Latest news with #FabioLeal
Yahoo
3 days ago
- Business
- Yahoo
China's BYD is sued over 'slave-like' labor conditions
One day after BYD (BYDDY) overtook Tesla's (TSLA) market share in Europe, the Chinese EV maker and two of its contractors were sued by the Brazilian government for subjecting 220 Chinese workers in the South American country to 'slavery-like conditions.' The construction site of a new BYD factory in Camacari, in the northeastern Brazilian state of Bahia, was set to open in March 2025, but was shut down by the government there in December 2024, citing 'degrading' conditions. Those conditions included armed surveillance, beds without mattresses, one toilet for 31 workers, unrefrigerated food, workers' passports and salaries being withheld, and exhaustive work without rest. Under Brazilian law, the definition of slavery includes debt bondage and conditions that violate workers' dignity. BYD and the two contractors are being sued for $45.5 million. The Chinese citizens entered the country 'irregularly,' says Brazil's labour ministry, 'with a work visa for specialized services that did not correspond to the activities actually developed in the work.' Brazil is BYD's largest overseas market. BYD, which stands for 'Build Your Dreams,' opened a São Paulo factory in 2015 where it builds chassis for electric buses. The Camacari plant was to be BYD's first full-fledged EV plant outside of Asia. Fabio Leal, a deputy labor prosecutor, told Reuters in December that the ministry had been in talks with BYD and the two contractors after the plant was shut down, but that no agreement could be found. That month, BYD claimed that reports of poor conditions were intended to smear China and Chinese brands, and that calling their employees 'enslaved' insulted their dignity. For the latest news, Facebook, Twitter and Instagram.
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Business Standard
3 days ago
- Automotive
- Business Standard
Brazil sues China's BYD over worker trafficking, abuse at EV plant site
Brazilian labour prosecutors have filed a lawsuit against Chinese electric vehicle (EV) giant BYD and two of its contractors, JinJiang and Tecmonta. They have charged the automaker for alleged human trafficking and 'slavery-like conditions' faced by Chinese workers constructing a BYD factory in the state of Bahia, news agency Reuters reported. The lawsuit, filed on Tuesday, seeks 257 million reais ($45 million) in moral damages from the three companies, alongside individual compensation for the 220 Chinese workers who were allegedly exploited. The Public Labour Prosecutor's Office (MPT) is also demanding compliance with a series of labor regulations and an additional fine of 50,000 reais for each violation, multiplied by the number of affected workers. Workers lived in overcrowded, unsanitary conditions The factory, located in the city of Camacari in northeastern Brazil, was intended to be BYD's first EV manufacturing facility outside Asia and was scheduled to begin operations in March 2025. However, construction was halted late last year after Brazilian authorities found alarming labor violations following an anonymous complaint, BBC reported. According to prosecutors, the 220 Chinese workers were found living in cramped quarters, with some sleeping on beds without mattresses and sharing a single toilet among 31 people. They were allegedly subjected to exhausting work hours, denied weekly rest, and forced to sign employment contracts with illegal clauses. The MPT said workers also had their passports confiscated, up to 70 per cent of their salaries withheld, and faced high penalties for terminating their contracts. Under Brazilian law, 'slavery-like conditions' include debt bondage, degrading work environments, and violations of human dignity. BYD responds, denies wrongdoing In a statement, BYD said it is committed to upholding human rights and adheres to both Brazilian and international labour standards. The company noted that it has been cooperating with labor prosecutors and intends to address the allegations through legal proceedings. It has previously stated that it maintains a "zero tolerance for violations of human rights and labour laws". Fabio Leal, a deputy labour prosecutor, said that negotiations with the companies began in late December but failed to reach an agreement. "The workers were brought to Brazil illegally and promised working conditions that were not fulfilled," Leal said. "Our lawsuit is very well-founded, with a substantial amount of evidence provided during the investigation process." Leal confirmed that the Chinese workers, who have since returned to China, are expected to receive any compensation awarded through the lawsuit, with the companies in Brazil required to prove the payments were made. He added that while a court-mediated settlement remains possible, it would now need to be facilitated through the judicial system. BYD, which stands for 'Build Your Dreams', is one of the world's largest EV manufacturers. In April, it surpassed Tesla in sales across Europe for the first time, the BBC report said. The company has been steadily expanding in Brazil, its largest overseas market, where it opened its first facility in Sao Paulo in 2015 to produce electric bus chassis. (With agency inputs)
Yahoo
3 days ago
- Business
- Yahoo
BYD faces $45m lawsuit in Brazil over labour rights
