BYD's Labor Practices Under Scrutiny Following Rescues of Chinese Workers
A task force's findings have raised serious concerns over labor practices at BYD, the Chinese electric car manufacturer, following the rescue of 163 workers under deplorable conditions.
Brazil's recent investigation uncovered alarming details about the working and living conditions of 163 Chinese workers at BYD's construction site for its electric car factory located in Camaçari, Bahia. These runaway reports highlight conditions described as akin to slavery.
The public prosecutor's office, alongside law enforcement, intervened, leading to the rescue of these workers, who were reportedly subjected to extremely long hours with no guaranteed time off. The investigation revealed horrendous living quarters devoid of basic sanitation and hygiene facilities. Overcrowding was rampant, with reports indicating one bathroom for every 31 workers. Auditors discovered such dire conditions forced the workers to rise as early as 4:00 AM to start their labor by 5:30 AM.
"This means neither mattresses nor privacy guarantees for workers," stated one source close to the investigation, emphasizing the degrading nature of their environment.
According to the task force’s report, the situation took several tragic turns, with four incidents of amputations of limbs and loss of movement recorded, prompting urgent scrutiny of BYD’s operations. The dire circumstances led to questions around corporate governance and oversight concerning health and safety protocols.
Among those rescued were skilled workers such as welders, builders, and loaders, all aligned under Jinjiang Construction Brazil Ltda.—the contracted company responsible for part of the factory's setup. The local authorities disclosed unsettling practices, including salary deductions which deprived workers of 60% of their wages, confiscation of passports, and punishment tactics to prevent potential resignations.
Jinjiang Construction has been under fire for these practices, branded by the authorities as forced labor. The Brazilian Public Ministry of Labor has confirmed the horrific conditions necessitated their intervention. "We noticed serious irregularities, which propelled immediate action," reported one federal authority involved.
Responding to the revelations, Alexandre Baldy, Senior Vice President of BYD Brazil, stated, “BYD Auto do Brasil reiterates its commitment to fully comply with Brazilian legislation, especially with regard to the protection of workers’ rights." Following the findings, BYD declared it would terminate its relationship with Jinjiang Construction, emphasizing its dedication to appropriate labor conditions.
"All rights of the affected subcontracted employees will continue to be safeguarded,” Baldy clarified. He also assured the public and stakeholders of BYD’s efforts to transfer the rescued workers to hotels at the company’s expense, aiming to provide immediate relief and safety.
This situation unfolded after the company's significant announcement earlier this year of plans to invest 3 billion reais (approximately 466 million euros) and generate up to 150,000 vehicles annually at the Camaçari factory. The initial discussions began when Tayler Li, CEO of BYD Brazil, met with Brazilian President Luiz Lula da Silva, showcasing ambitious visions for the manufacturing project.
With these harrowing revelations out, BYD is now facing mounting pressure to address not only the immediate situation but also the broader implications for its labor policies and practices across its global operations. The need for stringent oversight and genuine commitment to worker welfare is now undeniably at the forefront of this discussion.
It remains to be seen how BYD, renowned for its role as one of the largest electric vehicle manufacturers, will rectify these glaring issues and restore trust among stakeholders and the workforce. Corporate accountability now stands as the cornerstone to ensuring the rights and dignity of every worker within the supply chain.
