BYD Contractor Denies Allegations Of 'Slavery-Like' Working Conditions At Factory Site In Brazil

BYD Co Ltd‘s BYDDY contractor Jinjiang Group on Thursday said that the Brazilian authority’s portrayal of its employees working at the Chinese EV giant’s factory in Brazil as “enslaved” is “completely inconsistent with facts.”

What Happened: Jinjiang said that their workers were unjustly labeled as enslaved, making them feel insulted.

“Being unjustly labeled as ‘enslaved’ has made our employees feel that their dignity has been insulted and their human rights violated, seriously hurting the dignity of the Chinese people. We have signed a joint letter to express our true feelings,” Jinjiang said on Weibo, as translated by Reuters news agency.

Lin Yunfei, general manager of branding and public relations at BYD, also reposted the statement.

BYD did not immediately respond to Benzinga’s request for comment.

Why It Matters: Brazilian authorities said on Monday that they have halted the construction of the plant that BYD is building in Salvador, Bahia after finding workers living and working in conditions analogous to "slavery."

Authorities ordered that the construction of the factory in Bahia be stopped after rescuing 163 people working at the site, according to a statement by the Labor Prosecutor's Office (MPT).

The authorities shut down the workers' lodgings and communicated the same to both BYD and construction firm Jinjiang Construction Brazil Ltd, one of the contractors hired by the company to carry out the construction, it added.

The MPT also noted that the conditions constituted "forced labor." If a worker were to terminate their employment contract after six months, they would leave the country without any pay for their work since the company deducted their airfare to and from Brazil, in addition to other costs, the statement said.

BYD was planning to start production at the factory in Brazil in 2025.

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