- Chinese automaker BYD is building a new manufacturing facility in Bahia, Brazil.
- Authorities discovered 163 workers on the project living in inhumane “slave-like conditions.”
- BYD is now severing ties with the Chinese construction company responsible for the abuse.
Chinese automaker BYD has been aggressively expanding its global footprint, with Brazil being a key part of its growth strategy. However, that momentum screeched to a standstill on Monday when Brazilian authorities halted construction on a new manufacturing plant, throwing the company’s plans into uncertainty.
According to government officials, the construction company responsible for the project, called Jinjiang Construction, treated its 163 workers like modern-day slaves. These workers, reportedly hired in China by a separate firm, were allegedly brought to Brazil through irregular—and highly questionable—means. To make matters worse, over 100 of them had their passports withheld, effectively trapping them in exploitative conditions.
The conditions we’re talking about here are truly brutal. The workers lived on the construction site. The accommodations offered by the company included beds without mattresses and, in one case, one bathroom for 31 workers. As such, an official report from the government says workers would often all wake up around 4 a.m. so that everyone could have access to the restroom before beginning work at 5:30 a.m.
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“In one of the rooms, occupied by a cook, pots with prepared food were found left open on the floor, exposed to dirt and without refrigeration, to be served the following day,” says the Public Labor prosecutor’s office.As if that weren’t bad enough, the construction company, Jinjiang Construction Brazil LTD., based in Sichuan, China, evidently made life harder when it came to pay and job freedom.
“The workers were required to pay a deposit, had 60% of their wages withheld (receiving only 40% in Chinese currency), faced excessive costs for terminating their contracts, and had their passports withheld by the company,” authorities added.
These conditions were bad enough that Jinjiang Brazil LTD is now prohibited from continuing its operations. While the workers will remain in the same accommodations for the time being, they are no longer allowed to work for Jinjiang. Authorities are scheduled to meet with BYD and Jinjiang on the 26th to determine the next steps.
Alexandre Baldy, Senior Vice President of BYD Brasil, stated, “BYD Auto do Brasil reiterates its commitment to full compliance with Brazilian legislation, especially with regard to the protection of workers’ rights and human dignity.”
BYD, short for Build Your Dreams, is already the top-selling EV car brand in the country and the new facility was supposed to come online next year. However, it’s now unclear how this controversy will impact the company’s plans moving forward.
