Brazil shuts China’s EV major BYD factory after workers found living in ‘slave conditions’

Brazilian authorities have suspended the construction of a factory for Chinese electric vehicle (EV) giant BYD, citing reports of workers being subjected to “slave-like” conditions.

The authorities also alleged that the rights violations include a “degrading” environment, withholding passports of workers and unpaid salaries by the contractor responsible for the project.

Brazilian officials found 163 Chinese nationals working in “slavery-like conditions” at a construction site for a factory owned by Chinese electric vehicle producer BYD in Brazil’s Bahia state, the local labour prosecutor’s office said during a news conference on Monday.

BYD announced it had severed ties with the implicated building firm and reiterated its commitment to “full compliance with Brazilian legislation.”

According to the authorities, the workers were hired in China by another firm and brought to Brazil irregularly. They were labouring for long hours, more than what is allowed by Brazilian law, sometimes for seven days a week straight, while being kept in what authorities described as degrading conditions in their accommodations, among other labour violations.

In Brazil, “slavery-like conditions” include forced labor, but also cover debt bondage, degrading work conditions, long hours that pose a risk to workers’ health and any work that violates human dignity.

The workers had to request permission to leave their lodgings, and at least 107 also had their passports withheld by their employer, said labor inspector Liane Durao, adding that conditions at the work site were dangerous.

China has long faced international criticism for its record on human rights, with recurring reports highlighting poor working conditions and widespread abuses. Over the years, news has emerged about the treatment of vulnerable groups, including ethnic minorities and workers in various industries in the country.

Recently, German carmaker Volkswagen AG has finally bowed to pressure from investors and announced to exit China’s Xinjiang region, which has been in the news for the wrong reasons over the years.

Volkswagen will now end its activities in Xinjiang as investors are worried about the future of the sites that the company had acquired earlier amid sustained campaigns by human rights groups flagging human-rights abuses in the western Chinese region.

With inputs from agencies.