Brazilian authorities have filed a lawsuit against Chinese electric vehicle (EV) manufacturer BYD and two contractors, accusing them of involvement in human trafficking and subjecting workers to conditions “analogous to slavery” at a construction site in Bahia state.
Investigation Uncovers Poor Working and Living Conditions
The Public Labour Prosecutor’s Office (MPT) in Bahia launched an investigation following an anonymous tip, which led to the rescue of 220 Chinese workers. These workers were found living in cramped, unsanitary accommodations—some slept on beds without mattresses, and one toilet was shared by 31 people.
Workers reportedly had their passports confiscated, faced illegal employment contracts with excessive working hours and no weekly rest, and had up to 70% of their salaries withheld. High fees were charged to terminate contracts, effectively trapping the workers in these conditions.
Legal Action and Compensation Demand
The MPT is seeking 257 million Brazilian reais (about $45.5 million) in damages from BYD and its contractors. Construction at the Camacari plant was halted late last year due to these violations.
The factory was intended to be BYD’s first EV plant outside Asia, with plans to open by March 2025. BYD has previously stated a “zero tolerance for violations of human rights and labour laws” but has not commented on this lawsuit.
BYD, which stands for Build Your Dreams, is one of the world’s largest EV manufacturers. It recently outsold Tesla in Europe for the first time. Brazil represents BYD’s largest overseas market, where it has operated a factory in São Paulo since 2015 producing chassis for electric buses.
What The Author Thinks
This case underscores the urgent need for multinational corporations like BYD to take genuine responsibility for labor conditions within their global supply chains. Regardless of market ambitions or sales success, exploiting vulnerable workers is unacceptable and harms the company’s reputation and long-term viability. Ensuring safe, fair working environments must be non-negotiable for all companies operating internationally.
