The Brazilian government has partially halted construction at a site operated by Chinese electric vehicle giant BYD, citing labour conditions described as “comparable to slavery.” Authorities reported that workers were forced to sleep on beds without mattresses, had their wages withheld, and were stripped of their passports.
Workers Rescued from “Deplorable Conditions”
The Brazilian Ministry of Labour and Employment (MPT) announced on Monday that 163 workers had been rescued from what it called “slave-like conditions” at a factory construction site in Camaçari, Bahia. The site is managed by BYD’s subcontractor, Jinjiang Group, which was hired to build an electric vehicle plant. Following inspections in November, the MPT ordered the closure of worker accommodations and part of the construction site.
BYD, the world’s largest manufacturer of electric vehicles, had aimed to have the plant operational by March 2025.
According to the MPT, the workers, recruited in China and brought to Brazil, faced grueling conditions, including long working hours of up to seven days a week. They were housed in overcrowded accommodations that lacked basic amenities.
Alarming Living Conditions
Inspectors revealed appalling living standards in four main accommodations in Bahia. In one lodging, 31 workers shared a single toilet, and beds were provided without mattresses. Workers were required to wake at 4 a.m. to prepare for their shifts, which began by 5:30 a.m. Another facility, primarily housing welders, offered little better: beds were covered with only thin, three-centimetre padding, or left bare.
Food hygiene was also severely inadequate, and on-site facilities were unsanitary. Six chemical toilets served 600 workers, and their condition was described as “deplorable.”
Forced Labour Allegations
The MPT’s findings went beyond poor living standards, alleging forced labour practices. Workers were reportedly required to pay deposits upon employment, with 60% of their wages withheld. Termination of contracts was bound by excessive conditions, including forfeiting withheld wages and deposits. Passports were also confiscated, leaving workers unable to return home without financial penalties.
One worker, who had been working continuously for 25 days, suffered an accident attributed to exhaustion. Another sustained an eye injury but did not receive adequate medical attention.
Enforcement and BYD’s Response
The Brazilian authorities have suspended operations at the affected site until all conditions are regularised. They also terminated the employment contracts of the rescued workers, who have since been relocated to a hotel.
BYD has since severed ties with Jinjiang Group, issuing a statement reaffirming its commitment to complying with Brazilian labour laws and protecting workers’ rights. Alexandre Baldy, senior vice-president of BYD Brazil, stated that the company is taking measures to safeguard subcontracted workers’ rights and dignity.
Market Implications
Brazil, the largest economy in South America, has been a key market for BYD’s electric and hybrid vehicles. The company sold over 66,000 units in the country by November 2024. However, the incident raises questions about BYD’s operational oversight and the practices of its subcontractors, potentially affecting its reputation in a growing market for sustainable transportation.
