RIO DE JANEIRO, Dec 28, (V7N) — Brazilian authorities are investigating Chinese electric vehicle maker BYD and its contractor Jinjiang Open Engineering for alleged human trafficking and labor exploitation involving 163 Chinese workers at a factory construction site in the northeastern state of Bahia.
The workers, tasked with building BYD's largest electric car plant outside Asia, were found in what labor inspectors described as "slave-like conditions." Federal prosecutors are considering criminal charges after uncovering evidence of "international trafficking for the purpose of labor exploitation," according to a government statement.
Labor inspections since November revealed several violations, including:
Overcrowded accommodations with inadequate facilities, such as beds lacking mattresses and a single bathroom for every 31 workers.
Signs of forced labor, with workers' passports confiscated and 60% of their salaries withheld by the employer.
Harsh working conditions under the sun, leaving workers with visible skin damage.
The Bahia regional ministry for works ordered a partial suspension of construction activities at the site.
BYD's Brazilian subsidiary terminated its contract with Jinjiang after the allegations surfaced. The company relocated the affected workers to hotels and pledged to cooperate with authorities. BYD spokesperson Li Yunfei strongly denied the accusations, alleging they were part of an orchestrated effort to discredit Chinese brands and undermine China-Brazil relations.
Jinjiang also denied the allegations, claiming they insulted the dignity of Chinese workers and violated their human rights. The company vowed to address concerns raised by Brazilian officials, including properly registering workers in Brazil's tax system and ensuring fair treatment and compensation.
China’s foreign ministry spokeswoman Mao Ning acknowledged the reports and stated that Beijing was verifying the situation. She emphasized China’s commitment to protecting labor rights and requiring its enterprises to operate lawfully abroad.
Authorities have set a follow-up hearing for January 7, during which BYD and Jinjiang are expected to present measures to address the labor violations. Additionally, Jinjiang has been instructed to facilitate the repatriation of seven workers returning to China on January 1, providing them with airfare and travel expenses.
The investigation casts a spotlight on labor practices at a time when BYD is expanding its global footprint. The outcome of this case may have broader implications for the reputation of Chinese enterprises operating internationally and their compliance with labor standards.
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