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Carmaker BYD, which stands for “Build Your Dreams,” is currently facing a lawsuit from the Brazilian government regarding alleged “slave-like” working conditions at a factory building site in Bahia. The lawsuit also names two of BYD’s contractors who were reportedly complicit in the violations of human rights and labor laws.
The investigation into the factory began after an anonymous complaint to the Public Labour Prosecutor’s Office (MPT) in Bahia. The MPT launched an inquiry and subsequently conducted a rescue operation that led to the liberation of 220 Chinese laborers who were reportedly living in deplorable conditions.
The MPT is seeking damages totaling 257 million Brazilian reais, which is equivalent to $45.5 million or £33.7 million. These charges are based on allegations of violations of human rights and labor laws, including illegal employment contracts, exhausting work hours, lack of weekly rest, and the confiscation of passports from the workers.
Reports from the MPT indicate that the laborers were living in overcrowded and unsanitary conditions, with minimal comfort and hygiene standards in place. Some workers reportedly slept on beds without mattresses, and there was only one restroom for the entire crew. The MPT also alleges that the workers were subjected to high fees to terminate their contracts and had a significant portion of their wages withheld.
Under Brazilian law, “slavery-like conditions” are defined as situations where debt bondage and violations of human dignity occur in the workplace. The MPT’s lawsuit aims to hold BYD and its contractors accountable for these alleged violations.
BYD had not responded to requests for comment from the BBC at the time of reporting. However, the company has previously stated a commitment to a “zero tolerance” policy for violations of human rights and labor laws.
The factory in question was being constructed in Camacari, located in the northeastern region of Brazil. The facility was intended to be BYD’s first electric vehicle (EV) factory outside of Asia and was projected to be operational by March 2025. The company has been making significant strides in the electric vehicle industry and recently surpassed Elon Musk’s Tesla in European sales, according to research from Jato Dynamics.
BYD first established a plant in São Paulo in 2015 to produce electric bus chassis, and Brazil has been a key focus for the company’s international expansion efforts. The lawsuit has brought attention to the challenges of maintaining ethical labor practices in global supply chains, particularly in industries like automotive manufacturing where demand for products is high.
Moving forward, it will be essential for BYD and other companies operating in Brazil to ensure that their operations comply with local labor laws and international standards for workplace conditions. The outcome of this lawsuit will likely have far-reaching implications for the reputation of BYD and other multinational corporations in Brazil and beyond.
