BYD Contractor in Brazil Accused of Labor Law Violations and Forced Labor Practices

Brazilian authorities halted construction at BYD's factory after uncovering abusive contracts and poor conditions for Chinese workers brought in by a third-party contractor.

• Brazilian labor inspectors rescued 163 Chinese workers from conditions described as 'slavery-like' at a BYD factory construction site in Bahia state.
• Workers were forced to surrender their passports, had wages sent directly to China, and were required to pay a $900 deposit refundable only after six months of work.
• Investigators found contracts with clauses allowing unilateral contract extensions and imposing fines for minor offenses, which violated labor laws in both Brazil and China.
• BYD claims no prior knowledge of the violations, but Brazilian authorities hold the company accountable for the actions of its contractor, Jinjiang Group.
• The scandal has raised concerns about other Chinese-led projects in Brazil and poses challenges for President Lula, who had hoped the factory would bring significant local job opportunities.

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