Brazilian labor prosecutors filed a landmark lawsuit against Chinese electric vehicle maker BYD and two subcontractors, alleging systemic exploitation of 220 Chinese workers at a construction site in Bahia state.

The case, rooted in a 2024 investigation, accuses the companies of human trafficking and maintaining conditions classified as “slavery-like” under Brazilian law, including forced labor, wage withholding, and inhumane living arrangements.

Recruitment and Exploitation

Workers were recruited under false pretenses, issued visas for specialized roles, but forced into manual labor such as masonry and welding. Their passports were confiscated, and they endured 12-hour shifts without weekly rest.

Contracts included illegal clauses: up to 70% of wages were withheld as a “deposit,” and termination penalties imposed heavy fines. Some paid $900 upfront to secure jobs, with no pay if they quit before six months.

Living and Working Conditions

Overcrowded housing forced 31 workers to share a single toilet, requiring 4 a.m. wake-ups to access facilities before 5:30 a.m. shifts. Beds lacked mattresses, and food was stored unsafely alongside personal belongings.

Armed guards monitored their movements, restricting freedom. At least four workplace accidents—resulting in amputations and injuries—were reported due to unsafe environments.

Legal and Financial Demands

Prosecutors seek 257 million Brazilian reais ($45 million) in collective moral damages and 50,000 reais per violation per worker. The lawsuit demands compliance with labor laws and individual compensation for each day workers endured exploitative conditions.

BYD terminated its contract with subcontractor Jinjiang after the rescue but faces criticism for alleged surveillance of Brazilian workers post-incident.

Corporate Response and Broader Implications

BYD denies wrongdoing, claiming compliance with Brazilian and international labor standards. The company accuses critics of “smearing” Chinese brands, though it has not addressed specific violations.

The case highlights vulnerabilities in global supply chains, particularly for migrant workers. Brazilian unions have filed separate lawsuits over wage irregularities, while authorities investigate potential criminal charges.

The outcome could set precedents for holding multinational corporations accountable for subcontractor abuses. All claims derive from verified reports by labor inspectors, prosecutors, and documented evidence.

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