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Carmaker BYD is facing a major lawsuit from the Brazilian government over what has been described as ‘slave-like’ working conditions at a factory site in Bahia, Brazil. The lawsuit targets not only BYD but also two of its contractors, accusing the three parties of participating in human trafficking and perpetuating conditions akin to modern-day slavery.
The investigation into the factory site was initiated by the Public Labour Prosecutor’s Office (MPT) following an anonymous complaint. The inquiry led to the rescue of 220 Chinese laborers who were reportedly living in deplorable conditions at the construction site.
The MPT is seeking damages totaling 257 million Brazilian reais (approximately $45.5 million or £33.7 million) from BYD and its contractors as compensation for the violations of human rights and labor laws. Despite attempts to reach out to BYD for comment, the company did not provide a immediate response. However, BYD has previously stated its commitment to upholding human rights and complying with labor regulations.
According to the MPT, workers at the factory site were subjected to overcrowded and unsanitary living conditions. Some employees were reportedly sleeping on beds without mattresses, and there was only one restroom for the entire workforce. Additionally, workers were allegedly made to sign contracts with illegal clauses, forced to work long hours without adequate rest, and had their passports confiscated.
The prosecution stated that workers were also required to pay exorbitant fees to terminate their contracts and were subjected to wage deductions of up to 70%. These exploitative practices are in violation of Brazilian labor laws and are considered to be indicative of modern-day slavery.
The factory site in Camacari, Bahia, was expected to be BYD’s first electric vehicle (EV) manufacturing facility outside of Asia, with operations planned to commence by March 2025. BYD, which stands for “Build Your Dreams,” has emerged as a major player in the electric vehicle industry, surpassing Tesla in European sales in April, according to research by Jato Dynamics.
As Brazil represents a key market for BYD’s international expansion efforts, the company has been keen on expanding its presence in the country. In 2015, BYD established a plant in São Paulo for the production of electric bus chassis, marking its initial foray into the Brazilian market.
The allegations of slave-like working conditions at the factory site have raised concerns about BYD’s corporate responsibility practices and supply chain management. The lawsuit filed by the Brazilian government highlights the need for greater oversight and accountability in the global automotive industry to ensure that workers’ rights are respected and protected.
Moving forward, it will be essential for BYD to address the issues raised in the lawsuit, prioritize the welfare of its employees, and take concrete steps to prevent similar violations from occurring in the future. By upholding the highest standards of ethical conduct and demonstrating a commitment to social responsibility, BYD can rebuild trust with stakeholders and safeguard its reputation as a leading player in the electric vehicle market.
