehicle company, and two contractors for purported human trafficking and slave labor conditions at a construction site. The lawsuit was revealed in legal documents viewed by AFP on Thursday, marking a serious escalation in the situation involving approximately 220 Chinese laborers discovered in December working under what have been described as ‘analogous to slavery’ conditions.

The troubling findings were reported by Bahia’s regional ministry for works (MPT), which stated that the site in Camacari, intended to be BYD’s largest electric car manufacturing facility outside Asia, exhibited severely degrading working conditions. Reports indicate that some workers slept without mattresses, and in a particularly alarming instance, 31 individuals were found sharing a single bathroom facility. Furthermore, workers reportedly displayed visible signs of skin damage due to prolonged exposure to the sun while laboring under harsh conditions.

Additionally, the MPT raised concerns regarding suspected forced labor, highlighting issues such as illegal contract clauses, confiscated passports, and the employer withholding substantial portions of wages—up to 70 percent. Workers were allegedly monitored by guards wielding firearms, illustrating a concerning climate of intimidation. Following the surfacing of these allegations, BYD’s Brazilian arm announced its termination of the contract with the Jinjiang contractor responsible for oversight at the site, although Jinjiang has denied all allegations related to slavery.

In response to these serious claims, the MPT aims to recover 257 million reais (approximately $45.3 million) in collective moral damages, along with individual compensations for affected workers. The civil suit against BYD, Jinjiang, and Tonghe Intelligent Equipment (now known as Tecmonta) was prompted after these firms declined to enter a ‘conduct adjustment agreement’ proposed by Brazilian authorities.

In a statement released on Thursday, BYD declared its commitment to human rights and labor standards, asserting that it has worked cooperatively with the MPT from the onset. The company emphasizes its adherence to Brazilian laws and international labor protections. Meanwhile, Chinese foreign ministry spokeswoman Mao Ning responded to the situation, stating that Beijing is committed to upholding the rights and interests of workers, insisting that Chinese companies must comply with local laws and regulations.

The legal actions against BYD and its contractors illustrate severe allegations of labor rights abuses in Brazil. With the MPT’s findings of degrading conditions, forced labor, and the significant financial penalties sought, the case raises critical questions about labor practices in international operations. BYD has publicly affirmed its dedication to worker rights, but the outcome of these proceedings could have major implications for the company’s reputation and operations in Brazil and beyond.

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