Brazilian authorities recently rescued 163 Chinese workers from a construction site for a new electric vehicle (EV) factory owned by BYD, a prominent Chinese automaker, in Bahia state. The workers were found to be living and working under "slave-like conditions," which included excessive working hours, poor living accommodations, and the confiscation of their passports.

The workers reportedly laboured long hours, often seven days a week, starting their shifts at 5:30 AM after waking up at 4 AM. Reports indicated that they were subjected to dangerous working environments that lacked basic safety measures.

 Inspections revealed alarming deficiencies in the accommodations provided to the workers. Many beds lacked mattresses, and there was only one toilet for every 31 workers. These conditions were deemed degrading and violated Brazilian labour laws designed to protect human dignity.

The workers were allegedly brought to Brazil irregularly by a contractor, Jinjiang Construction Brazil Ltd., which has since been severed by BYD. The Brazilian Ministry of Public Labour (MPT) described the situation as involving forced labour and debt bondage.

BYD's Response

In light of these findings, BYD has committed to ensuring compliance with Brazilian labour laws and safeguarding workers' rights. The company has moved the affected workers to hotels and stated that it would conduct a comprehensive review of working conditions for all subcontracted employees. Alexandre Baldy, senior vice president of BYD Brasil, emphasised the company's dedication to human dignity and worker rights in their operations.

This incident poses significant reputational risks for BYD as it seeks to expand its presence in the South American market, particularly in Brazil, which is a key area for its EV strategy. The company had planned to commence operations at this factory by 2025, but the current situation raises serious concerns about labour practices within its supply chain and could affect future business prospects in the region.

ANI