Brazilian prosecutors have filed a civil lawsuit against Chinese electric vehicle manufacturer BYD and two of its contractors, accusing the companies of subjecting hundreds of Chinese workers to slave-like labor conditions and engaging in international human trafficking. The suit, announced Tuesday by labor prosecutors in Bahia state, seeks 257 million reais ($50 million) in damages, plus additional fines for alleged labor law violations.
The case stems from a 2023 investigation that uncovered 220 Chinese workers living in squalid conditions while constructing BYD's new factory in Camaçari, a key industrial site for the EV maker in Brazil-its largest overseas market. The labor prosecutors said in a statement, "Working conditions were extremely degrading. Five settlements were kept by BYD, JinJiang and Tecmonta. Some workers slept on beds without mattresses and had their personal belongings alongside with their food."
Prosecutors said workers were brought to Brazil under false pretenses, with visas that did not match the nature of their employment. In one camp, there was a single toilet shared among 31 individuals, forcing workers to wake as early as 4 a.m. to complete basic hygiene tasks before their workday began. The suit targets BYD, China JinJiang Construction Brazil, and Tecmonta Equipamentos Inteligentes.
Deputy Labor Prosecutor Fabio Leal stated that the three companies had been in negotiations with authorities since late December, but talks broke down without resolution. "Our lawsuit is very well-founded, with a substantial amount of evidence provided during the investigation process," Leal said in an interview. He added that although all the workers have since returned to China, any court-ordered compensation would be distributed to them abroad, with BYD and its contractors responsible for providing proof of payment.
In addition to the $50 million in moral damages, prosecutors are demanding 50,000 reais in fines for each breach of Brazilian labor laws, multiplied by the number of affected workers. They are also seeking mandatory compliance with various labor rules to prevent future violations.
BYD responded to the accusations by stating that it "respects Brazil's laws and international labor regulations" and has been cooperating with the investigation since its inception. The company said it would address the case in court. A December 2023 spokesperson for the automaker previously dismissed the allegations, claiming they were aimed at "smearing" Chinese companies.
