Fabio Teixeira and Luciana Magalhães
– Electric vehicle maker BYD (SZ:) brought in hundreds of Chinese workers on illegal visas to build a plant in Brazil, a key labor inspector told Reuters on Tuesday, adding that the company was committed to complying with local labor laws for workers remaining in Brazil. country.
A total of 163 of these workers, employed by contractor BYD Jinjiang, were found to be working in “slavery-like conditions” last month.
163 workers rescued by labor authorities in December are leaving or have already left Brazil, said Liana Durao, who led the investigation announced in late December.
“This was all irregular,” Durao said, adding that BYD would be fined for each worker caught in this situation, without specifying the total amount to be paid.
She said the firm had agreed to bring the conditions of hundreds of workers who will remain in the country into line with Brazilian labor laws. About 500 Chinese workers were hired at the Brazilian plant, she said.
BYD and Jinjiang did not immediately respond to requests for comment. BYD previously said it had cut ties with Jinjiang, which disputes the allegations by Brazilian authorities.
A person close to BYD told Reuters that the Chinese company believes the visas were issued correctly and that all employees came to work in Brazil voluntarily.
The plant has become a symbol of China’s growing influence in Brazil and an example of closer relations between both countries.
Labor authorities and representatives of BYD and its contractors working in Bahia met on Tuesday to discuss how to protect the rights of all workers working at the plant.
KEY TO BYD’S GLOBAL EXPANSION
BYD was initially building the plant to produce 150,000 vehicles as part of plans to start production in Brazil, its largest market outside China, earlier this year. It is unclear whether construction will be delayed due to the investigation into working conditions at the plant.
The company invested $620 million in the creation of the production complex in Bahia alone. Nearly one in five BYD vehicles sold outside China in the first 11 months of 2024 were in Brazil.
In December, labor prosecutors named workers employed by Chinese construction firm Jinjiang Group as victims of human trafficking. Investigators said the firm seized the passports of 107 workers.
Slavery investigations could have serious consequences for employers in Brazil, including limiting their access to bank loans.
Because the workers were found in slavery-like conditions, the Brazilian government suspended the issuance of temporary visas for BYD.
Reports of abuses in Bahia could prove a stumbling block in bilateral relations.
Brazil has long been seeking more Chinese investment. But Beijing’s model of bringing Chinese workers to countries where it invests poses a challenge to local job creation, a priority for President Luiz Inacio Lula da Silva.
The investigation has also brought unwanted attention to BYD as it seeks to expand its global market presence and strengthen its dominance in China, the world’s largest auto market, where the company accounts for more than a third of the market for electric vehicles and plug-in hybrids.
Durao said labor inspectors will continue to monitor the BYD construction site to ensure that workers who continue to work at the plant are not subjected to abusive working conditions.