Brazil Halts BYD Electric Vehicle Factory Construction Amid Labor Concerns

Brazilian authorities have suspended the construction of a BYD electric vehicle (EV) factory in Bahia state following the rescue of 163 Chinese workers reportedly subjected to conditions resembling modern slavery. These workers were employed by Jinjiang Construction Brazil Ltd., a subcontractor engaged to construct the facility for the Chinese EV giant.

The Labor Prosecutor’s Office disclosed that these workers experienced squalid living conditions, had their passports confiscated, and saw 60% of their wages withheld. In light of these findings, BYD promptly severed ties with Jinjiang Construction, pledging to uphold the rights of subcontracted workers.

In a decisive move, Brazilian officials have also paused the issuance of temporary work visas related to BYD projects, citing allegations that workers were trafficked into the country under irregular circumstances.

A History of Labor Exploitation

The investigation revealed pervasive labor violations, including instances of overcrowded living quarters with insufficient facilities. Reports indicated that one dormitory housed 31 workers but had only a single bathroom, compelling them to rise at 4 a.m. for a 5:30 a.m. work start.

Workers also faced the dramatic withholding of wages, with deductions for costs imposed on those who resigned before completing six months, leaving them with empty pockets after financing their own return airfare. Additionally, there were reports of accidents, including one worker who was injured after enduring 25 consecutive days of labor.

In response to these conditions, authorities have mandated that the living accommodations be closed until they conform to health and safety regulations.

BYD’s Involvement and Reactions

Despite claims by BYD of having conducted a thorough assessment of working conditions in the weeks prior to the site’s closure and having urged Jinjiang Construction to implement necessary changes, the situation remains troubling. Alexandre Baldy, senior vice president of BYD Brazil, reaffirmed the company’s commitment to adhere to Brazilian labor laws and protect workers’ rights. BYD has proactively relocated affected workers to hotels and has reiterated its dedication to respecting and upholding labor standards.

However, spokesperson Li Yunfei offered a more defensive narrative in response to the Labor Prosecutor’s Office’s findings. On his Weibo account, he accused foreign entities of attempting to malign Chinese businesses and disrupt Sino-Brazilian relations.

Moving Forward

The construction halt poses potential challenges for the anticipated opening of the Bahia plant next year. Nevertheless, BYD has made significant inroads in the Brazilian market, selling over 66,000 electric and hybrid vehicles this year alone. Yet, the allegations of worker mistreatment cast a shadow over the company’s operations and call into question its oversight of subcontractors.

Rebuilding trust with Brazilian authorities and the public will undoubtedly be crucial for BYD as it navigates this challenging landscape and seeks to fulfill its ambitious vision in South America.

Source:www.autoblog.com