Brazilian labour prosecutors have filed a lawsuit against Chinese electric vehicle giant BYD and two of its contractors over alleged human trafficking and “slave-like” working conditions at a factory construction site in Bahia state.
According to the Public Labour Prosecutor’s Office (MPT), 220 Chinese workers were rescued following an investigation prompted by an anonymous tip-off. The prosecutors are demanding 257 million Brazilian reais (approximately $45.5 million) in damages from the three companies involved.
The factory, located in the city of Camacari in northeast Brazil, was slated to be BYD’s first electric vehicle plant outside Asia and was expected to begin operations by March 2025. Construction was halted late last year after authorities discovered serious labour violations.
In a statement, the MPT described appalling conditions at the site, where workers lived in overcrowded housing with poor hygiene and minimal comfort. Investigators reported that one toilet was shared by 31 people, and some workers were forced to sleep on beds without mattresses.
Further allegations include the confiscation of workers’ passports, employment contracts with illegal clauses, excessive work hours with no rest days, and salary withholdings of up to 70 percent. Workers were also reportedly subjected to high financial penalties if they attempted to terminate their contracts.
Under Brazilian law, “conditions analogous to slavery” encompass practices such as debt bondage, degrading treatment, and denial of basic rights that undermine human dignity.
While BYD has not responded to recent media requests for comment, the company has previously stated it maintains “zero tolerance for violations of human rights and labour laws.”
The Camacari plant is part of BYD’s strategic expansion into Brazil, the company’s largest overseas market. The automaker, whose name stands for “Build Your Dreams,” has significantly grown its global footprint, even surpassing Tesla in European EV sales in April, according to Jato Dynamics.
BYD first entered the Brazilian market in 2015 with a factory in São Paulo producing electric bus chassis. The lawsuit now casts a shadow over its ambitious expansion plans in the country.
Brazilian authorities have signaled a broader crackdown on labor abuses in major infrastructure and industrial projects, warning that foreign investment must not come at the expense of fundamental human rights.
Written By Rodney Mbua
