Major Automaker Faces Lawsuit Over Poor Facilities, Including One Toilet for Every 31 Employees and Other Issues | Carscoops

      The Chinese automotive giant has refuted the claims and asserts that it honors labor protections.

      

      Labor prosecutors in Brazil have accused BYD and two contractors of human trafficking.

      Many workers reportedly had their passports taken, and 70% of their salaries were withheld.

      Only one toilet was alleged to be accessible for every 31 workers at the construction site.

      The global automotive sector often downplays controversies with polished press releases and a nonchalant attitude, but the situation in Brazil is becoming increasingly difficult to overlook. Five months after local authorities reported discovering foreign workers at a new BYD factory living in conditions resembling modern slavery, prosecutors have initiated legal action against the Chinese carmaker.

      The lawsuit accuses BYD of human trafficking, a serious allegation, as the country’s leading prosecutors are pursuing around $45 million in damages.

      Read: Brazil Stops BYD Visas Over Alleged Slave-Like Conditions At Construction Site

      The issue extends beyond BYD. Brazilian labor prosecutors have also included JinJiang and Tecmonta, two contractors involved in the project, as co-defendants. Beyond seeking financial compensation, prosecutors demand that each affected worker receive individual restitution and are advocating for court-mandated compliance with labor laws from all three companies. Should compliance not be met, they have included financial penalties for each violation, with fines beginning at approximately $8,800 per incident.

      Wages Withheld, Passports Seized

      “In December of last year, 220 Chinese workers were identified as being in conditions akin to slavery and as victims of international human trafficking,” prosecutors stated. They characterized the living conditions as “extremely degrading.”

      Prosecutors allege that the BYD workers were brought to Brazil to construct the factory without the necessary visas. Furthermore, their employers retained up to 70% of their pay and imposed significant costs for terminating contracts. Many workers also had their passports confiscated, effectively restricting their ability to leave.

      Overcrowded Housing and Poor Sanitation

      Initial reports detailed the living conditions found at the construction site. Workers were allegedly crammed into dormitories with barely enough space to lie down, lacking mattresses, with minimal cooking facilities, and severely inadequate sanitation. At one point, it was reported that only one toilet was available for 31 individuals.

      In a conversation with Al Jazeera, deputy labor prosecutor Fabio Leal underscored the robustness of the case. “Our lawsuit is highly substantiated, with a significant amount of evidence collected during the investigation,” he stated. According to Leal, all workers discovered in December have since been returned to China.

      BYD has denied the allegations, asserting that it is committed to upholding human rights and respects both Brazilian and international labor protections. The company claims to have been cooperating with local labor prosecutors. Leal indicated that discussions between the companies and the labor ministry occurred in late December, but no agreement was reached.