Brazilian authorities have taken legal action against Chinese electric vehicle maker BYD and two of its contractors. The companies are accused of human trafficking and forcing workers to endure conditions that Brazilian law compares to modern-day slavery at a construction site in Bahia state.
The Public Labour Prosecutor’s Office in Bahia started investigating after receiving an anonymous tip. The probe led to the rescue of 220 Chinese workers who were reportedly subjected to exploitative labor practices. Prosecutors are demanding compensation of 257 million Brazilian reais, which is about $45.5 million or £33.7 million, from the three companies involved.
Work at the factory site was stopped late last year when officials found troubling living conditions. Workers lived in crowded rooms with very poor sanitation. Some had no mattresses to sleep on and 31 workers shared a single toilet. Authorities also reported that workers had their passports taken away and were forced to sign illegal contracts. These contracts required long working hours without weekly rest and withheld up to 70 percent of their wages. Workers faced heavy financial penalties if they tried to leave.
The factory is located in Camacari, a city in northeast Brazil. It was planned to open by March 2025 and would have been BYD’s first electric vehicle production plant outside Asia. Under Brazilian law, labor conditions that involve debt bondage or strip workers of dignity are classified as “slave-like.”
BYD has not made any new comments on the lawsuit. Earlier, the company said it has a strict policy against labor violations and human rights abuses.
BYD is one of the largest electric vehicle manufacturers in the world. In April, it reportedly surpassed Tesla in European sales for the first time, based on data from the research firm Jato Dynamics. Brazil is BYD’s biggest international market. The company began operations there in 2015 with a factory in São Paulo that makes electric bus chassis. This lawsuit could disrupt BYD’s plans to expand rapidly across Latin America.
