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Auto Blog
6 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.
CNN
28-05-2025
- 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.
Yahoo
28-05-2025
- Business
- Yahoo
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.
The Independent
28-05-2025
- Business
- The Independent
Brazilian prosecutors sue China's BYD over allegations of slave-like labor conditions
Brazilian prosecutors said Tuesday they are suing Chinese electric vehicle giant BYD and two of its contractors over allegations of using workers in slave-like labor conditions and engaging in international human trafficking. The labor prosecutors' office in Bahia state said in a statement that they are seeking 257 million Brazilian reais ($50 million) in damages from BYD, China JinJiang Construction Brazil and Tecmonta Equipamentos Inteligentes. The lawsuit stems from an investigation that led to the rescue last year of 220 Chinese workers from the construction site of BYD's new factory in the city of Camaçari. Prosecutors said the workers were brought to Brazil under false pretenses and with visas that did not match their jobs. '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,' the prosecutors' office said. '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 4 a.m. for their personal hygiene before their work.' BYD said in a statement it is collaborating with the investigations from the start and will speak about the case during the course of the probe. It also said it respects Brazil's laws and international labor regulations. In December, a spokesperson for the Chinese automaker objected to reports about poor conditions at the construction site in Brazil, saying the allegations were aimed at 'smearing' China and Chinese brands.
Japan Times
28-05-2025
- Business
- Japan Times
Brazil sues EV giant BYD over ‘slavery' conditions at plant
Brazilian labor prosecutors are suing Chinese electric vehicle maker BYD and two contractors over allegations of slave labor and human trafficking at the construction site of a manufacturing plant. The lawsuit describes "degrading' conditions at facilities in Bahia maintained by BYD, China Jinjiang Construction Brazil and Tonghe Equipamentos Inteligentes do Brasil Co. — currently named Tecmonta Equipamentos Inteligentes Brasil Co. It also alleges irregularities with the visas used to bring the workers into Brazil and the confiscation of their passports. Prosecutors said that in December, 220 Chinese workers were found in conditions "analogous to slavery' and described them as victims of international human trafficking. They filed the lawsuit seeking more than 257 million reais ($46 million) in damages after the companies refused to sign a conduct-adjustment agreement, they said. BYD's Brazilian unit said in a statement that it "reaffirms its non-negotiable commitment to human and labor rights, basing its activities on respect for Brazilian legislation and international labor protection standards.' The company has been collaborating with the labor prosecutor's office and will provide further comment on the lawsuit, it said. The EV plant in Brazil is BYD's first outside of Asia and marked an important step in its push into overseas markets. The country is strategically important for China's carmakers amid the political and economic rapprochement between Chinese President Xi Jinping and Brazilian President Luiz Inacio Lula da Silva as regions such as the U.S. and Europe impose heavy barriers on Chinese-made vehicles. But complaints about conditions began emerging soon after work began in March 2024, with labor union Sindticcc noting safety issues including the site's precarious cafeteria structure during a visit in April last year. The union said it had warned the construction companies about compliance as early as February last year. In November, Brazil's Agencia Publica, an independent news website, published photos, videos and audio showing mistreatment of staff and apparent noncompliance with international labor and safety conventions. The union, in another statement at the beginning of December, reported accidents involving two workers, one of whom had a finger amputated. In late December, a task force from the labor prosecutor's office rescued 163 workers and closed off lodgings and parts of the site until the situation could be fully regularized. The same month, BYD said it had severed ties with Jinjiang Construction Brazil. Despite the controversy, the carmaker said in January that it was still committed to starting production by the end of 2025. The plant is set to have an initial capacity of 150,000 cars per year, which will be doubled to 300,000 units over the following two years. As well as the 257 million reais in collective moral damages, prosecutors are requesting that BYD and the two contractors pay individual damages equivalent to 21 times' each worker's contractual salary. They're also seeking the payment of the contracted wage for each day a worker was subjected to the poor conditions, plus payment of severance that's due. The lawsuit also seeks to have the companies comply with Brazilian labor protection standards and not subject workers to human trafficking and slave labor, according to the prosecutor's statement.
