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News.com.au
5 days ago
- Business
- News.com.au
Brazil sues China's BYD over 'slavery' conditions on build site
Brazilian prosecutors are suing Chinese electric car giant BYD and two contracting companies for human trafficking and alleged slave labor conditions at a build site, according to legal documents seen by AFP Thursday. The case concerns 220 Chinese workers found last December in conditions "analogous to slavery" at a BYD plant under construction in Camacari, in the northeastern state of Bahia. Bahia's regional ministry for works (MPT) said in December it had found "degrading working conditions" at the site being built, expected to be BYD's largest electric car plant outside Asia. Workers slept without mattresses and, in one case, 31 people had to share a bathroom, it said. Laborers had "visible signs of skin damage" from working long hours under the sun. The MPT said it also suspected "forced labor," with illegal clauses in workers' contracts, passports confiscated and the employer withholding as much as 70 percent of their salary. Workers were monitored by armed guards. After the allegations were made public, BYD's Brazilian subsidiary said it had broken its contract with the Jinjiang contractor responsible for work on the site. Jinjiang denied the slavery allegation. The MPT is now seeking 257 million reais ($45.3 million) for "collective moral damages," as well as individual payments for each worker. The civil suit against BYD, Jinjiang and Tonghe Intelligent Equipment (now Tecmonta) was filed after the companies refused to sign a "conduct adjustment agreement" proposed by Brazilian authorities, the MPT said. On Thursday, BYD said in a statement it had collaborated with the MPT from the beginning, and "reaffirms its non-negotiable commitment to human and labor rights, guiding its activities by respecting Brazilian legislation and international labor protection standards." Chinese foreign ministry spokeswoman Mao Ning told reporters Beijing "places great importance on protecting and safeguarding workers' legitimate rights and interests," and requires Chinese companies to "operate in compliance with laws and regulations."
Auto Blog
5 days ago
- Business
- Auto Blog
Brazilian Prosecutors Sue BYD Over 'Slave-Like' Work Conditions at Factory Site
One of the world's most prolific automakers, the Chinese giant BYD, has been formally accused by Brazilian authorities in a newly filed lawsuit of subjecting its workers to what they described as being akin to modern slavery and engaging in international human trafficking. The suit, which is being filed against BYD and two contractors, JinJiang and Tecmonta, seeks 257 million reais (~$50 million) in damages and individual restitution for the workers affected. Withheld passports and crowded conditions are among the accusations The suit itself stems from an investigation that started late last year, when the Public Labour Prosecutor's Office (MPT) in the Brazilian state of Bahia halted work at the construction site of BYD's new factory in Camaçari after they rescued a total of 220 Chinese nationals who were employed to help build the factory. Authorities state that workers were subjected to abhorrent living and working conditions at the plant that they described back in December as 'an alarming picture of precariousness and degradation,' where workers slept in crowded dormitories with bunk beds without mattresses and only one bathroom per every 31 workers; which forced them to wake up at 4 a.m. everyday to prepare for their 5:30 a.m. shifts at the site. 'All the accommodations shared serious infrastructure and hygiene problems,' the MPT wrote back in December, translated from Portuguese. 'The bathrooms, in addition to being insufficient, were not separated by sex, did not have adequate toilet seats, and presented poor hygiene conditions. The lack of a suitable place to wash clothes led workers to use their own bathrooms for this purpose.' In addition, the MPT wrote in its suit that due to the conditions that BYD and the two subcontractors subjected workers to, workers were at an increased risk of accidents due to the negligence of occupational health and safety standards at the site. In the MPT's December 2024 report, they recorded that they recorded 'several workplace accidents,' including one where a worker suffered an accident 'due to sleep deprivation caused by inadequate housing conditions and long working hours,' as well as a worker who didn't receive proper medical care following an eye injury. The prosecutors also claimed that the BYD workers were brought to Brazil to build the factory without the proper visas, that their employers pocketed up to 70% of their wages, and subjected them to immense financial penalties to terminate their contracts. Many of the workers also had their passports taken away and worked under 'employment contracts with illegal clauses, exhausting work hours, and no weekly rest.' BYD Dolphin — Source: BYD Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Brazilian law says that debt bondage and work that violates human dignity are defined as 'slavery-like conditions.' In a statement seen by the Associated Press, BYD said that it is collaborating with Brazilian authorities and has been throughout the probe into its working conditions. The automaker also stated that it respects Brazilian law and international labor regulations. However, in December, BYD spokesperson Li Yunfei posted on Weibo that efforts were made to 'smear' brands like BYD. 