Summary
- BYD factory in Brazil involved in "slavery" conditions, potentially human trafficking
- More than 160 workers rescued in Bahia state, construction halted
- BYD terminated subcontractor Jinjiang Construction Brazil
- Workers forced to live in degrading conditions, passports and salaries withheld
- BYD claims zero tolerance for human rights violations, investigation ongoing with proactive measures taken to safeguard workers’ rights
Article
Reports emerged recently of workers at a BYD factory in Brazil being subjected to “slavery” conditions and potentially victims of human trafficking. Brazilian authorities halted the construction of the factory, rescuing over 160 workers in the northeastern state of Bahia. Workers were found in degrading conditions, with their passports and salaries withheld. BYD terminated its subcontractor, Jinjiang Construction Brazil, in response to the allegations.
The workers, now moved to hotels, were living in substandard conditions with 31 workers sharing a bathroom and sleeping on beds without mattresses. The situation was deemed to be akin to slavery, as workers faced debt bondage, wage withholding, and excessive costs for terminating contracts. Brazilian labor authorities confirmed that Chinese workers at the construction site were victims of human trafficking, leading to a growing controversy for BYD in its largest overseas market.
BYD released a statement expressing zero tolerance for human rights and labor law violations, terminating the subcontractor and offering support to the affected workers. The company claims to uphold the highest standards of integrity in its operations and supply chain. However, there are indications that BYD was aware of the situation and had requested improvements in the workers’ living and working conditions, raising questions about its response to the issue.
Concerns have been raised about the extent of BYD’s knowledge and efforts to address the situation, as reports suggest a detailed review of conditions and requests for improvements were made to the subcontractor. The case has garnered attention on Chinese social media, with comparisons made to construction sites in China. Brazilian authorities have stopped issuing temporary work visas to BYD as investigations continue into the allegations.
Brazil is a significant market for BYD, accounting for almost 20% of its sales outside of China. The company has been dominating EV sales in the country and recently launched the BYD Shark pickup truck there. However, a proposed “sin tax” on electric vehicles in Brazil has added complexity to the EV market. BYD has expressed concerns about a negative agenda against them in Brazil, but detailed reports of poor living conditions and legal actions suggest otherwise.
As the investigation unfolds, the outcome remains uncertain. The situation has raised questions about labor practices and ethical standards within BYD’s operations. The company’s response and actions moving forward will be closely monitored to ensure accountability and transparency. Stay tuned for updates on this developing story and its implications for the cleantech industry.
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