Automaker BYD Entangled in Brazil Controversy Over Labor and Visa Allegations

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Brazil investigates BYD over claims of exploiting Chinese workers under illegal visa schemes.

At a Glance

  • BYD accused of using irregular visas for Chinese workers in Brazil
  • 163 workers reported in slavery-like conditions at construction site
  • Temporary work visas for BYD suspended by Brazilian authorities
  • BYD contests allegations, severing ties with contractor Jinjiang

BYD Under Fire in Brazil

BYD, a leading Chinese electric vehicle manufacturer, faces serious allegations in Brazil related to worker exploitation and illegal visa practices. An investigation revealed that 163 Chinese workers employed at BYD’s construction site in Camacari have been subjected to conditions described as slave-like. This situation has prompted Brazilian authorities to suspend the issuance of temporary work visas for the company.

The Brazilian Public Prosecutor’s Office uncovered cases of degrading treatment and insufficient wages, raising questions about BYD’s labor practices. The workers had entered Brazil on irregular visas, a point noted by labor inspector Liane Durao. Despite these troubling findings, BYD has denied the accusations, labeling them a smear campaign.

Severed Ties and Visa Suspensions

Following the scandal, BYD terminated its contract with the contractor Jinjiang, who denied any wrongdoing. Brazilian authorities halted construction at the site due to the poor conditions. This has impacted the company’s significant $620 million investment in Bahia, intended to produce 150,000 vehicles annually by 2025.

Brazil is considering revoking residence permits for the workers should any visa irregularities be confirmed. BYD has relocated affected workers to hotels and initiated a review of conditions for subcontracted employees as part of its damage control efforts.

China’s Response and Future Measures

The Chinese Foreign Ministry emphasized strict adherence to local labor laws, expressing a willingness to continue cooperation with Brazil. BYD has committed to ensuring that the remaining workers comply with local regulations. Nonetheless, the incident has shone a spotlight on the legal responsibilities of international corporations operating abroad.

BYD faces financial penalties for violations of Brazilian labor laws. The company and its contractor Jinjiang have agreed to provide temporary housing in hotels for the displaced workers. This labor scandal could potentially affect BYD’s reputation on a global scale, particularly within markets where human rights concerns are paramount.

Sources:

  1. BYD brought hundreds of Chinese workers to Brazil on irregular visas-inspector – The Economic Times
  2. Brazil Investigates Chinese EV Giant BYD for Using ‘Irregular Visas’ to Import Slaves – DNyuz