BYD is facing a lawsuit in Brazil regarding allegations of slavery-like conditions at its EV plant
The Public Labour Prosecutor’s Office (MPT) has filed a civil lawsuit against BYD and two of its subcontractors related to the construction of BYD’s new electric-vehicle plant in Camacari, Brazil. A total of 220 Chinese workers were discovered living and working in conditions that violated Brazilian labor laws, including conditions that were “analogous to slavery”, prosecutors said.
The investigations were launched following an anonymous tip which led to the discovery of overcrowded living quarters, unsanitary housing conditions and exploitative work conditions. According to official reports, some workers slept without mattresses, their passports were reportedly confiscated, and the contracts contained illegal clauses. Observers reported that workers worked long hours without a day off in a week, and that 60 to 70 percent of their wages were withheld.
The MPT is seeking R$257 million (approx. US$51.5 million) in compensation from the companies. Work on the Camacari plant was suspended in late 2023 in light of the revelations. BYD, which has claimed “zero tolerance for violations of human rights and labour laws”, had not responded to the group’s lawsuit at the time of writing.
The plant was to be BYD’s first site for producing EVs outside of Asia and a cornerstone in its expansion into Latin America. The company's global image and expansion strategy face a severe blow from the lawsuit. The timing is interesting, as the company is competing head-to-head with Tesla and other EV makers for market share globally, including recently overtaking Tesla in European EV sales this year.
Brazilian law considers “slavery-like conditions” to be not only forced labor but also debt servitude, debasing living conditions, and violations of human dignity. The legal fight currently unfolding could give BYD reason to reconsider its operations in the region and draw international attention to its labor practices overseas.
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