Labor prosecutors allege that workers were illegally taken to Brazil and struggled under “slavery-like conditions.”
Brazilian labor prosecutors filed a lawsuit against Chinese automaker BYD and two contractors over allegations of illegal human trafficking workers to live and work under conditions “similar to slavery.”
On Tuesday, prosecutors were charged with enforcement of labor law and said in a statement that they would seek 257 million ($45 million) in damages from contractors in BYD and China’s Jinjiang Construction Brazil and Tekmonta Ipanient.
They criticized the three Chinese workers’ trafficking companies for the construction of a BYD factory in Kamakari, northeastern Bahia. So prosecutors argue that businesses have exposed workers to “extremely degraded.”
“It was discovered last December that 220 Chinese workers were in a similar state to victims of slavery and international human trafficking,” the statement said.
Prosecutors are seeking a fine of 50,000 Reais ($8,867) per violation, multiplied by the number of workers affected, in addition to moral damage.
The lawsuit was the result of a police attack in December 2024, with authorities saying they “rescued” 163 Chinese workers from Jiu-Jitsu and 57 Chinese workers from Tekmonta.
Prosecutors say the workers were victims of international trafficking and were brought to Brazil with visas that were not suitable for their work.
They also argue that construction site conditions left workers almost entirely dependent on their employers by withholding up to 70% of wages and imposing a high cost of contract termination costs. Prosecutors said some of the workers took their passports and limited their ability to leave.
The lawsuit also explains a few living conditions, including several beds without mattresses.
“In one dormitory, only one toilet was identified for 31 people to use, so workers were awake to wash around 4am before they started work,” a statement from the prosecutor said.
Brazil is the largest market for BYD outside of China. The Chinese automotive giant says it is committed to human rights, is working with authorities, and will respond to lawsuits before court.
A spokesman for the company said in December that allegations of poor working conditions were part of efforts to “paint” China and Chinese companies.
However, Brazilian labor prosecutors rejected the notion that their cases were based on anti-China sentiment.
“Our lawsuits are very well-founded and a significant amount of evidence is provided during the investigation process,” Labour prosecutor Fabio Real said in an interview.
He said workers who have returned to China will receive payments related to the lawsuit in which Brazilian companies are responsible for providing proof of payment.
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