A recent investigation by Brazilian authorities has uncovered alarming conditions at the construction site of BYD's electric vehicle factory, leading to severe allegations of slave labor.
On Tuesday, prosecutors announced the rescue of 163 Chinese nationals who were found living in what they described as "slavery-like" conditions. These workers were allegedly hired by Jinjiang Construction Brazil, tasked with building BYD's plant located in Camaçari, Bahia, intended to be the company's largest manufacturing facility outside Asia.
Images released by the Labor Prosecutor’s Office revealed shocking living quarters where workers slept on beds without mattresses, shared limited bathroom facilities, and faced daily struggles to access basic sanitation. According to the prosecutors, conditions became intolerable, with only one toilet available for every 31 workers. Many were forced to arise at 4:00 AM to line up for restroom access before their 5:30 AM shifts.
“The conditions found... revealed an alarming picture of precariousness and degradation,” stated the authorities, who characterized these living arrangements as severe violations of human dignity. The construction workers, who were reportedly recruited under false promises, had their passports confiscated, effectively trapping them within BYD's worksite. Jinjiang Construction withheld 60% of their wages, and those wanting to leave were threatened with penalties, including being charged for their initial airfare from China.
BYD, known globally for its electric vehicle production, responded swiftly to the scandal. The company announced it would terminate its contract with Jinjiang Construction Brazil. Alexandre Baldy, Senior Vice President of BYD Brasil, reassured stakeholders by stating, "BYD Auto do Brasil reiterates its commitment to full compliance with Brazilian legislation, especially with regard to the protection of workers’ rights and human dignity.”
Following the conclusion of the investigation, BYD promised to house the affected workers temporarily in nearby hotels, guaranteeing them safe living conditions away from the toxic environment they had endured. The company noted it had been reviewing working conditions at the site prior to the revelations and had been discussing necessary adjustments with contractors.
The investigation’s findings shocked many as they highlighted systemic labor issues within the global supply chains associated with the burgeoning electric vehicle industry. Experts suggest these practices may reflect broader issues concerning labor rights, particularly for immigrant workers.
BYD’s new facility was anticipated to play a significant role in the company’s expansion strategy within South America, following increasing competition from other electric vehicle manufacturers. The plant was set to open by March 2025, yet the recent scandal casts uncertainty over those plans.
Labor conditions globally are under scrutiny as nations push for stricter regulations to dismantle practices resembling modern slavery. Brazil, which defines such labor conditions as involving forced labor, degrading situations, and restricted freedom of movement, is now facing the challenge of ensuring compliance from foreign companies operating within its borders.
Authorities have scheduled formal hearings to address the situation involving BYD and Jinjiang Construction, aiming to create accountability and rectify the described violations. Further reports suggest this incident could potentially slow down BYD's ambitious goals to dominate the electric vehicle market, as the company grapples with reputational damage and the need for more stringent oversight of its contractors.
The revelations have been widely reported and criticized by labor rights advocates, emphasizing the need for changes to prevent the exploitation of vulnerable workers recruited from other nations. Key stakeholders urge both domestic and international entities to re-examine labor practices across all industries to eliminate these heinous conditions.
