Brazilian prosecutors sue China's BYD over allegations of slave-like labour conditions

Brazilian prosecutors said on Tuesday they are suing Chinese electric vehicle giant BYD and two of its contractors over allegations of using workers in slave-like labour conditions and engaging in international human trafficking.

The labour prosecutors' office in Bahia state said in a statement that they are seeking 257 million Brazilian reais (USD 50 million) in damages from BYD, China JinJiang Construction Brazil and Tecmonta Equipamentos Inteligentes.

The lawsuit stems from an investigation that led to the rescue last year of 220 Chinese workers from the construction site of BYD's new factory in the city of Camacari.

Prosecutors said the workers were brought to Brazil under false pretenses and with visas that did not match their jobs.

“Working conditions were extremely degrading. Five settlements were kept by BYD, JinJiang and Tecmonta. Some workers slept on beds without mattresses and had their personal belongings alongside with their food,” the prosecutors' office said.

“There were few bathrooms, which were not gender-assigned. In one of the settlements, there was one toilet for 31 people, forcing workers to wake up at 4 a.m. for their personal hygiene before their work.”

BYD said in a statement it is collaborating with the investigations from the start and will speak about the case during the course of the probe. It also said it respects Brazil's laws and international labour regulations.

In December, a spokesperson for the Chinese automaker objected to reports about poor conditions at the construction site in Brazil, saying the allegations were aimed at “smearing” China and Chinese brands.