Brazil Sues China’s BYD Over Allegations of Slave Labor Conditions

Brazilian prosecutors are suing BYD over allegations of human trafficking and slave labor conditions at a construction site in Bahia. The case involves 220 Chinese workers found in degrading environments with signs of forced labor. Damages of 257 million reais are being sought, alongside individual compensation. BYD has expressed its commitment to human rights.

Brazilian authorities have initiated legal proceedings against BYD, a major Chinese electric vehicle manufacturer, over serious allegations of human trafficking and slave labor conditions at one of its construction sites. According to documents reviewed by AFP, the lawsuit involves the treatment of 220 Chinese workers discovered in deplorable conditions at a facility being built in Camacari, Bahia, which is set to be BYD’s largest electric car production plant outside of Asia.

Last December, the Bahia regional ministry for works (MPT) revealed findings of what it called “degrading working conditions” at the site. Reports indicated that workers were forced to sleep without proper bedding and shared bathrooms—in one instance, 31 workers used a single bathroom. The agency also noted that many laborers exhibited visible signs of skin damage from prolonged exposure to the sun while on the job.

The MPT has raised suspicions of “forced labor” underlined by illegal provisions within workers’ contracts, passport confiscations, and significant wage deductions—up to 70 percent of their pay being withheld. Alarmingly, the workers were reportedly monitored by armed personnel. In response to these claims, BYD’s Brazilian branch stated that it had terminated its contract with the Jinjiang contractor that oversaw the project operations.

Jinjiang has denied the allegations of slavery, asserting their compliance with labor laws. Meanwhile, the MPT is pursuing 257 million reais, equivalent to about $45.3 million, aimed at compensating for what they term “collective moral damages,” in addition to advocating for individual compensation for each affected worker. The civil lawsuit was filed after BYD and its partners declined to agree to a proposed “conduct adjustment agreement” from Brazilian officials.

On Thursday, BYD released a statement asserting its ongoing cooperation with the MPT and emphasizing its unwavering commitment to upholding human and labor rights, compliant with both Brazilian law and international labor standards. The Chinese Foreign Ministry, represented by spokeswoman Mao Ning, indicated that Beijing takes the protection of workers’ rights very seriously, instructing Chinese firms to adhere to local regulations.

In a disturbing development, Brazilian prosecutors have filed a lawsuit against BYD and its contractors over allegations of human trafficking and labor violations at a construction site in Bahia. The reported conditions are described as similar to slavery, with numerous violations against the workers’ rights. BYD’s commitment to labor laws and engagement with authorities will be tested as the case unfolds, potentially leading to severe financial repercussions for the involved parties.

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