Brazilian labour prosecutors have initiated legal action against Chinese carmaker BYD, accusing the company and its contractors of human trafficking and exposing workers to “slavery-like conditions” in the construction of a factory.
BYD, along with contractors JinJiang and Tecmonta, faces a lawsuit seeking 257 million reais ($45m) in moral damages, with additional individual compensation for the workers.
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The lawsuit also aims to enforce labour regulations and suggests fines of 50,000 reais per infraction, multiplied by the number of workers affected.
In their defence, BYD has stated its commitment to human rights and adherence to Brazilian and international labour laws.
The company has been in discussions with labour prosecutors and intends to formally respond to the allegations through court documents.
The labour prosecutors’ office revealed that in December 2024, 220 Chinese workers employed by BYD contractors in Bahia, Brazil, were discovered working under conditions likened to modern slavery.
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By GlobalDataThese workers, who have since returned to China, were also deemed victims of international human trafficking.
Deputy labour prosecutor Fabio Leal mentioned that negotiations with the three companies started in late December but did not lead to a resolution.
Leal emphasised that the workers were brought to Brazil under false pretences and were not provided with the promised working conditions.
Leal further explained that any compensation awarded from the lawsuit would be distributed to the workers in China, with the responsibility of proving payment resting on the Brazilian companies.
He also noted that while a settlement is still an option, it would now require court mediation.
Leal stated: “Our lawsuit is very well-founded, with a substantial amount of evidence provided during the investigation process.”
