The construction of BYD’s new EV plant in Salvador, Brazil, came to an abrupt halt on Monday after authorities discovered workers in conditions described as “analogous to slavery.” The revelation has sparked controversy and scrutiny, with BYD cutting ties with the contractor involved and pledging to cooperate with Brazilian authorities.
Authorities Discover Alarming Worker Conditions
According to Brazil’s Public Ministry of Labor (MPT), 163 workers employed at the construction site by the Chinese contractor Jinjiang Group were found living in harsh conditions. Reports highlighted severe issues, including:
- Overcrowded facilities: One bathroom for every 31 workers.
- Substandard living conditions: Workers slept without mattresses.
- Unhygienic kitchens described as “alarming.”
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Additionally, workers allegedly faced exploitative contracts. If they quit after six months, they were left without pay, as the cost of round-trip airfare from China was deducted from their earnings.
BYD Takes Immediate Action
In response to the allegations, BYD issued a statement affirming its commitment to workers’ rights and Brazilian labor laws. The company has terminated its relationship with Jinjiang Group and is assisting the affected workers.
“BYD remains committed to full compliance with Brazilian legislation, especially regarding the protection of workers’ rights and human dignity,” said Alexandre Baldy, senior vice president of BYD Brazil.
The workers will be relocated to hotels, their contracts will be terminated, and they will no longer be allowed to work under the current arrangements.
Jinjiang Group Responds to Allegations
The Jinjiang Group, the contractor responsible for employing the workers, has pushed back against the accusations, claiming the use of the term “slavery-like” conditions is inaccurate.
In a social media statement, Jinjiang expressed that being labeled as enslaved workers “seriously hurt the dignity of the Chinese people.” The company attributed some of the controversy to alleged translation errors and misrepresentation.
Chinese Government and BYD Address Accusations
The Chinese foreign ministry, through spokesperson Mao Ning, announced that the Chinese embassy in Brazil is working to verify the allegations. Meanwhile, BYD’s general manager of public relations, Li Yunfei, echoed Jinjiang’s concerns, alleging that “foreign forces” and some media outlets are deliberately smearing Chinese brands.
The Future of BYD’s EV Plant in Brazil
BYD’s new EV plant, once operational, is expected to produce 150,000 vehicles annually, making it a critical hub for the automaker’s growing presence in Brazil. BYD is already a market leader in the country, offering popular models like the Shark PHEV pickup, Dolphin Mini, and Yuan Plus.
Despite the delays, BYD remains optimistic about launching production at the Salvador facility by late 2024 or early 2025.
Ongoing Investigations and Next Steps
The MPT and Brazil’s Ministry of Labor and Employment (MTE) will hold a joint virtual hearing on December 26 to address the situation further. Additional on-site inspections have not been ruled out.
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Stay Updated on BYD’s Developments in Brazil
As this situation evolves, BYD’s response to these serious allegations will be under close scrutiny. With its reputation as a global EV leader at stake, the company’s handling of this crisis will likely influence its operations in Brazil and beyond.
For the latest updates on this story and other EV industry news, stay tuned to TechExclusive!
