Brazilian prosecutors sue Chinese carmaker BYD over labour conditions
Brazilian labour prosecutors have filed a lawsuit against the Chinese auto manufacturer BYD and two contractors over allegations of illegally trafficking labourers to live and work under conditions 'analogous to slavery'.
On Tuesday, the prosecutors, charged with enforcing labour laws, said in a statement that they would seek 257 million reais ($45m) in damages from BYD as well as contractors China JinJiang Construction Brazil and Tecmonta Equipamentos Inteligentes.
They accused the three companies of trafficking Chinese workers to build a BYD plant in Camacari, in the northeastern state of Bahia. There, the prosecutors allege that the companies subjected the workers to 'extremely degrading' conditions.
'In December last year, 220 Chinese workers were found to be in conditions analogous to slavery and victims of international human trafficking,' the statement said.
The damages the prosecutors are seeking amount to a penalty of 50,000 reais ($8,867) per violation, multiplied by the number of workers affected, in addition to moral damages.
The lawsuit is the result of a police raid in December 2024, during which authorities say they 'rescued' 163 Chinese workers from Jinjiang and 57 from Tecmonta.
The prosecutors say the workers were victims of international human trafficking and were brought to Brazil with visas that did not fit their jobs.
They also allege that conditions at the construction site left the labourers almost totally dependent on their employers, by withholding up to 70 percent of their wages and imposing high contract termination costs. Some of the workers even had their passports taken away, limiting their ability to leave, according to the prosecutors.
The lawsuit also describes meagre living conditions, including some beds without mattresses.
'In one dormitory, only one toilet was identified for use by 31 people, forcing workers to wake up around 4am to wash themselves before starting their workday,' the prosecutors' statement notes.
Brazil is the largest market for BYD outside China. The Chinese auto giant has said that it is committed to human rights, is cooperating with authorities and will respond to the lawsuit in court.
A spokesman for the company said in December that allegations of poor working conditions were part of an effort to 'smear' China and Chinese companies.
But the Brazilian labour prosecutors rejected the notion that their lawsuit was based on anti-Chinese sentiment.
'Our lawsuit is very well-founded, with a substantial amount of evidence provided during the investigation process,' deputy labour prosecutor Fabio Leal said in an interview.
He stated that the workers, who have all returned to China, would receive any payments related to the lawsuit there, with the companies in Brazil responsible for providing proof of payment.
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