A task force led by Brazilian prosecutors says it has rescued 163 Chinese nationals working in “slavery-like” conditions at a construction site in northeastern Brazil, where Chinese electric vehicle company BYD is building a factory.
After Jinjiang Group, a contractor for Chinese automaker BYD (BYDDY, Financial), strongly denied accusations that there had been mistreatment at the automaker's electric vehicle (EV) factory in Brazil,
Local officials in Brazil's northeast Bahia state ... "163 workers who appeared to be in slave-like conditions with the Jinjiang company providing services for BYD". The MPT also described in a statement "an alarming situation of precariousness".
The Chinese automaker is known for using cheap labor to reduce the price of its EVs, with Brazil becoming its largest overseas market.
"Slavery-like conditions", as defined by Brazilian law, include debt bondage and work that violates human dignity. The MPT added that the situation also constitutes "forced labour", as many workers had their wages withheld and faced excessive costs for terminating their contracts. BYD said affected workers had been moved to hotels.
Construction at BYD’s new EV plant in Brazil was suddenly halted Monday after authorities found Chinese workers in “slavery-like”
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SHANGHAI/BEIJING (Reuters) -- Jinjiang Group, a contractor for Chinese electric vehicle maker BYD, said on Thursday that Brazilian authorities' portrayal of their employees as "enslaved" was inconsistent with the facts and that there were translation misunderstandings.
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Jinjiang Group denied Brazilian claims of slave-like conditions for Chinese workers at a BYD factory site, blaming translation and cultural misunderstandings, while both BYD and China investigate the issue.