The big car manufacturers are not experiencing a calm moment. A concern that affects, for example, Chinese producers, given the battery of tariffs that both Europe and the United States are imposing to face the growing competition from their much cheaper electric vehicles. One of those Chinese automotive giants, BYD, has also faced a new problem: the accusation by the Brazilian Government that workers have been employed in “slavery-like conditions” during the construction of a factory. in that country.
The Brazilian Ministry of Labor and Employment (MTE) assured, in the middle of Christmas, that it had “rescued” 163 workers in the metropolitan region of Salvador, the capital of the State of Bahia. They were working on the construction of the BYD factory, which is being carried out by an intermediary company, Jinjiang Group. The investigations, as explained by Ministry in a statementbegan on December 9 and, in them, the Police and the Brazilian Prosecutor’s Office have also participated.
These inspections revealed, according to the Ministry, a series of alleged irregularities, both in working conditions, salaries and health. For example, the MTE details that the workers “had their passports withheld, which prevented both departure and return to their country of origin”, that they were required to work hours that “reached 10 hours a day” with “irregular days off” and that they were “forced to rest, often, on construction materials.” Also, that “60% of their salaries were withheld and they only received 40% in Chinese currency.”
“The precarious conditions, combined with exhausting work hours, caused frequent workplace accidents,” indicates the Ministry of Labor. “One of the workers reported an eye accident without access to adequate eye care, while another suffered an accident attributed to lack of sleep, caused by exhausting work days and degrading housing conditions,” he argues.
Regarding the latter, the MTE affirms that it inspected the accommodations, managed by the Chinese company Jinjiang Construction Brazil, and speaks of “extremely degrading conditions for the workers.” “The beds had no mattresses, there were no closets and personal belongings were stored with the food. The bathrooms were insufficient and precarious” and mentions that “only one bathroom served 31 workers.”
“This precarious health situation forced workers to get up at 4 in the morning to wait in line and go to work at 5:30 in the morning. Furthermore, the bathrooms were not separated by sex, they lacked seats and were in inadequate hygienic conditions,” he points out.
Following the investigation by the Brazilian Executive, BYD assured that it had cut all ties with the contracting company, according to the agency. Reutersand that it was collaborating with the Brazilian authorities to provide assistance to the 163 employees.
However, there is more swell. According to the same agencythe contracting company, Jinjiang posted on the Chinese social network Weibo that employees have been “unfairly labeled” as “enslaved,” which “makes them feel their dignity is insulted.” Some comments that, on that same social network, a BYD Brand and Public Relations manager, Li Yunfei, replied to ensure that “foreign forces” were “deliberately defaming Chinese brands” to “undermine the relationship between China and Brazil.” .
Aside from these responses, the Brazilian Ministry assures that, in recent days, it has met with both BYD and Jinjiang Construction Brazil and that the workers have been relocated to hotels. Also, of the more than 160 employees, almost a dozen plan to return to China in the coming weeks. A new meeting is scheduled for next Tuesday where companies have to respond to the demands put forward by the Brazilian authorities.
The fight to be the largest electric manufacturer
This labor scandal can damage the image of the Asian multinational in Brazil, one of the largest markets that has also approved raising tariffs starting in 2026, from the current 18% to 35%.
BYD is not only one of the largest Chinese electric car manufacturers. It is also fighting hand in hand with Tesla to be the company in the sector that achieves the highest sales volume. In fact, this fall it surpassed the American giant. In the third quarter of 2024, which runs from July 1 to September 30, BYD invoiced the equivalent of 27.2 billion euros, while Tesla stood at 24.2 billion. Of course, there are differences in terms of business, because BYD also makes plug-in hybrids, not just electric ones.
In Spain, BYD sales skyrocketed by more than 750% in 2024, according to data published by industry associations. They went from the 628 vehicles sold in 2023 to 5,393 in the year that just ended. Despite the exponential growth, it is still far from Tesla, because the brand founded by Elon Musk registered 16,680 cars in the past 12 months, 26% more than a year before.
The Chinese company has clothed itself in a history of improvement. For example, he points out that BYD is an acronym for the English expression ‘build your dreams’. Its founder is Wang Chuanfu, who in the 1990s started a battery company, for which he had to request a loan of just over 300,000 euros. Years later, he transformed the company into an affordable electric car company and, from there, to success and obtaining the support as shareholders of investment giants such as Blackrock or Berkshire Hathaway, Warren Buffett’s investment arm.
Accusations regarding working conditions in Brazil are by no means an isolated case. Also in December, the Ministry of Labor uncovered another similar case, of 14 employees who worked in “slavery-like conditions” at the festival. Rock in Rio 2024 already more than a hundred children and minors employed in street markets from different cities.
In 2023 alone, the Brazilian Prosecutor’s Office detected more than 3,000 people working in these types of conditions. Some situations that have also been linked to Spanish companies. More than a decade ago, the Brazilian Ministry of Labor revealed the working conditions of one of Inditex’s suppliers in that country, which had to reach an agreement with the Administration and commit to improving conditions. production conditions of subcontracted companies.
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