- Chinese automaker BYD is building a new manufacturing plant in Bahia, Brazil.
- Authorities found 163 workers on the project living in inhumane “slave-like conditions.”
- BYD is currently severing ties with the Chinese construction company responsible for the infringement.
Chinese automaker BYD has been aggressively expanding its global footprint, and Brazil is a key part of its growth strategy. However, that momentum came to an abrupt halt on Monday when Brazilian authorities halted construction of a new manufacturing plant, throwing the company’s plans into uncertainty.
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Jinjiang Construction, the construction company responsible for the project, treated its 163 workers as modern-day slaves, according to government officials. The workers were reportedly hired by another company in China and were allegedly brought to Brazil through unconventional and highly questionable means. To make matters worse, more than 100 of them had their passports seized, effectively leaving them in a situation of exploitation.
The conditions we are talking about here are truly brutal. Workers live on construction sites. The company’s accommodation for 31 employees includes beds without mattresses and a bathroom. As a result, an official government report says workers typically wake up around 4 a.m. so everyone can use the bathroom before starting work at 5:30 a.m.
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The Public Labor Prosecutor’s Office said: “In one of the rooms occupied by a cook, jars containing prepared food were found open on the floor, exposed to dirt and not refrigerated, and were left open the next day. Enjoy.” As if that wasn’t bad enough, Jinjiang Construction Brazil Ltd., a construction company based in Sichuan, China, is apparently making life even more difficult when it comes to pay and job freedom.
“Workers were required to pay deposits, had 60% of their wages withheld (only receiving 40% of their salary in RMB), faced exorbitant fees for contract termination, and the company withheld their passports,” the authorities added.
These conditions are bad enough that Jinjiang Brazil Ltd. is now banned from continuing operations. Although the workers are still living in their original residences for the time being, they are no longer allowed to work for Jinjiang. The authorities are scheduled to meet with BYD and Jinjiang on the 26th to determine the next step.
Alexandre Baldy, Senior Vice President of BYD Brazil, said: “BYD Auto Brazil reaffirms its commitment to fully comply with Brazilian laws, especially with regard to the protection of workers’ rights and human dignity.”
BYD, short for Build Your Dreams, is already China’s best-selling electric car brand and the new factory is expected to come online next year. However, it’s unclear how the controversy will affect the company’s future plans.
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