On November 27, a Brazilian government agency issued a press release stating that it was gathering information to file a lawsuit against the construction of BYD’s new factory in Brazil. The Public Ministry of Labor (MPT) started the investigation into working conditions at the construction site after an anonymous complaint on September 30, followed by an inspection on November 11.
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Adding fuel to the fire is a report by journalist André Uzeda of Agência Pública, which reports physical violence and extremely poor working conditions for the Chinese workers involved. The MPT is currently investigating BYD and the three companies that BYD employs to build the facility.
It is believed that around 470 Chinese workers will be employed by three different contractors in the construction of the site. The Jinjiang Group, which provides the earthmoving service that will prepare the site for the start of construction, is expected to employ the majority, with about 280 workers.
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Open Steel, which is responsible for manufacturing the factory’s metal structure, employs 100 Chinese workers. The third company, AE Corp, which is responsible for assembling the internal metal structure, has about 90 Chinese employees.
The allegations appear to focus mainly on the treatment of the Jinjiang Group and constitute a series of abuses and failure to comply with international labor and safety treaties. Employees must work twelve hours a day, seven days a week, with some working without shoes or hard hats. Workers do not have access to clean drinking water and have been seen drinking from puddles of water.
Images have emerged of dirty bathrooms and inhumane eating conditions for employees. The accommodation is described as dirty, crowded and poorly lit, with no separation between men and women.
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Even more worrying, video, audio and footage has emerged of workers being victims of violence at the hands of foremen. This appears to occur regularly when there is non-compliance or delay in the execution of work.
It is believed that part of the reason for the abuse is that the construction of the factory is behind schedule. The first phase of work required the installation of 26 new structures, including the production plant test track and other equipment. This was planned to be completed by the end of this year, which would allow BYD to complete 150,000 vehicles per year. However, it is now expected to be ready sometime in January.
Brazilian employees working at the companies involved are not subjected to such harsh working conditions. BYD employees work from 8 a.m. to 6 p.m., with an hour for lunch. The employees of the three contractors, on the other hand, work from 7 a.m. to 5 p.m. with a two-hour lunch break. It is believed that around 590 Brazilians are working on the construction of the factory.
When BYD was questioned about the practices, he blamed the Jinjiang Group and demanded that the group take urgent action.
The BYD factory is being built in Camaçari on a 4.6 million square meter plot of land provided by the state government. Construction began in March and is located on the site where Ford operated for nearly two decades before ceasing operations in 2021. BYD paid 287.8 million Real (48 million USD) for the site.
Editor’s note:
An accusation often leveled against Chinese companies operating abroad is the number of Chinese employees working in such locations, especially during the construction phase. As seen in the case of the BYD factory, almost half of the construction workers are Chinese.
Sources: Publica, Bahia Noticias, Carta Capital, CPG