SALVADOR/SÃO PAULO (Reuters) – – Chinese electric vehicle maker BYD brought hundreds of Chinese workers with irregular visas to build its factory in Camaçari (BA), the labor auditor responsible for investigating working conditions at the company told Reuters on Tuesday -day, adding that the company has committed to complying with Brazil’s labor laws for workers who remain in the country.
A total of 163 such workers, hired by BYD contractor Jinjiang, were found last month working in “slave-like conditions.”
All of them are leaving or have already left Brazil, said Liane Durão, who led the investigation announced at the end of December. She added that around 500 Chinese workers in total were brought into the country by BYD.
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“All of this was irregular,” said Durão, adding that BYD will be fined for each worker found in this situation, without going into detail about the total amount to be paid.
The auditor said BYD agreed to adjust the conditions of the hundreds of workers who will remain in the country to comply with Brazilian labor laws.
BYD and Jinjiang did not immediately respond to a request for comment. BYD has previously said it has cut ties with Jinjiang, which disputes the Brazilian authorities’ accusations.
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A source close to BYD told Reuters that the Chinese company believes the visas were issued correctly and that all employees came voluntarily to work in Brazil.
The factory has become a symbol of China’s growing influence in Brazil and an example of a closer relationship between the two countries.
Labor authorities and representatives from BYD and its contractors working in Bahia met this Tuesday to negotiate how to protect the rights of all workers employed at the factory.
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KEY TO BYD’S GLOBAL EXPANSION
BYD is building the Camaçari factory with capacity to initially produce 150,000 cars per year. Brazil is the brand’s largest market outside of China. It is unclear whether construction will be delayed by the investigation into working conditions at the company’s facilities in Bahia.
BYD invested 620 million dollars in the installation of the Bahia manufacturing complex alone. Almost one in every five cars BYD sold outside China in the first 11 months of 2024 was in Brazil.
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In December, the Public Ministry of Labor described the workers, who had been hired by Chinese construction company Jinjiang Group, as victims of human trafficking. The company had withheld the passports of 107 of the workers, according to investigators.
Slavery investigations can have serious consequences for employers in Brazil, including restricting access to bank loans.
Since the workers were found in conditions similar to slavery, the Brazilian government suspended the issuance of temporary visas to BYD.
Reports of irregularities in Bahia could become a major point of friction in bilateral relations.
Brazil has long sought more Chinese investment. But Beijing’s model of bringing Chinese workers to the countries where it invests represents a challenge for creating local jobs, a priority for President Luiz Inácio Lula da Silva.
The investigation also brought unwelcome attention to BYD as it seeks to expand globally and build its dominance in China, the world’s largest auto market.
Labor inspectors will continue to monitor the BYD construction site, Durão said, to ensure that workers who remain employed at the factory are not being subjected to abusive working conditions, he said.
