Brazil closes BYD manufacturing plant location due to alleged ‘servitude' circumstances.
Brazilian officials have stopped the construction of a manufacturing plant for Chinese electric vehicle (EV) company BYD, stating that workers were subjected to conditions akin to “slavery”.
Over 160 workers have been rescued in the northeastern Brazilian state of Bahia, as per a statement from the Public Labor Prosecutor's Office (MPT).
They were reportedly placed in a “demeaning” environment and had their passports and wages held back by a construction firm.
BYD stated in a communique that it had severed connections with the company implicated and remained devoted to “complete adherence to Brazilian law”.
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The laborers, employed by Jinjiang Construction Brazil, resided in four lodgings in Camaçari city.
As per prosecutors, at one such accommodation, laborers were forced to sleep on beds lacking mattresses.
Every bathroom was jointly utilized by 31 workers, compelling them to wake up excessively early to prepare for their job.
“The circumstances discovered in the accommodations exposed an alarming scenario of instability and deterioration,” the MPT stated.
“Conditions analogous to slavery,” as outlined by Brazilian legislation, encompass debt bondage and labor that infringes upon human dignity.
The MPT stated that the circumstances also amount to “forced labor,” as numerous employees had their wages withheld and confronted exorbitant costs for terminating their employment contracts.
BYD stated that impacted employees were relocated to accommodations.
BYD mentioned it had performed an in-depth evaluation of the working and living circumstances for contracted workers, and repeatedly requested the construction company to implement betterments.
BYD, an acronym for Build Your Dreams, ranks among the biggest electric vehicle manufacturers globally.
In the final quarter of 2023, BYD outsold Tesla in the electric vehicle market, as the two companies vied for the leading position in the industry.
BYD has been growing its presence in Brazil, which represents the company's biggest international market by a significant margin.
BYD initially established a manufacturing facility in São Paulo in 2015, manufacturing chassis for electric buses.
In the previous year, the company revealed plans to invest 3 billion reais ($484.2m) in Brazil for constructing an electric vehicle manufacturing facility.
In China, electric vehicle sales have witnessed a surge due to government subsidies that incentivize consumers to replace their gasoline-powered vehicles with electric or hybrid models.
However, there is an increasing international backlash against what is perceived as the Chinese government's unfair support for local automotive manufacturers.
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