Authorities in Brazil's northeastern state of Bahia have halted the construction of a factory by BYD, the Chinese electric vehicle manufacturer, citing living conditions that are allegedly comparable to slavery. The Public Labour Prosecutor's Office (MPT) reported that more than 160 workers were rescued from a degrading environment where they had their wages withheld and faced unfathomable living conditions. The workers, who were hired by Jinjiang Construction Brazil, lived in overcrowded accommodations and were found sleeping on beds without mattresses, with shared bathrooms serving 31 individuals, compelling them to wake up exceedingly early to prepare for work.
BYD Factory Construction Halted in Brazil Amid Allegations of Slavery-like Conditions
BYD Factory Construction Halted in Brazil Amid Allegations of Slavery-like Conditions
Brazilian authorities shut down BYD's factory site due to severe labor abuses, rescuing over 160 workers from precarious living conditions.
The MPT described the situation as indicative of "forced labour," as many workers were unable to access their wages and faced exorbitant fees for terminating their employment contracts. BYD has since distanced itself from the construction firm involved, asserting its dedication to compliance with Brazilian labor laws and stating that the affected workers have been relocated to hotels. The company also conducted a thorough review of living and working conditions for its subcontracted employees and had made efforts to urge improvements from the construction firm.
BYD, which has gained considerable prominence in the electric vehicle market, outsold Tesla in the last quarter of 2023 and has been aggressively expanding its presence in Brazil, the largest market outside of Asia. The factory was intended to be operational by March 2025, further cementing BYD's investment strategy in the region, following its 3 billion reais investment to build a manufacturing plant after opening a facility in São Paulo in 2015.
Despite these developments, the situation highlights a growing scrutiny of Chinese enterprises overseas amid tensions surrounding trade policies, particularly with countries like the US and EU implementing tariffs on Chinese EVs as they perceive unfair support for local manufacturers from the Chinese government.
As Brazil continues to navigate its socio-economic landscape, the scrutiny of labor conditions within foreign investments such as BYD's underscores the critical balance between industrial growth and the safeguarding of workers’ rights.
BYD, which has gained considerable prominence in the electric vehicle market, outsold Tesla in the last quarter of 2023 and has been aggressively expanding its presence in Brazil, the largest market outside of Asia. The factory was intended to be operational by March 2025, further cementing BYD's investment strategy in the region, following its 3 billion reais investment to build a manufacturing plant after opening a facility in São Paulo in 2015.
Despite these developments, the situation highlights a growing scrutiny of Chinese enterprises overseas amid tensions surrounding trade policies, particularly with countries like the US and EU implementing tariffs on Chinese EVs as they perceive unfair support for local manufacturers from the Chinese government.
As Brazil continues to navigate its socio-economic landscape, the scrutiny of labor conditions within foreign investments such as BYD's underscores the critical balance between industrial growth and the safeguarding of workers’ rights.
