The Brazilian labor prosecution has filed a lawsuit against Chinese electric vehicle giant BYD, accusing the company of human trafficking during the construction of a local plant and providing workers with conditions "resembling slavery." They demand that the company take legal responsibility for these actions.
According to Al Jazeera reports, the Brazilian Labor Prosecutor's Office issued a statement on the 27th pointing out that the lawsuit targets BYD and its two contractors: China's Jinjian Group and Tecmonta company.
The Brazilian prosecutors are demanding that the three companies jointly pay 257 million reais (192 million Malaysian ringgit) as moral damage compensation and distribute individual compensation to each Chinese worker.
In addition, the prosecution demands the court order the three companies to fully comply with Brazilian labor laws and impose a fine of 50,000 reais (37,400 Malaysian ringgit) for each violation, with the amount accumulating based on the number of affected workers.
BYD responded by stating that the company is committed to respecting and safeguarding human rights and strictly adheres to Brazilian and international labor laws. The company is actively cooperating with the prosecution's investigation and will respond in subsequent legal proceedings.
● Workers Laboring Under "Conditions Resembling Slavery"
The case originated from an investigation launched by the Bahia State Labor Prosecutor's Office in December last year. The investigation revealed that 220 Chinese workers employed by BYD's contractors were living and working under "conditions resembling slavery" and were identified as victims of international human trafficking.
Among these 220 Chinese workers, 163 were employed by Jinjian Company and another 57 by Tecmonta Company.
The indictment states that these workers entered the country with visas that did not match their actual job positions and were subsequently forced to work on construction sites, with their lives almost completely controlled by the employer. Employers not only withheld up to 70% of wages but also imposed hefty penalties for contract breaches, with some workers even having their passports confiscated, further restricting their freedom of movement.
The indictment also revealed the poor living conditions: some beds were without mattresses, and one dormitory only had one toilet for 31 people to share, "forcing workers to get up at 4 AM daily to queue for washing up."
Deputy Labor Prosecutor Leal said in an interview that the affected workers have now returned to China. If the court rules in favor of compensation, the payment will be disbursed by Chinese parties, and the relevant companies must submit payment proofs. Although the case has entered the judicial process, a resolution might still be reached through the courts.
He emphasized, "We have substantial evidence for our lawsuit, having collected extensive materials during our investigation."
Leal also revealed that the prosecution attempted negotiations with the three companies at the end of December last year but ultimately failed to reach an agreement. He did not specify the reasons for the breakdown in negotiations.
Due to the labor rights dispute, BYD has postponed the scheduled start of production at its Brazilian factory. Currently, BYD anticipates that the new factory will be fully operational by December 2026.