MercoPress. South Atlantic News Agency

Brazil: Labor Ministry files suit against BYD for slave-like working conditions

The case dates back to findings in December of 2024

Brazil's Labor Ministry (MPT) has filed a public civil lawsuit against Chinese automaker Build Your Dreams (BYD) and two contractor companies, China JinJiang Construction Brazil and Tonghe Intelligent Equipment of Brazil (now Tecmonta), for slave labor and international human trafficking.

In December 2024, following an anonymous complaint, the MPT rescued 220 Chinese workers from a BYD factory construction site in Camaçari, Bahia, where they were subjected to conditions analogous to slavery. The workers entered Brazil irregularly with work visas for specialized services that did not match their actual tasks. They faced exhausting work hours without weekly rest, armed surveillance, withheld passports, and up to 70% of their wages withheld as a bond for early contract termination.

In addition, their living conditions were deplorable, with overcrowded accommodations, inadequate hygiene (e.g., one bathroom for 31 people), and unsafe working environments leading to accidents, including limb amputations. The MPT is seeking a fine of R$ 257 million (approximately US$ 45 million) for collective moral damages, individual fines equivalent to 21 contractual salaries per worker, and additional compensation for each day workers endured these conditions.

BYD terminated its contract with Jinjiang Group and stated it does not tolerate violations of Brazilian law or human dignity. The company is cooperating with the MPT but has faced additional criticism from unions for low wages at its factory.

In a communiqué, the Labor Prosecutor's Office said that “all” the rescued workers had entered the country “irregularly”, with a work visa “for specialized services that did not correspond to the activities they developed at the construction site.” In addition, the workers' passports were withheld, and they were constantly watched by “armed” people to work “exhausting days, without weekly rest.” They were obliged to “pay a bond” and had up to “70% of their wages withheld” in case of early termination of the contract. In addition, they were “crammed into accommodations without the minimum conditions of comfort or hygiene”, in some cases with one bathroom for every 31 people, beds without mattresses, and food mixed with construction materials.

The Brazilian MPT also pointed out that the lawsuit also extends to construction companies China JinJiang Construction Brazil and Tonghe Equipamentos Inteligentes do Brasil (now Tecmonta Equipamentos Inteligentes Brasil). These companies provide exclusive services for BYD in the country.