Brazil Shuts BYD Factory Site Over Allegations of Slave Labor Conditions

Brazil has shut down a BYD factory due to serious allegations of slave labor conditions affecting workers. Prosecutors report alarming living conditions, prompting the Ministry of Public Labor to characterize the situation as forced labor. BYD, a leading electric vehicle maker, has moved affected workers to hotels while asserting their commitment to improving conditions through ongoing reviews.

Brazil has officially closed a BYD factory site due to allegations of slave labor conditions experienced by workers hired through Jinjiang Construction Brazil. Intended to be operational by March 2025, this factory was set to be BYD’s first electric vehicle (EV) plant outside of Asia. Reports from prosecutors disclose shocking living conditions for workers, including inadequate sleeping arrangements with mattresses missing and sharing facilities among a large number of employees. The Brazilian Ministry of Public Labor (MPT) characterized these conditions as “slave-like,” noting that many workers faced withheld wages and incurred significant costs if they wished to terminate their contracts. In response, BYD has relocated the affected workers to hotels and claimed to have conducted prior reviews of their living and working conditions, consistently urging improvements from the construction firm.

BYD, known as Build Your Dreams, is a prominent EV manufacturer globally, surpassing competition from Tesla in sales during the last quarter of 2023. The company has been striving to strengthen its presence in Brazil, which serves as its largest international market. In 2015, BYD established its first factory in São Paulo and announced significant investments in the nation, particularly a planned investment of 3 billion reais to construct a dedicated EV manufacturing facility. However, the advancement of BYD’s operations is now overshadowed by serious allegations regarding labor violations that threaten its reputation and business prospects abroad.

In summary, the closure of the BYD factory site in Brazil underscores the severe risks associated with labor practices, particularly concerning worker rights and conditions. The MPT’s intervention highlights the importance of enforcing labor laws to prevent exploitation, especially in a large corporation poised for expansion in international markets. As BYD faces scrutiny and consequences for its operations, the company’s commitment to rectify these issues may serve as a critical test of its ethical standards and business resilience.

Original Source: www.bbc.com