Brazil’s Public Labour Prosecutor’s Office (MPT) in Bahia has launched a significant legal case against Chinese electric vehicle manufacturer BYD, accusing the company and its partners of subjecting workers to “slave-like” conditions at a construction site in northeastern Brazil. The MPT’s investigation, sparked by an anonymous complaint, led to the rescue of 220 Chinese workers living in dire conditions at the plant under construction in Camacari.
According to the MPT, workers were found in cramped, unsanitary accommodations with minimal comfort and hygiene. Reports revealed some workers slept on beds without mattresses, while a single toilet was shared by 31 individuals. Furthermore, it was alleged that construction staff had their passports confiscated, were bound by employment contracts containing illegal clauses, and endured exhausting work hours without proper weekly rest.
The prosecutors also highlighted severe financial exploitation, with up to 70% of workers’ salaries withheld and excessive fees charged for contract termination. These conditions, the MPT argues, violate Brazilian laws defining “slave-like” labor to include debt bondage and work that undermines human dignity.
As a result of these findings, authorities halted the factory’s construction late last year. The MPT is now seeking 257 million Brazilian reais (approximately $45.5 million) in damages from BYD and its affiliated companies.
This factory was poised to be BYD’s first electric vehicle plant outside Asia, with plans to begin operations in March 2025. BYD, an acronym for Build Your Dreams, is one of the world’s largest EV manufacturers and recently outsold Tesla in Europe for the first time. The company has been expanding its footprint in Brazil, its largest overseas market, having operated a factory producing electric bus chassis in São Paulo since 2015.
BYD has not responded directly to the BBC’s request for comment on the lawsuit but has previously stated it maintains a “zero tolerance for violations of human rights and labour laws.” This legal battle could affect BYD’s expansion strategy and reputation as it seeks to grow in the global electric vehicle market.
