Brazil prosecutors have filed a lawsuit against Chinese carmaker BYD for allegedly violating the labor rights of its staff, accusing it of ‘slave-like’ conditions at the company’s construction site in the country.
The prosecutors, in a statement, said that they were seeking 257 million reais ($45m) in damages from BYD and two contractors, China JinJiang Construction Brazil and Tecmonta Equipamentos Inteligentes.
Prosecutors have accused the three companies of trafficking Chinese workers to build a BYD plant in Camacari, Bahia, subjecting them to “extremely degrading” conditions. According to the statement, in December last year, 220 Chinese workers were found in conditions similar to slavery and were victims of international human trafficking.
As part of the lawsuit, prosecutors are also looking to force the companies to comply with various labor rules and seek a fine of 50,000 reais per violation, multiplied by the number of affected workers.
The statement also revealed that last year, construction of a plant was halted due to cramped accommodation, poor hygiene, and confiscated passports of workers. The prosecutors claimed that workers were working under illegal contracts with exhausting hours and no weekly rest, adding that up to 70% of their salaries were withheld, and termination costs were high.
Brazilian law defines “slavery-like conditions” as debt bondage and work that violates human dignity.
Chinese automaker has stated its firm commitment to human rights and cooperation with authorities. A spokesman for the company said in December that allegations of poor working conditions were part of an effort to “smear” China and Chinese companies.
However, Brazilian labor prosecutors rejected the idea that the lawsuit was based on anti-Chinese sentiment, saying the lawsuit is “well-founded”.
BYD, recognized as one of the world’s largest EV makers, outsold its rival, Tesla, in Europe for the first time, according to reports by auto research firm Jato Dynamics.
