Electric vehicle manufacturer, BYD, has been accused of bringing hundreds of Chinese workers to Brazil on irregular visas to construct a factory, according to a labor inspector who spoke to Reuters. The company has since promised to adhere to local labor laws for its remaining workforce.
Brazilian authorities reportedly discovered 163 of these workers, employed by BYD’s contractor, Jinjiang, in what they referred to as “conditions akin to slavery” last month. Liane Durao, who led the investigation, said these 163 workers, who were rescued by labor authorities, are in the process of leaving Brazil or have already left.
Durao explained that BYD will face fines for each worker found in this situation but didn’t disclose the total sum. The company has agreed to amend the working conditions of the hundreds of workers who will stay in Brazil, to align with the country’s labor laws. She estimates that about 500 Chinese workers were brought to work at the Brazilian factory.
BYD and Jinjiang have yet to respond to requests for comments. However, BYD has previously stated that it has severed ties with Jinjiang, who disputes the charges from Brazilian authorities. An insider at BYD told Reuters that the company believes all visas were properly issued and workers came voluntarily to work in Brazil.
The factory has become emblematic of China’s growing influence in Brazil and could be seen as an expression of the enhanced relationship between the two countries. Chinese government spokesperson, Guo Jiakun, stated that Chinese-funded enterprises are always required to comply with laws and regulations.
The future of the factory, a crucial part of BYD’s global expansion, remains uncertain due to this investigation. The company invested $620 million to establish this factory complex in Bahia and intended to produce 150,000 cars initially. The labor prosecutor’s office has described the workers as victims of human trafficking, with allegations of Jinjiang Group withholding the passports of 107 workers.
This probe could impact BYD’s global expansion plans. Liane Durao assured that labor inspectors will continue to oversee BYD’s construction site to ensure the remaining workers are not subjected to abusive conditions.
