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Business

Brazil closes BYD factory over 'slavery-like conditions'

By Asia Tech Times
Last updated: 21/05/2025
6 Min Read
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Brazilian authorities said on Monday they had halted construction work at a Chinese electric car maker BYD factory after workers were found to be living in “slave-like conditions.”

Brazilian Ministry of Public Labor (MPT) said in a statement BYD rescued 163 Chinese workers at a construction site in Kamakali City. The factory will become BYD’s first electric vehicle factory outside Asia.

A series of inspections since November “revealed alarming scenes of instability and degradation,” the report said.

AF also reports: Toyota will build a factory in China to produce luxury electric vehicles

“We found… that the work of these 163 workers was carried out in conditions similar to slavery,” labor inspector Liane Durao said at a news conference on Monday.

The living conditions of Chinese workers at the construction site of BYD's proposed factory in Brazil
The living conditions of Chinese workers at the construction site of BYD’s proposed factory in Brazil. Photo: Ministério Público do Trabalho

The MPT noted that in one accommodation, workers slept on beds without mattresses and there was only one bathroom for 31 people. This living arrangement forces workers to wake up at 4 a.m., line up to use the toilet, and prepare to leave for work at 5:30 a.m.

Authorities said conditions were similar at other residences and all had “serious infrastructure and sanitation issues.”

In addition to a lack of space, the bathrooms were not segregated by gender, did not have enough toilet seats and were in poor sanitary conditions, they said.

Workers on site were also forced to store food in the open, often near building materials and even unsanitary bathrooms, authorities said.

“Forced labor” concerns

At the same time, on-site workers also face problems such as long working hours and lack of sleep due to poor living conditions, leading to many work-related injuries.

The living conditions of Chinese workers at the construction site of BYD's proposed factory in Brazil
Photo: Ministério Público do Trabalho

The contract stipulated that each worker should work at least 10 hours a day. Authorities noted that one accident victim at the scene had been on the job for 25 consecutive days.

Officials also said the workers’ situation was one of forced labor because they had to pay deposits, had 60% of their wages withheld, faced exorbitant fees for terminating their contracts and had their passports withheld by the company.

“If a worker attempts to terminate his employment contract after six months, he will leave the country without actually receiving any payment for his work,” the MPT said in a statement.

“In effect, the deposit, discount on air tickets to Brazil and return air tickets will constitute a total forfeiture of payments received by the worker throughout the period of employment.”

BYD understands workers’ situation

According to authorities, the workers were hired in China by another company and were brought to Brazil on an irregular basis.

There are sufficient food storage and preparation conditions at the construction site of BYD's proposed Brazilian factory
On-site food storage and preparation conditions at BYD’s proposed Brazilian factory are insufficient. Photo: Ministério Público do Trabalho.

Most of them have now been moved to hotels and will have their employment contracts terminated, they said.

Authorities also vowed to continue checking the scene. They said construction at the site would not restart until worker accommodation was brought into compliance.

BYD needs to come up with measures to guarantee minimum accommodation conditions and address irregularities found during inspections by Thursday, they said.

According to the British Broadcasting CorporationThe Chinese automaker said in a statement that it had severed ties with the construction company that employed the workers. It said it remained committed to “full compliance with Brazilian legislation”.

The company said it had previously reviewed the worker’s working conditions and asked the construction company “multiple times” to make improvements.

Also read:

China’s BYD sales increase, sales may exceed Ford, Honda

BYD shares soar after acquiring Tesla, sales surge in October

As exports explode, Brazil is now China’s top destination for electric vehicles

China’s BYD plans to enter Canadian electric vehicle market

China’s BYD in talks to export Mexican factory

BYD Thailand dealers will open three more electric vehicle sales points amid sales boom

Minister: Welcome China’s BYD to open electric vehicle factory in France

China’s BYD opens first electric vehicle factory in Southeast Asia

BYD sales surge in Southeast Asia while Tesla growth slows

China’s largest electric car maker BYD aims for massive expansion in Vietnam

Visakha Saxena

Vishakha Saxena is Asia Finance’s multimedia and social media editor. She has worked as a digital journalist since 2013 and is an experienced writer and multimedia producer. As a trader and investor, she is interested in the new economy, emerging markets, and the intersection of finance and society. You can write to her: [email protected]

Contents
AF also reports: Toyota will build a factory in China to produce luxury electric vehicles“Forced labor” concernsBYD understands workers’ situationAlso read:China’s BYD sales increase, sales may exceed Ford, HondaBYD shares soar after acquiring Tesla, sales surge in OctoberAs exports explode, Brazil is now China’s top destination for electric vehiclesChina’s BYD plans to enter Canadian electric vehicle marketChina’s BYD in talks to export Mexican factoryBYD Thailand dealers will open three more electric vehicle sales points amid sales boomMinister: Welcome China’s BYD to open electric vehicle factory in FranceChina’s BYD opens first electric vehicle factory in Southeast AsiaBYD sales surge in Southeast Asia while Tesla growth slowsChina’s largest electric car maker BYD aims for massive expansion in VietnamVisakha SaxenaLeave a Comment
TAGGED:39slaverylikeBrazilBYDclosesconditions39factory

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