Brazilian authorities have halted construction of a BYD electric vehicle (EV) factory in Brazil’s Bahia state after rescuing 163 Chinese workers from what they described as “slavery-like conditions.” [emphasis, links added]
The workers were employed by Jinjiang Construction Brazil Ltd., a subcontractor hired to build the plant for the Chinese EV manufacturer.
The Labor Prosecutor’s Office reported that workers were subjected to dire living conditions, had their passports confiscated and 60% of their wages withheld.
Following the report, BYD terminated its relationship with Jinjiang Construction and vowed to safeguard subcontracted workers’ rights.
On Friday, Brazilian authorities suspended the issuance of temporary work visas for BYD. In their report, the Labor Prosecutor’s Office said that workers were being brought to Brazil irregularly and were victims of human trafficking.
A Pattern Of Exploitation
The investigation uncovered numerous labor abuses, including overcrowded accommodations with inadequate facilities.
One dormitory reportedly had only one bathroom for 31 workers, forcing them to wake up at 4 a.m. daily to prepare for a 5:30 a.m. departure to the worksite.
Source: Brazil Labor Prosecutor’s Office
Other allegations included wage withholding and unreasonable cost deductions. Workers who resigned before completing six months of work left without pay because the company would deduct the cost of airfare to and from Brazil.
One individual suffered an accident after working 25 consecutive days. Authorities have shut down the accommodations until they meet regulatory standards.
BYD Reviewed Conditions Weeks Before Site Closure
In a statement, BYD said that it had conducted a “detailed review” of the working and living conditions at the site in the past few weeks and requested on “several occasions” that Jinjiang Construction make improvements.
BYD expressed regret over the situation and emphasized its commitment to Brazilian labor laws and workers’ rights.
“BYD Auto do Brasil reiterates its commitment to full compliance with Brazilian legislation, especially with regard to the protection of workers’ rights and human dignity,” said Alexandre Baldy, senior vice president of BYD Brazil.
The company has relocated workers to hotels and promised to protect the rights of subcontracted workers.
Li Yunfei, a spokesperson for BYD, was far more critical of the Labor Prosecutor’s Office report.
In a statement posted Thursday on his Weibo social media site account, the spokesperson wrote: “In the matter of smearing Chinese brands, smearing China, and attempting to undermine the friendship between China and Brazil, we have seen how relevant foreign forces maliciously associate and deliberately smear.”
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