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Workers Rescued from Degrading Conditions

Brazilian authorities have halted the construction of a BYD factory, citing slavery-like conditions. Over 160 workers were rescued in Bahia, according to the Public Labour Prosecutor’s Office (MPT). These workers reportedly lived in degrading conditions, with passports and salaries withheld by Jinjiang Construction Brazil.

Workers were housed in four facilities in Camaçari city. In one facility, beds lacked mattresses, and 31 workers shared a single bathroom. Prosecutors described the living conditions as “alarming” and “degrading.” Workers had to wake up extremely early due to limited access to basic facilities.

Brazilian law defines slavery-like conditions as those involving debt bondage and work that undermines human dignity. The MPT emphasized that withholding wages and imposing high contract termination costs constitute forced labor.

BYD stated it had severed ties with the involved construction firm. The company moved affected workers to hotels and conducted a detailed review of subcontracted workers’ conditions. BYD claimed it repeatedly urged the firm to improve conditions.

BYD’s Global Expansion and Challenges

BYD, short for Build Your Dreams, is a global leader in electric vehicle (EV) manufacturing. It sold more EVs than Tesla in late 2023, competing for dominance in the sector. The halted factory was scheduled to open in March 2025 and would have been BYD’s first EV plant outside Asia.

The company has been expanding its presence in Brazil, its largest overseas market. Since opening a São Paulo factory in 2015 to produce electric bus chassis, BYD has announced significant investments. In 2023, it pledged 3 billion reais ($484.2m) for the EV plant in Bahia.

EV sales in China have surged due to government subsidies encouraging the shift from petrol-powered cars to EVs. However, international markets like the US and EU have imposed tariffs on Chinese EVs. Critics argue these subsidies give Chinese manufacturers an unfair advantage, prompting backlash abroad.

BYD reiterated its commitment to full compliance with Brazilian law and assured it would monitor the situation closely.