Brazilian Labor Prosecutors Sue Chinese Carmaker BYD Over ‘Slave Labor’ Conditions
Udumbara
Labor prosecutors in Brazil have filed a lawsuit against Chinese auto manufacturer BYD, accusing it of human trafficking and allowing workers building a factory to live in conditions tantamount to slave labor.
The lawsuit seeks 257 million reais ($45 million) in damages from BYD and the two construction contractors.
The lawsuit also seeks to enforce compliance with Brazilian labor laws by BYD and the construction companies and orders them not to “subject workers to human trafficking and slave labor.”
The MPT is a legal body independent of Brazil’s government that enforces labor laws.
On Tuesday, the MPT said, “220 Chinese foreign workers were found in a situation analogous to trafficking.”
Factory to Open in December 2026
Earlier this month, Bahia state’s labor secretary, Augusto Vasconcelos, said in a video that the factory will be “fully functional” by December 2026.On Tuesday, the MPT prosecutors said the 220 workers found at the Camacari construction site had entered Brazil “illegally, with work visas for specialized services that did not correspond to the activities actually performed on the project.”
“In the construction works at the BYD industrial plant, public agents found workers packed into accommodation, with minimal conditions of comfort and hygiene, with armed surveillance, retention of passports, employment contracts with illegal clauses, long hours and no weekly rest,” The MPT said.
It said there was a risk of accidents due to alleged negligence surrounding health and safety regulations.
The MPT said it began investigating the conditions of construction workers at the BYD plant after receiving an anonymous complaint in October 2024.
The statement went on to say that on Dec. 23, 2024, a task force comprising the MPT, the Federal Police, the Federal Public Ministry, and the Public Defender’s Union discovered 163 Chinese workers employed by Jinjiang at the construction site.
It said 57 workers, employed by Tonghe, were later found in “situations analogous to extortion and victims of human trafficking.”
The MPT lawsuit seeks payment of individual “moral damages equivalent to 21 times the contractual salary” for each worker, and a fine of 50,000 reais ($8,863) multiplied by the number of workers harmed.
BYD told The Epoch Times in an emailed statement: “BYD reaffirms its unwavering commitment to human and labor rights, conducting its activities in full compliance with Brazilian legislation and international labor protection standards.
Prosecutor Says Negotiations Failed
A deputy labor prosecutor, Fabio Leal, said that negotiations with the three companies began in late December but had failed to reach an agreement.Leal said the workers were brought to Brazil illegally from China and were promised satisfactory working conditions.
He said all of the Chinese workers had returned to China and that they would receive compensation if the lawsuit were successful, with the companies in Brazil being responsible for providing proof of payment.
Leal said a settlement is still possible, but would need to be agreed upon by the court.
“Our lawsuit is very well-founded, with substantial evidence provided during the investigation process,” he said.
Brazil is the world’s sixth biggest auto market, and BYD is seeking to cash in on the boom in sales of electric vehicles (EVs).
Seven out of 10 EVs sold in Brazil are made by BYD, which also leads the hybrid auto market.
But the company is keen to produce cars in Brazil, rather than import them from China.
In 2023, another Chinese company, GWM (Great Wall Motors), announced plans to convert a derelict Mercedes-Benz plant to build EVs in the state of Sao Paulo.
