Brazilian labor prosecutors have filed a civil lawsuit against Chinese electric vehicle manufacturer BYD and two subcontractors over alleged labor violations during the construction of a new EV plant in Camacari, Bahia. Authorities say 220 Chinese workers were subjected to conditions “analogous to slavery,” including overcrowded housing, unsanitary living conditions, and contract irregularities.
The lawsuit, brought by the Public Labour Prosecutor’s Office (MPT), follows an anonymous tip that led to an investigation and subsequent discovery of multiple labor law violations. Prosecutors allege that workers were forced to sleep without mattresses, had their passports confiscated, and were made to work long hours with no days off. Reports also claim 60% to 70% of their wages were withheld, and contracts included illegal provisions.
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The MPT is seeking 257 million reais (approximately $51.5 million) in damages from BYD and the associated contractors. Construction on the Camacari factory was suspended in late 2023 following the revelations. BYD, which had promoted the site as its first electric vehicle production hub outside Asia, had not responded to the lawsuit at the time of publication.
“Brazilian law defines slavery-like conditions not only as forced labor, but also degrading housing, debt bondage, and restrictions on workers’ rights,” prosecutors stated. BYD has previously said it maintains a “zero tolerance for violations of human rights and labor laws.”
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The allegations come at a pivotal time for BYD, which recently surpassed Tesla in EV sales across Europe and is aggressively expanding its global footprint. The lawsuit could cast a shadow over its international reputation and expansion plans, particularly in Latin America.
Source: Public Ministry of Labor – Brazil