BYD's Brazilian Factory Scandal: Labor Violations Uncovered

Chinese workers hired to build BYD's new factory in Brazil faced alleged labor abuses, including withheld passports and unlawful contract clauses. While the factory promised to bring local jobs, controversies over forced labor practices cast a shadow over the project and Brazil-China relations.

Workers from China traveled to northeast Brazil to construct a factory for electric vehicle manufacturer BYD. They earned about $70 per 10-hour shift, over twice the Chinese minimum wage, making it initially appealing. However, getting out of the job proved difficult as they faced labor conditions alleged to be coercive.

The Chinese workers, hired by BYD contractor Jinjiang, were required to surrender their passports, with most wages sent back to China. In addition, they paid a deposit only recoverable after six months, according to a labor contract seen by Reuters. Clauses within the contract were said to breach laws in both Brazil and China, as noted by labor experts.

Amid claims of 'slavery-like conditions,' inspectors later found workers living in poor conditions. BYD, unaware of alleged violations until Brazilian media reports, promised to resolve the issue. Labor inspectors, however, argued the company is responsible for its contractor's actions on site, and BYD now faces potential legal action and scrutiny from local unions and politicians.

(With inputs from agencies.)