Lawsuit claims ‘slavery-like’ conditions at Brazil EV plant
Brazilian prosecutors have launched a lawsuit against electric carmaker BYD and two of its contractors. The suit accuses the companies of human trafficking and forcing workers to endure “slavery-like conditions.” This lawsuit stems from a damning investigation of the construction site of BYD’s new factory in Brazil in December 2024.
The Public Labour Prosecutor’s Office (MPT) filed the lawsuit this week. It is seeking 257 million reais ($45.5 million USD) in damages from BYD and its contractors. The lawsuit follows a months-long investigation that revealed 220 Chinese workers were subjected to degrading conditions, including confiscated passports, illegally structured contracts, and up to 70% of their wages withheld, as reported by the BBC.
Systemic labor violations
The Brazil-based site was once touted as BYD’s flagship electric vehicle hub outside of Asia. It was expected to begin operations by March 2025. Instead, it has become a focal point in the increasing scrutiny over labor abuses in global supply chains—scrutiny that has already plagued BYD due to previous allegations linking the company to Uyghur forced labor in China.
Labor inspectors began probing the construction site in late 2024 after receiving an anonymous tip. Their findings were damning.
According to The Independent,
Prosecutors said the workers were found working in “slavery-live conditions” and with “minimum comfort and hygiene”, calling them victims of international human trafficking.
The investigation revealed that workers lived in cramped, unsanitary conditions. Some sleeping on bare bed frames, with 31 individuals sharing a single toilet. Workers endured excessively long hours under Brazil’s intense sun, without guaranteed rest days or adequate contract protections.
“Many of these workers were trapped in a situation of debt bondage,” said a Bahia labor ministry official. “They were brought here under false promises, stripped of their rights, and made dependent on exploitative arrangements that violate both Brazilian and international labor laws.”