Brazilian labor prosecutors have filed a public civil lawsuit against Chinese electric vehicle manufacturer BYD and two of its contractors—JinJiang Construction Brazil Ltda and Tecmonta (formerly Tonghe Equipamentos Inteligentes do Brasil Co.)—for alleged labor rights violations, including human trafficking and “slavery-like conditions.”
The legal action stems from a December 2024 incident where 220 Chinese workers were reportedly found in exploitative conditions at the construction site of BYD’s new factory in Camaçari, Bahia. Investigations revealed that these workers were brought to Brazil under false pretenses, with improper visas, and subjected to overcrowded living conditions, inadequate sanitation, and restricted freedom of movement.
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What We Know About BYD Case?
Prosecutors are seeking 257 million reais (approximately $45 million) in moral damages and individual compensation for the affected workers. Additionally, they are calling for a fine of 50,000 reais per labor rules violation, multiplied by the number of impacted individuals.
BYD has stated its cooperation with authorities and commitment to Brazilian and international labor laws. However, the company previously denied the accusations, labeling them as attempts to tarnish the reputation of China and Chinese brands.
This lawsuit poses a significant challenge to BYD’s expansion plans in Brazil, where it has invested heavily in establishing a manufacturing presence. The outcome may influence future foreign investments and labor practices in the region.
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