Trapped in Squalor: Workers Rescued from ‘Slavery-Like’ Conditions at BYD Factory Site in Brazil

Brazil has ordered a halt to the development of a factory site for the Chinese electric vehicle (EV) powerhouse BYD, citing appalling labor conditions tantamount to "modern-day slavery." In Bahia, a northeastern state, over 160 individuals were rescued, according to a statement issued by the Public Labour Prosecutor's Office (MPT).

Allegations reveal that workers endured an environment described as "degrading," with their passports confiscated and wages withheld by the contracting construction company. BYD, in response, announced its immediate severance of ties with the implicated firm and reaffirmed its dedication to "strict adherence to Brazilian regulations."

Originally slated to begin operations by March 2025, the factory was intended to be BYD's inaugural EV manufacturing facility beyond Asia. The laborers, employed under Jinjiang Construction Brazil, were housed in four substandard accommodations in the city of Camaçari. One such site revealed workers forced to sleep on bed frames devoid of mattresses, as prosecutors outlined. In addition, shared bathrooms—a single one per 31 laborers—compelled individuals to wake at unreasonably early hours to prepare for work.

"The conditions uncovered in these lodgings paint a harrowing portrait of squalor and indignity," remarked the MPT. Under Brazilian statutes, "slavery-like conditions" encompass exploitative arrangements such as debt bondage and practices that undermine human dignity. Prosecutors further labeled the scenario as "forced labor," highlighting withheld wages and prohibitive financial penalties for those attempting to terminate their contracts.

Following the intervention, affected workers were relocated to hotels. BYD stated that a meticulous review of subcontracted laborers’ conditions had been conducted, during which multiple requests for ameliorations were submitted to the construction company. The automaker, officially known as Build Your Dreams, holds a preeminent position in the global EV market, surpassing Elon Musk's Tesla in electric vehicle sales during the final quarter of 2023.

BYD's ambitions in Brazil are noteworthy, as the nation constitutes its largest international market. Since inaugurating a São Paulo facility in 2015 to manufacture electric bus chassis, BYD has continued to expand its influence. In 2022, it committed 3 billion reais (approximately $484.2 million) to establish the now-controversial EV manufacturing plant.

While EV adoption in China has surged due to government-backed subsidies incentivizing the transition from petrol vehicles to electric or hybrid alternatives, international markets remain skeptical. Critics argue that these subsidies give Chinese automakers an unfair advantage, sparking backlash. Countries such as the United States and European Union have responded by imposing tariffs on EV imports from China, with expectations of further trade barriers under the incoming U.S. administration.

The unfolding controversy underscores a collision between economic ambitions and ethical labor practices, raising profound questions about the responsibility of global enterprises in adhering to humane standards across their supply chains.