Brazil Halts BYD Factory Construction After Workers Rescued from 'Slave-like' Conditions

The Brazilian government has suspended the construction of a factory by BYD, a major electric vehicle producer, following reports of "slave-like" conditions endured by 160 workers in Bahia. The workers faced inadequate accommodations and withheld pay, leading to a swift response from labor authorities.

Brazil has taken significant action against the Chinese electric vehicle (EV) manufacturer BYD by halting the construction of its factory in the northeastern state of Bahia. This decision follows alarming reports from the Public Labour Prosecutor's Office (MPT), which disclosed that over 160 workers were rescued from conditions likened to slavery. These individuals worked for a construction company responsible for the factory site, reportedly facing degrading living environments and having their passports and salaries unfairly withheld.

According to authorities, workers were living in substandard accommodation, with some sleeping on beds lacking mattresses and sharing bathrooms among a staggering 31 individuals. The MPT described the conditions as "alarming" and resembling slavery as defined by Brazilian law, equating their situation with forced labor due to excessive costs associated with contract termination and unpaid wages.

BYD has publicly stated its commitment to comply with Brazilian laws and indicated it has severed ties with the construction firm involved. The corporation claimed to have relocated the affected workers to hotels and emphasized its proactive steps to ensure better living and working conditions for subcontracted employees.

Originally, the factory was projected to begin operations by March 2025 and would have marked BYD's first EV production facility outside of Asia. This setback comes as BYD has been aggressively expanding in Brazil, which serves as its largest overseas market. The company's presence is notable, having surpassed Tesla in electric vehicle sales during the last quarter of 2023.

The ongoing tensions between China and major markets such as the U.S. and EU, particularly regarding tariffs on Chinese EVs, present a complex backdrop for BYD's operations. As global scrutiny over the treatment of workers intensifies, responses like the one from Brazil highlight the need for ethical labor practices within the rapidly evolving automotive industry.