Brazil Sues BYD Over Alleged Labor Violations and Trafficking

Accusations of Trafficking and Forced Labor
A labor prosecutor filed the suit, demanding 257 million reais in moral damages from BYD, JinJiang and Tecmonta. The case revolves around 220 Chinese laborers who are said to have been lured to the Brazilian state of Bahia on false promises and then forced to work in conditions comparable to modern-day slavery. The workers, who were employed and provided by BYD’s contractors, were found in December by a separate official investigation to have been victims of an international human trafficking and exploitation scheme.

Rather than the compensation itself, the lawsuit seeks to ensure the companies strictly adhere to labor laws, with penalties of 50,000 reais for each violation, multiplied by the number of affected workers.

Company Response and Litigation
BYD says it has a policy to respect human rights and comply with Brazilian and international labor regulations. The company acknowledged that it was cooperating with the investigation and that it intended to give its side of the story in court.

Fabio Leal, a deputy labor prosecutor who has been working on the case, said talks to settle the case had been taking place since December, but no deal was reached. He argued that they were trafficking in the workers, who were brought into the country illegally and treated inhumanely as workers. While the workers have already returned to China, if they were to secure a financial settlement via the lawsuit, it would be paid directly to them, with the Brazilian companies that hired them accountable showing they were paid.

Leal also mentioned interpretation of a court arranged settlement. He sounded optimistic about the case, saying the lawsuit is supported by “compelling evidence” obtained in their investigation.