Construction of BYD's new EV plant in Brazil was abruptly halted on Monday after authorities found Chinese workers in “slavery-like” conditions. The workers were employed in China by another company, and BYD has cut ties. BYD and the firm now say the word “slavery” was used improperly, and other translations may have been misunderstood.
Why construction at BYD's EV plant in Brazil has been halted
Updated 12/26/24: This article has been updated with the latest information, including a statement from Jinjiang Group and comments from BYD's general manager of public relations, Li Yunfei. Read more below.
According to a statement from the Ministry of Public Manpower (MPT), 163 workers at the construction site of BYD's new EV plant in Salvador, Brazil, were “held in slave-like conditions.”
Construction of the site was suspended on Monday after the results. According to authorities, Jinjiang Group, one of the contractors hired by BYD to build the new EV plant, hired workers in China.
BYD released a statement saying it has severed ties with Jinjiang and is helping victims as it works with Brazilian authorities. All employees will be transferred to hotels. They will not be able to work and their contracts will be terminated.
Alexandre Baldy, senior vice president of BYD Brazil, said the company “remains committed to fully complying with Brazilian laws, especially regarding the protection of workers' rights and human dignity.”
The MPT statement details the “slavery-like” labor conditions. For example, they had one bathroom for 31 workers, which forced them to get up at 4 am to get in line to be ready for work at 5:30 am. They slept without mattresses on their beds, and the kitchens worked in “horrendous conditions.”
If the employee quits the job after six months, he will leave the country without pay after calculating the cost of the round trip air ticket.
BYD said it held a “detailed review” a few weeks ago. The Chinese EV giant asked Jinjiang several times to improve conditions.
A joint joint hearing of MPT and MTE is scheduled for December 26. MPT said the need for a new “site inspection” has not been ruled out. BYD's new EV plant is expected to start production next year. Check back soon for more updates on the situation.
Update 12/26/24: Jinjian Group said the depiction of its workers working in “slavery-like” conditions was inconsistent, and some interpretations may have been misunderstood.
“Being unfairly called 'slaves' has made our workers feel that their dignity is being insulted and their rights are being violated, which seriously harms the dignity of the Chinese people,” Jinjiang said in a social media post (via. Reuters). The company issued a joint letter to issue an apology.
BYD's general manager of public relations, Li Yunfei, also issued a statement. Li added that “foreign forces” and other members of the media are “deliberately slandering the Chinese.
Mr. Mao Ning, spokesperson for the Ministry of Foreign Affairs of China, said that the Chinese embassy in Brazil is discussing with the leaders of the region to confirm whether the allegations have been made.
BYD is already the best-selling EV brand in Brazil. In October, it launched its first pickup, the Shark PHEV. The van is BYD's sixth vehicle in Brazil, joining other popular models such as Dolphin Mini (Seagull), Yuan Plus, and Dolphin.
Once up and running, which is expected later this year or early 2025, BYD's Brazil plant will have a production capacity of 150,000 vehicles per year.
Source: Bloomberg, Brazil Public Ministry of Labor
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