Workers Rescued from Deplorable Conditions
Brazilian authorities have stopped construction on a BYD factory, citing worker conditions akin to “slavery.” Over 160 workers were rescued in Bahia state, according to the Public Labour Prosecutor’s Office (MPT). These workers reportedly lived in degrading conditions, had their passports confiscated, and faced withheld salaries.
The workers, employed by Jinjiang Construction Brazil, resided in four facilities in Camaçari. At one site, workers slept on beds without mattresses. Bathrooms were shared among 31 people, forcing early wake-ups to prepare for work. Prosecutors described the lodgings as alarmingly precarious and degrading.
Brazilian law defines “slavery-like conditions” as situations involving debt bondage or work that violates human dignity. The MPT also classified the case as forced labor, citing withheld wages and high termination costs.
BYD Cuts Ties and Reviews Practices
BYD, the Chinese electric vehicle (EV) giant, stated it has severed ties with the involved construction firm. The company relocated affected workers to hotels and initiated a detailed review of subcontractor practices. BYD claimed it repeatedly asked the construction firm to improve conditions.
The halted factory, scheduled to open by March 2025, would have been BYD’s first EV plant outside Asia. BYD, short for Build Your Dreams, is a leading EV maker and outperformed Tesla in global sales during late 2023. The company has been expanding its presence in Brazil, its largest overseas market.
BYD first entered Brazil in 2015 with an electric bus chassis factory in São Paulo. Last year, it announced a $484 million investment to build an EV plant.
Global EV Market Challenges
China’s EV sales have grown significantly, fueled by government subsidies promoting EV adoption. However, international markets have raised concerns about perceived unfair advantages for Chinese automakers. The US and EU have imposed tariffs on Chinese EVs, and further restrictions may follow under new trade policies.
Brazil’s action highlights the importance of ethical labor practices in the growing EV sector, as companies face increasing scrutiny worldwide.