Unveiling the Darkness: BYD's Labor Controversy in Brazil

Brazilian prosecutors are taking serious action against the Chinese electric vehicle (EV) giant BYD along with its contractors for allegedly fostering human trafficking and conditions described as ”analogous to slavery” at a construction site intended for a manufacturing plant in Bahia. The Public Labour Prosecutor’s Office (MPT) launched this investigation after an anonymous tip-off led to the rescue of 220 Chinese workers who were reportedly subjected to deplorable living conditions.

The MPT demands a staggering 257 million Brazilian reais (approximately $45.5 million) as compensation for the workers, highlighting that authorities had to halt construction on the plant following the discovery of extremely discomforting accommodations. Many workers were found sleeping on beds without mattresses and forced to share a single toilet among 31 individuals, raising significant concerns over hygiene and basic human dignity.

Additionally, it is alleged that these workers had their passports confiscated, faced illegal employment contracts stipulating excessive work hours without required rest days, and experienced an alarming withholding of up to 70% of their wages. The MPT defines such ”slavery-like conditions” under Brazilian law as those involving debt bondage and actions that violate human dignity.

The construction site is located in Camacari, north-eastern Brazil, and was anticipated to be BYD’s first EV factory outside of Asia, with plans for it to commence operations by March 2025. Known for its significant market impact, BYD had recently outperformed Tesla in Europe and is focusing on expanding its presence in Brazil, acknowledged as its largest overseas market. The firm initially established a factory in São Paulo in 2015, manufacturing chassis for electric buses. Despite the serious allegations, BYD maintains a zero tolerance policy regarding violations of human rights and labor laws, although the absence of an immediate response to these accusations raises further questions about labor practices in their operations.