Brazil Takes Legal Action Against BYD Amidst Claims of Coerced Labor Practices

As reported by the Associated Press,Brazil has initiated legal action against the Chinese automotive giant BYD,alleging that the company subjected its workers too conditions akin to slavery and was involved in human trafficking.

The lawsuit, filed on May 27 by brazilian labor prosecutors, targets BYD along with two of its contractors, demanding a hefty sum of 257 million Brazilian reais (approximately $50 million) in damages. The case centers around 220 Chinese workers who were rescued from a BYD factory construction site in December 2024.These individuals reportedly entered Brazil under misleading circumstances and faced “extremely degrading” working environments.

Prosecutors have highlighted alarming conditions across five different sites managed by BYD and its contractors. Workers allegedly slept on bare beds without mattresses, had minimal access to sanitation facilities, and endured grueling hours without any days off. Federal agents further revealed that up to 70% of their wages were withheld; employees were required to pay deposits to their employers while having their passports confiscated. If any worker chose to leave before their contract ended, they risked losing their deposit and being obligated to reimburse the cost of their flight into Brazil.

In response to these serious allegations, BYD stated it is fully cooperating with ongoing investigations and plans to provide more information as the situation unfolds. A spokesperson for the company previously suggested that these claims are part of a broader smear campaign targeting Chinese enterprises.