Brazil has stopped the construction of a BYD factory due to “slavery-like” worker conditions. Local prosecutors revealed that over 160 workers were rescued from a degrading environment in Bahia state. These workers, hired by Jinjiang Construction Brazil, allegedly lived in overcrowded accommodations and had their passports and wages withheld.
Rescued Workers Faced Harsh Conditions
Workers lived in four facilities in Camaçari city, with reports highlighting dire living conditions. Some slept on beds without mattresses, while others shared a single bathroom with 31 people. Prosecutors described the conditions as “precarious and degrading.” Brazilian law defines “slavery-like conditions” as those violating human dignity, including debt bondage and forced labor.
BYD responded by severing ties with the construction company and relocating affected workers to hotels. The company said it had previously requested improvements and conducted a review of the working conditions.
BYD’s Expansion Plans in Brazil
BYD, one of the largest EV makers, planned to open its first EV plant outside Asia by March 2025. The company has a significant presence in Brazil, its largest overseas market, where it first opened a factory in São Paulo in 2015. Last year, BYD announced a $484.2 million investment to establish an EV manufacturing plant.
Despite BYD’s growth, international concerns remain over Chinese government subsidies that boost EV sales in China. Countries like the US and EU have implemented tariffs on Chinese EV imports, citing unfair advantages.
BYD has expressed its commitment to Brazilian labor laws and aims to maintain ethical practices as it expands globally.