163 Workers Rescued from Exploitative Slave-Like Conditions at BYD Construction Site in Brazil

Authorities reported that workers slept on bare bed frames, consumed contaminated food, and shared a single bathroom among 31 people

Chinese automaker BYD, which has been rapidly expanding its global presence, faced a major setback on Monday when Brazilian authorities halted construction of a new manufacturing plant. This unexpected move has cast uncertainty over BYD’s ambitious growth plans in Brazil, a key market in its global strategy.

The suspension came after government officials uncovered severe labor violations by Jinjiang Construction, the contractor overseeing the project. According to reports, 163 workers—many recruited in China by a third party—were subjected to exploitative conditions. Over 100 of these workers had their passports confiscated, effectively preventing them from leaving, while many were brought to Brazil through questionable, irregular means.

The working and living conditions were described as appalling. Workers were housed on-site in accommodations that lacked basic necessities. Beds were provided without mattresses, and in one instance, a single bathroom was shared by 31 individuals. Government reports revealed that workers had to wake up as early as 4 a.m. to take turns using the restroom before starting their shifts at 5:30 a.m.

Further inspections uncovered additional mistreatment. A cook’s living quarters contained pots of prepared food left uncovered on the floor, exposed to dirt and without refrigeration, to be served the next day, according to the Public Labor Prosecutor’s Office.

The financial exploitation was equally troubling. Workers were required to pay a deposit before starting their jobs, had 60% of their wages withheld (receiving only 40% in Chinese currency), faced exorbitant costs for terminating their contracts, and had their passports withheld by the company.

Jinjiang Construction Brazil Ltd., a Sichuan-based firm, is now under scrutiny for these violations, which have brought BYD’s expansion efforts to a halt and sparked broader concerns about labor practices within global supply chains.

Due to these severe conditions, Jinjiang Brazil LTD has been barred from continuing its operations. While the workers will remain in their current accommodations for now, they are no longer permitted to work for Jinjiang. Authorities are set to meet with BYD and Jinjiang on the 26th to discuss 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, particularly in protecting workers’ rights and human dignity.”

BYD, which stands for Build Your Dreams, is already the leading EV brand in Brazil, and the new facility was expected to start operations next year. However, it is now uncertain how this controversy will affect the company’s future plans.

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