Brazilian labour prosecutors have initiated legal action against Chinese carmaker BYD, accusing the company and its contractors of human trafficking and exposing workers to "slavery-like conditions" in the construction of a factory. BYD, along with contractors JinJiang and Tecmonta, faces a lawsuit seeking 257 million reais ($45m) in moral damages, with additional individual compensation for the workers. The lawsuit also aims to enforce labour regulations and suggests fines of 50,000 reais per infraction, multiplied by the number of workers affected. In their defence, BYD has stated its commitment to human rights and adherence to Brazilian and international labour laws. The company has been in discussions with labour prosecutors and intends to formally respond to the allegations through court documents. The labour prosecutors' office revealed that in December 2024, 220 Chinese workers employed by BYD contractors in Bahia, Brazil, were discovered working under conditions likened to modern slavery. These workers, who have since returned to China, were also deemed victims of international human trafficking. Deputy labour prosecutor Fabio Leal mentioned that negotiations with the three companies started in late December but did not lead to a resolution. Leal emphasised that the workers were brought to Brazil under false pretences and were not provided with the promised working conditions. Leal further explained that any compensation awarded from the lawsuit would be distributed to the workers in China, with the responsibility of proving payment resting on the Brazilian companies. He also noted that while a settlement is still an option, it would now require court mediation. Leal stated: "Our lawsuit is very well-founded, with a substantial amount of evidence provided during the investigation process." "BYD faces $45m lawsuit in Brazil over labour rights" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Time of India
3 days ago
- Automotive
- Time of India
Brazil prosecutors sue Chinese carmaker BYD for violating labor rights
Brazilian labor prosecutors filed a lawsuit on Tuesday against Chinese carmaker BYD , holding it responsible for human trafficking and " slavery-like conditions " for workers building a factory in its biggest market outside China. The lawsuit seeks 257 million reais ($45 million) in moral damages from BYD and two contractors, JinJiang and Tecmonta, according to the statement from the labor prosecutors' office, along with individual compensation for workers. Prosecutors are also looking to force the companies to comply with various labor rules and seek a fine of 50,000 reais for each breach, multiplied by the number of affected workers. In response, BYD said it is committed to upholding human rights and respects Brazilian and international labor protections. The company also said in a statement that it has been cooperating with labor prosecutors and will respond to the lawsuit in court documents. In December, prosecutors said 220 Chinese workers hired by BYD contractors in the Brazilian state of Bahia were found working in "slavery-like conditions." Prosecutors said they were also victims of international human trafficking . Fabio Leal, a deputy labor prosecutor, said in an interview that talks with the three companies began in late December, but failed to reach an agreement. He declined to provide further details on why the talks were unsuccessful. Leal said the workers were brought to Brazil illegally and promised working conditions that were not fulfilled. He said the Chinese workers, who have all returned to China, would receive any payouts from a lawsuit there, with the companies in Brazil responsible for providing proof of payment. Leal added that a settlement is still possible, although now it will need to be facilitated through the court. "Our lawsuit is very well-founded, with a substantial amount of evidence provided during the investigation process," he said.
CNN
4 days ago
- Business
- CNN
Brazil prosecutors sue Chinese carmaker BYD for violating labor rights
Brazilian labor prosecutors filed a lawsuit on Tuesday against Chinese carmaker BYD, holding it responsible for human trafficking and 'slavery-like conditions' for workers building a factory in its biggest market outside China. The lawsuit seeks 257 million reais ($45 million) in moral damages from BYD and two contractors, JinJiang and Tecmonta, according to the statement from the labor prosecutors' office, along with individual compensation for workers. Prosecutors are also looking to force the companies to comply with various labor rules and seek a fine of 50,000 reais for each breach, multiplied by the number of affected workers. In response, BYD said it is committed to upholding human rights and respects Brazilian and international labor protections. The company also said in a statement that it has been cooperating with labor prosecutors and will respond to the lawsuit in court documents. In December, prosecutors said 220 Chinese workers hired by BYD contractors in the Brazilian state of Bahia were found working in 'slavery-like conditions.' Prosecutors said they were also victims of international human trafficking. Fabio Leal, a deputy labor prosecutor, said in an interview that talks with the three companies began in late December, but failed to reach an agreement. He declined to provide further details on why the talks were unsuccessful. Leal said the workers were brought to Brazil illegally and promised working conditions that were not fulfilled. He said the Chinese workers, who have all returned to China, would receive any payouts from a lawsuit there, with the companies in Brazil responsible for providing proof of payment. Leal added that a settlement is still possible, although now it will need to be facilitated through the court. 'Our lawsuit is very well-founded, with a substantial amount of evidence provided during the investigation process,' he said.
