Brazilian Authorities Halt BYD Factory Construction Citing ‘Slavery-Like’ Conditions

Officials in Brazil have suspended building work at a site designated for Chinese electric vehicle (EV) manufacturer BYD, stating that laborers were subjected to circumstances akin to “slavery.” The Public Labour Prosecutor’s Office (MPT) reported that over 160 individuals were freed in the northeastern Brazilian state of Bahia. A construction firm reportedly subjected them to a “degrading” setting and retained their passports and wages. In a statement, BYD announced it had severed its relationship with the implicated company and reaffirmed its dedication to a “full compliance with Brazilian legislation.” This facility was slated to commence operations by March 2025 and represented BYD’s inaugural EV manufacturing site beyond Asia. Employees, engaged by Jinjiang Construction Brazil, resided across four different sites within Camaçari city. Prosecutors indicated that at one of these locations, laborers were compelled to sleep on beds lacking mattresses. Additionally, each bathroom was utilized by 31 workers, necessitating extremely early awakenings to prepare for their shifts. The MPT stated, “The conditions found in the lodgings revealed an alarming picture of precariousness and degradation.” Brazilian legal statutes define “Slavery-like conditions” as encompassing debt bondage and labor that infringes upon human dignity. Furthermore, the MPT noted that the circumstances also amounted to “forced labour,” given that numerous workers had their earnings retained and encountered exorbitant fees for ending their employment agreements. BYD reported that the impacted workers were relocated to hotels. The company also mentioned having performed a “detailed review” of the employment and accommodation standards for its subcontracted personnel, and had requested the construction company to implement enhancements on “several occasions.” BYD, an acronym for Build Your Dreams, ranks among the globe’s foremost electric vehicle manufacturers. In the final three months of 2023, it surpassed Elon Musk’s Tesla in electric vehicle sales, as both companies vied for market leadership. The corporation has also been broadening its presence in Brazil, which stands as its most significant international market by a considerable margin. It inaugurated a plant in São Paulo in 2015, manufacturing chassis for electric buses. Last year, it declared plans to allocate 3 billion reais ($484.2m) for the construction of an EV production facility in Brazil. Government subsidies have propelled EV sales within China, incentivizing consumers to exchange their gasoline-powered vehicles for electric or hybrid alternatives. However, international opposition is mounting against what some perceive as the Chinese government’s inequitable backing of its domestic automotive manufacturers. Key markets such as the US and the EU have imposed tariffs on Chinese-made EVs, with additional tariffs anticipated under the forthcoming administration of US president-elect Donald Trump.