'In the matter of smearing Chinese brands, smearing China, and attempting to undermine the friendship between China and Brazil, we have seen how relevant foreign forces maliciously associate and deliberately smear,' Yunfei said about media reports about the situation. Final thoughts The BYD plant in Bahia was supposed to open in March, but the suit shows how much companies like BYD are willing to stick to a solid dollar and cents figure for foreign factories in emerging markets like Brazil. In a statement for Deutsche Welle, Paulo Feldmann, an economist and professor at the FIA Business School in Sao Paulo, found that BYD's use of Chinese workers in Brazil is similar to how other Chinese companies operate in places like Africa and other Latin American countries. Still, they offer no tangible benefits to the local population. 'For Brazil, it would have been better if these workers had been local, because of the income they would have generated for themselves and their families, the positive impact on their communities, and the professional training they would have acquired. It would also be easier to monitor their working conditions,' he said. Chinese labor conditions have been a pressing issue in other sectors besides construction and industrial factories. For instance, the 996 working hour system (which requires employees to work from 9:00 am to 9:00 pm, 6 days per week; or 72 hours per week, 12 hours per day) has been a significant issue surrounding major tech and internet companies in the country including Alibaba, Huawei and ByteDance, the parent company of TikTok.
The Independent
6 days ago
- Business
- The Independent
Brazil sues Chinese electric carmaker BYD over ‘slave-like' conditions of workers
Brazilian prosecutors have filed a lawsuit accusing electric carmaker BYD of human trafficking and keeping its workers in 'slavery-like conditions' in its biggest market outside China. The suit seeks over £33m in moral damages from the Chinese EV giant as well as contractors JinJiang Construction Brazil and Tecmonta, according to a statement by Brazil 's Public Labour Prosecutor's Office, or MPT. The lawsuit comes on the heels of an investigation that led to the rescue of 220 Chinese workers from the construction site of BYD's new factory in Camacari city in the northeast of Brazil last December. The investigation found the Chinese workers were brought to Brazil under false pretences and their visas did not match their jobs. Prosecutors said the workers were found working in 'slavery-live conditions' and with "minimum comfort and hygiene', calling them victims of international human trafficking The workers were forced to sleep on beds that did not have mattresses and as many as 30 people shared a bathroom, MPT alleged. 'Working conditions were extremely degrading. Five settlements were kept by BYD, JinJiang and Tecmonta. Some workers slept on beds without mattresses and had their personal belongings alongside with their food,' it claimed. 'There were few bathrooms, which were not gender-assigned. In one of the settlements, there was one toilet for 31 people, forcing workers to wake up at 4am for their personal hygiene before their work.' MPT also claimed the workers were under "employment contracts with illegal clauses, exhausting work hours and no weekly rest'. The prosecutors are seeking to force the carmaker and the contractors to follow labour laws and fine them 50,000 Brazilian reais (£6,575) for each violation. This fine will be multiplied by the number of workers affected by the violation. BYD said it was cooperating with the prosecutors and would respond to the lawsuit in court. The company further said that it was committed to upholding human rights and respecting Brazilian and international labour protections. Fabio Leal, deputy labour prosecutor, said talks in late December with the three companies had failed to reach an agreement but did not explain why the talks collapsed. Mr Leal said the Chinese workers had all returned home and they would receive compensation from any payment received from the lawsuit. 'Our lawsuit is very well-founded, with a substantial amount of evidence provided during the investigation process,' he said, adding that a settlement was still possible but through the courts. The BYD factory in Camacari was set to be operational by March 2025, but the work was halted pending investigations. It was set to be BYD's first and biggest plant outside Asia. BYD, short for Build Your Dreams, is a major player in the electric vehicles market, producing both passenger vehicles and electric buses. The company has been seeking to expand in Brazil, which is its largest overseas market.
Yahoo
7 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
7 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.
