BYD Sued For Human Trafficking By Brazil

Brazilian prosecutors have filed a lawsuit against the Chinese electric vehicle giant BYD, as well as its contractors, JinJiang Construction Brazil and Tecmonta Equipamentos Inteligentes. The lawsuit claims that workers at a factory construction site in Camacari, Bahia, have been subjected to human trafficking and forced to work under conditions akin to slavery.

The lawsuit seeks over $45.3 million (approximately 257 million reais) in moral damages, along with individual payments for each affected worker. An investigation in December led to the rescue of 220 Chinese workers from the BYD construction site. Authorities found them living in “extremely degrading” conditions, with a severe lack of basic hygiene and comfort. This included workers sleeping on bed frames without mattresses and, in one instance, 31 people sharing a single bathroom.

Prosecutors allege that workers were brought to Brazil under pretences and held visas that did not match their job roles. Their contracts contained illegal clauses, and they faced “exhausting work hours and no weekly rest.

It is claimed that workers had their passports confiscated, and as much as 70% of their salaries were withheld. High costs were imposed for terminating their contracts, creating a situation of economic dependence. Workers were reportedly monitored by armed guards, further restricting their autonomy and freedom of movement. There were also visible signs of skin damage from working long hours under the sun.

Under Brazilian law, slavery-like conditions encompass not only forced labor but also debt bondage, degrading work environments, and violating of human dignity. Brazil has a robust and employee-protective labor law system, with constitutional rights for workers and the Consolidated Labor Laws (CLT).

Foreign companies operating in Brazil are expected to adhere to these laws and international labor protection standards. The Brazilian Public Labor Prosecutor’s Office (MPT) is responsible for enforcing these regulations.

After the allegations became public, BYD’s Brazilian subsidiary stated that it had terminated its contract with the Jinjiang subsidiary responsible for the work at the site. BYD has also affirmed its commitment to human and labor rights, stating it is cooperating with authorities and will respond to the lawsuit in court. Jinjiang, for its part, has denied the slavery allegations.

The civil suit was filed after the companies reportedly refused to sign a “conduct adjustment agreement” proposed by Brazilian authorities. While a settlement through the courts is still possible, the MPT emphasized that its lawsuit is “very well-founded, with a substantial amount of evidence.” The Chinese workers involved in the case have reportedly returned to China and are expected to receive compensation from payments awarded through the lawsuit.