Chinese EV giant BYD has halted construction at its new electric vehicle plant in Brazil after authorities discovered Chinese workers living in "slavery-like" conditions.
The Public Ministry of Labor (MPT) reported that 163 workers at the construction site in Salvador, Brazil, were subjected to appalling living and working conditions. The workers, hired in China by BYD's contractor Jinjiang Group, endured overcrowded housing, unsanitary facilities, and exploitative employment terms.
According to the MPT, workers had one bathroom for every 31 people, forcing them to wake up at 4 am to get ready for work at 5:30 am. They slept without mattresses and the kitchens were in "alarming conditions." Workers who quit after six months would leave the country without any pay after factoring in the cost of a round-trip airplane ticket.
BYD has since cut ties with Jinjiang and is assisting the victims while working with Brazilian authorities. All workers will be transferred to hotels, their contracts terminated, and they will not be able to work.
Alexandre Baldy, senior vice president of BYD Brazil, stated the company remains "committed to full compliance with Brazilian legislation, especially with regard to the protection of workers' rights and human dignity."
BYD claims it conducted a "detailed review" over the past few weeks and repeatedly asked Jinjiang to improve the conditions.
A joint virtual hearing of the MPT and MTE is scheduled for December 26. The MPT said the need for new "on-site inspections" has not been ruled out. BYD's new EV plant is set to begin production next year.
This incident casts a shadow over BYD's rapid expansion in Brazil, where it has become a top-selling EV brand with models like the Dolphin Mini (Seagull), Yuan Plus, and Dolphin. In October, BYD launched its first pickup, the Shark PHEV, in Brazil. #BinanceSquareFamily