Carmaker BYD, which stands for “Build Your Dreams,” is facing a lawsuit from the Brazilian government over allegations of “slave-like” working conditions at a factory building site in Bahia, Brazil. The lawsuit names BYD, a major Chinese electric vehicle (EV) manufacturer, and two of its contractors as complicit in the exploitation of Chinese laborers at the site.
The investigation into the working conditions at the factory site was prompted by an anonymous complaint received by the Public Labour Prosecutor’s Office (MPT) in Bahia. As a result of the inquiry, 220 Chinese laborers were rescued from what authorities described as conditions “analogous to slavery” and indicative of human trafficking.
The MPT is seeking damages totaling 257 million Brazilian reais, equivalent to $45.5 million or 33.7 million pounds, from BYD and its contractors. The lawsuit alleges that workers at the site were living in overcrowded and unsanitary conditions, with inadequate facilities for basic needs such as restrooms and sleeping arrangements.
Furthermore, the MPT claims that the workers were subject to illegal employment contracts, excessively long hours, and denial of weekly rest periods. Additionally, the prosecution alleges that workers had their passports confiscated and were forced to pay exorbitant fees to terminate their contracts, with significant portions of their wages being withheld.
Brazilian law defines “slavery-like conditions” as situations involving debt bondage and violations of human dignity through exploitative labor practices. The MPT has categorized the conditions at the BYD factory site as falling within this definition, prompting legal action against the company and its contractors.
The factory site in question was located in Camacari, a city in Brazil’s northeastern region. The facility was intended to be BYD’s first electric vehicle (EV) factory outside of Asia, with production slated to begin by March 2025. BYD has been a significant player in the global EV industry, recently surpassing Elon Musk’s Tesla in European sales, according to research from Jato Dynamics.
BYD had been seeking to expand its presence in Brazil, with the construction of the factory in Camacari representing a key step in this strategy. The company had previously established a plant in São Paulo in 2015 to produce electric bus chassis, signaling its commitment to the Brazilian market.
When approached for comment by the BBC regarding the lawsuit and allegations of labor exploitation, BYD did not provide an immediate response. However, the company has previously stated its commitment to upholding human rights and labor laws, emphasizing a “zero tolerance” policy for violations in these areas.
The outcome of the lawsuit against BYD and its contractors remains to be seen, as the legal process unfolds in Brazil’s courts. The case has drawn attention to the ongoing challenges of ensuring fair and ethical labor practices in the global automotive industry, particularly in the context of supply chains that span multiple countries and regions.
