Brazilian prosecutors sue automobile giant BYD for alleged slave labor

A team of Brazilian prosecutors filed a lawsuit against Chinese electric car giant BYD and two contractor companies for alleged slave labor and human trafficking in Brazil.

The news came to light this Thursday after news agency AFP shared court documents it had accessed.

According to the media, the legal action concerns 220 Chinese workers who were found last December in conditions "analogous to slavery" during the construction work of BYD's industrial plant in the municipality of Camaçari, in the state of Bahia, in the northeast of the Latin American country.

The class action lawsuit

The Public Ministry of Labor (MPT) of Bahia is claiming 257 million reais ($45.3 million) for collective moral damages, in addition to individual payments to each worker. The agency claims that, following an anonymous complaint, agents "found the workers overcrowded in accommodations without the minimum conditions of comfort and hygiene," according to a statement.

The workers had work contracts with illegal clauses, their passports had been withheld and they were being watched by armed guards. Since last December there had been rumors in the media of labor abuses related to BYD in Brazil.

In addition, they slept in beds without mattresses, and in one of the acommodations there was only one bathroom for 31 people, so they had to get up at 4 a.m. before starting strenuous working days without weekly rest, detailed the official message.

According to the lawsuit, the companies withheld up to 70% of the workers' salaries and required them to pay a bond. If they terminated the contract before six months, they lost both the bond and the retained values, in addition to having to pay for the return ticket to their country of origin.

It was also found that the 220 workers entered Brazil illegally, with work visas for specialized services that did not correspond to the activities actually carried out on site.

Chinese government dissociates itself from BYD

Since March 2024, Build Your Dreams (BYD) started up in Brazil what would be the firm's largest electric car factory outside Asia. It is expected to be operational by 2026, after its debut was delayed due to the scandal.

The civil action was filed after the companies' refusal to sign a "conduct adjustment agreement" proposed by Brazilian authorities, said the MPT.

Chinese Foreign Ministry spokeswoman Mao Ning told reporters Thursday that the Chinese government "attaches great importance to protecting and guaranteeing the legitimate rights and interests of workers," and requires Chinese companies to "operate in accordance with laws and regulations."

The contractors being sued are JinJiang and Tonghe, whose current name is Tecmonta. After the situation became known at the end of December, BYD Auto do Brasil announced the termination of the contract with Jinjiang.