BRIEF: BYD subcontractor accused of labor rights violations in Brazil

A subcontractor building a Brazilian factory for leading Chinese new energy vehicle (NEV) maker BYD Co. Ltd. (1211.HK; 002594.SZ) has been accused of serious labor rights at its construction site in Camaçari, Bahia, Brazil’s Ministry of Labor and Employment said on Monday. Media reports indicated that 163 workers were living in harsh conditions at the site.

The 163 workers were employed by China Jinjiang Construction Brazil Ltd., which provides services to BYD on an outsourced basis, financial media Caixin reported on Tuesday. Worker dormitories and parts of the construction site have since been shut down and operations suspended.

BYD told Caixin that the subcontractor failed to meet BYD’s labor standards, leading to an immediate termination of their partnership. BYD’s Brazil division also affirmed its commitment to safeguarding all rights of the subcontracted workers.

BYD has been expanding in Brazil in recent years. In July 2023, it announced a 3 billion real ($472 million) investment to build three factories in Camaçari. To date, BYD has launched 13 NEV models in the region. As of Dec. 13, BYD has sold about 70,000 NEVs in Brazil, up 290% from 2023.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here