BYD Reportedly Brought Chinese Workers With Irregular Visas To Work At Factory, Says Brazilian Labor Inspector

Chinese EV maker BYD Co Ltd BYDDY reportedly brought hundreds of Chinese workers with irregular visas to work at its upcoming factory in Brazil.

What Happened: In late December, Brazilian authorities halted the construction of the plant that BYD is building in Salvador, Bahia after finding 163 workers living and working in conditions it termed analogous to "slavery." Brazil’s Labor Prosecutor's Office (MPT) then also said that the conditions at the factory  constituted "forced labor."

The 163 workers are now either leaving or have already left the country, Liane Durao, a labor inspector who heads the probe initiated by labor authorities in Bahia, told Reuters. Durao also said that BYD would be fined for each worker rescued, without detailing the amount.

The company has now pledged to comply with local labor laws for its remaining hundreds of workers in Brazil, Reuters reported, while noting that about 500 Chinese workers were brought to work at the factory.

The Brazilian government has now suspended temporary visa issuance to BYD, the report said.

Why It Matters: BYD previously said that it has cut ties with its contractor Jinjiang Group after Brazilian authorities flagged the issue. Jinjiang, meanwhile, said in December 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."

BYD which sells its EVs in Brazil, was planning to start production at the factory in Brazil in 2025. It is unclear if the investigation into working conditions at the factory will delay its opening.

The EV maker did not immediately respond to Benzinga’s request for comment.

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