In a shocking revelation, Chinese workers hired to build BYD’s electric vehicle factory in Camaçari, Brazil, have been found working under exploitative conditions, according to Brazilian labor investigators. The workers, recruited by BYD’s contractor Jinjiang, signed contracts containing abusive clauses that violate both Brazilian and Chinese labor laws.
For many of the 163 Chinese workers, the promise of earning $70 for a 10-hour shift—more than double China’s minimum wage in some regions—seemed like a golden opportunity. However, the reality on the ground was far from ideal. These workers were required to surrender their passports to their employer, a practice often associated with forced labor.
Additionally, a hefty $900 deposit was deducted from their wages, refundable only after completing six months of work. Most of their earnings were also funneled directly to bank accounts in China, limiting their financial freedom in Brazil.
A labor contract obtained by Reuters revealed several alarming clauses. Jinjiang had the unilateral power to extend employment contracts by another six months without the workers’ consent. Workers could also be fined 200 yuan for minor infractions like swearing, arguing, or even walking shirtless in designated areas. Legal experts have flagged these terms as classic indicators of forced labor practices.
Aaron Halegua, a legal expert from New York University, emphasized that withholding passports and imposing security deposits are clear violations under Chinese law. “These are textbook red flags of forced labor,” he stated, highlighting the severity of the situation.
Jinjiang, however, denies the allegations, claiming that Brazilian labor inspectors misunderstood the contract terms due to translation errors. “The claim that Jinjiang’s employees were ‘enslaved’ and ‘rescued’ is totally off base,” the company said in a statement, defending its employment practices both in Brazil and China.
BYD, the parent company, has distanced itself from the controversy. Alexandre Baldy, BYD Brasil’s senior vice president, claimed the company was unaware of any labor violations until reports surfaced in Brazilian media. Despite BYD’s denial, both the automaker and Jinjiang now face charges for obstructing the ongoing Brazilian labor investigation.
This scandal unfolds at a time when Brazil is positioning itself as a key player in the global electric vehicle market, with BYD’s factory being a flagship project. The Brazilian government, committed to upholding labor rights, is intensifying its probe, signaling potential legal repercussions for both companies.
As the investigation progresses, the case sheds light on the darker side of global supply chains, where economic ambitions often overshadow human rights. Companies like BYD, eager to expand internationally, now face the critical task of ensuring ethical labor practices, not just at home but across all their global operations.
