Brazilian federal prosecutors have initiated legal action against Chinese electric vehicle manufacturer BYD, accusing the company of subjecting workers to “slave-like conditions” at one of its factories in the northeastern state of Bahia. The lawsuit alleges that employees were subjected to excessive working hours, withheld payments, and substandard living conditions.
The case focuses on BYD’s operations in Camaçari, where it is building a major manufacturing complex. Prosecutors claim that a subcontractor for the automaker housed workers in overcrowded accommodations, often lacking proper sanitation. Reports also highlight that many workers were recruited from other states and that some were denied pay for weeks while being pressured to remain at the job site.
According to the complaint, these conditions are in violation of Brazilian labor laws, particularly concerning the dignity and safety of workers. The prosecutors have requested a court order mandating BYD and the subcontractor to pay 50 million reais ($9.7 million) in damages for moral and collective harm.
BYD has denied the allegations. In a statement released Tuesday, the company said it complies with all local labor laws and that it is conducting an internal investigation into the subcontractor’s practices. The company emphasized its commitment to ethical and responsible labor standards and stated it would cooperate fully with the authorities.
The lawsuit comes at a time when BYD is expanding its footprint in Latin America as part of a global push to challenge Tesla’s dominance in the EV market. The Bahia facility is a key part of BYD’s expansion strategy in Brazil, where it plans to produce electric buses, trucks, and batteries.
Labor watchdogs have praised the prosecutors’ actions, citing concerns about increasing labor violations in the wake of Brazil’s economic push to attract foreign investment. “It’s critical to ensure that companies operating in Brazil adhere to the same standards expected globally,” one labor rights advocate told Al Jazeera.
The court is expected to begin preliminary hearings in the coming weeks. If the allegations are upheld, BYD could face further scrutiny and potential sanctions, which may impact its operations and reputation in Brazil and beyond.
Authorities have not confirmed whether any criminal charges will be filed, but the case is being closely watched as a potential landmark in enforcing labor laws against international corporations operating in Brazil.
