Brazilian officials have filed a major lawsuit against Chinese electric carmaker BYD, accusing the company and two contractors of using 220 Chinese workers in "slave-like" labor conditions while building a factory in the state of Bahia.
The lawsuit, announced on Tuesday by Brazil's labor prosecutors, also includes charges of international human trafficking.
According to AP, Prosecutors are seeking 257 million reais (about $45 million) in damages from BYD and its contractors JinJiang Construction and Tecmonta Equipamentos.
The case also demands that each worker be paid compensation and that the companies face fines for any labor violations.
This legal action follows a December investigation that revealed the workers were living in very poor conditions. According to the prosecutors, many workers shared small spaces, some slept on beds with no mattresses, and there was one toilet for every 31 people in one housing area.
Some had to wake up as early as 4 a.m. to use the bathroom before going to work. The workers also had to store their food next to personal items due to a lack of space.
⚖️🇧🇷 Brazil Sues BYD Over Alleged Forced Labor, Seeks $45M
— PiQ (@PiQSuite) May 27, 2025
Prosecutors accuse BYD of human trafficking and slavery-like conditions, demanding 257M reais in damages.
The case targets the Chinese EV giant and two other firms in a public civil action. pic.twitter.com/usNRtox8V7
BYD Workers Slept Without Mattresses, Had Few Toilets
"These working conditions were extremely degrading," the prosecutors' office stated. "The workers were brought to Brazil under false promises, and the jobs they ended up doing didn't match the visas they had."
Deputy labor prosecutor Fabio Leal explained that talks with BYD and its contractors began in late December to try to reach a deal. However, no agreement was made, CNN said.
"Our lawsuit is very well-founded, with a substantial amount of evidence provided during the investigation process," Leal said.
All of the affected workers have since returned to China. If the lawsuit is successful, Leal says the companies will be responsible for proving they have paid the owed compensation. He added that a settlement could still be reached, but it would now have to go through the courts.
In response, BYD issued a statement saying it respects labor laws in Brazil and internationally, and that it has been cooperating with the investigation. The company said it would respond to the lawsuit through the legal system.
Back in December, BYD also rejected the accusations, calling them an attempt to damage the image of China and its companies.
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