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Carmaker BYD faces a lawsuit from the Brazilian government over alleged “slave-like” working conditions at a factory building site in Bahia. The lawsuit names BYD, a major Chinese electric vehicle (EV) manufacturer, along with two of its contractors.
The investigation into the factory began in response to an anonymous complaint, which revealed troubling conditions for the workers. 220 Chinese laborers were rescued from the site, prompting the Public Labour Prosecutor’s Office (MPT) to take action against the companies involved.
The MPT is seeking a significant sum of 257 million Brazilian reais, which is approximately $45.5 million or £33.7 million, in damages from BYD and its contractors. The lawsuit alleges that the workers were subjected to deplorable living conditions, with inadequate hygiene and overcrowded quarters. It is claimed that several employees slept on beds without mattresses, and there was only one restroom for the entire workforce.
Furthermore, the MPT contends that the workers were forced to sign employment contracts with illegal clauses, endure exhausting work hours without rest, and had their passports confiscated. The workers allegedly faced exorbitant fees to terminate their contracts, with up to 70% of their wages being withheld–actions that violate Brazilian labor laws and human rights.
Brazilian law defines “slavery-like conditions” as debt bondage and degradation of human dignity through labor exploitation. The violation of these laws has led to the trial and the suspension of the factory’s development last year in response to the findings.
The factory in question was being constructed in Camacari, in Brazil’s northeast, and was intended to be BYD’s first electric vehicle (EV) factory outside of Asia. The facility was scheduled to be operational by March 2025, but the legal proceedings have halted its progress.
BYD, an abbreviation for “Build Your Dreams,” is a prominent player in the electric vehicle industry, surpassing Tesla in European sales in April, according to research from Jato Dynamics. With its significant presence in the international market, the company has been striving to expand its operations in Brazil.
This lawsuit highlights the importance of upholding labor standards and respecting the rights of workers in all industries. It serves as a reminder that companies must prioritize the well-being of their employees and comply with labor laws to prevent exploitation and abusive practices.
The case against BYD and its contractors in Brazil underscores the need for greater oversight and accountability in the global supply chain to ensure that workers are treated fairly and ethically. It also emphasizes the role of regulatory bodies in monitoring and enforcing labor standards to protect vulnerable employees from exploitation and abuse.
