Brazil Sues Chinese Carmaker BYD Over Alleged Slave-Like Labour Conditions
Brazilian authorities have filed a lawsuit against Chinese electric vehicle manufacturer BYD and two of its contractors, accusing them of subjecting workers to conditions akin to modern-day slavery during the construction of a factory in the country’s northeast.
The Public Labour Prosecutor’s Office (MPT) in Bahia State disclosed that 220 Chinese workers were rescued following an anonymous complaint that triggered an investigation. Prosecutors are now seeking R$257 million (approximately $45.5 million or £33.7 million) in damages.
The factory, located in the city of Camaçari, was intended to be BYD’s first electric vehicle plant outside of Asia, with operations scheduled to begin by March 2025. However, construction was suspended late last year after disturbing findings.
According to the MPT, workers were housed in overcrowded accommodations lacking basic hygiene and comfort. Some reportedly slept without mattresses, and up to 31 people shared a single toilet. Authorities also found that the workers’ passports were confiscated and that they were bound by contracts containing illegal provisions, including excessively long work hours and no weekly rest.
Prosecutors allege that some workers had as much as 70% of their salaries withheld and were required to pay exorbitant fees to break their contracts. These conditions fall under Brazil’s legal definition of “slavery-like” labour, which includes debt bondage and practices that violate human dignity.
While BYD has yet to issue a statement regarding the lawsuit, the company has previously maintained a “zero tolerance” policy for human rights abuses and labour violations.
BYD, short for Build Your Dreams, is among the world’s leading electric vehicle producers. The company has been expanding its presence in Brazil since 2015, when it launched an electric bus chassis factory in São Paulo. Brazil remains BYD’s largest international market.
