By Andreia Lobato | 2025-02-27

RIO DE JANEIRO -- The Brazilian Ministry of Labor is set to issue at least 40 infraction reports in the coming days against Chinese firms BYD, JinJiang, AE Corp and Open for subjecting at least 163 employees to slavery-like conditions.

The workers were building a Camaçari, Bahia state, automobile plant for BYD. If completed, it will be BYD's largest facility outside China.

A Central Brasileira de Noticias (CBN) report, part of the Globo network, revealed on February 20 that these 40 infractions -- documenting serious labor violations -- far exceed the average found in similar cases.

Each violation could result in a fine ranging from $140 to $6,900.

In late December, the Ministry of Labor and the Federal Police rescued 163 workers who were found in conditions "analogous to slavery."

Authorities reported that the workers were housed in extremely precarious conditions -- sleeping without mattresses with food scattered on the floor and only one bathroom available for all.

The inspection led to a partial shutdown of construction on the site.

Ongoing situation?

CBN reviewed inspectors' documents, which detailed a range of serious violations, including the absence of safety signs, an inadequate number of drinking fountains, irregularities in worker records, excessive working hours, restrictions on workers' movement and the confiscation of passports and other documents.

The 163 workers, all Chinese nationals, had traveled to Brazil specifically for the construction project without the necessary permits to work in the country. As a result, inspectors classified the case as human trafficking.

Following the Ministry of Labor investigation, which became public, the Chinese automaker BYD terminated its contract with the construction company JinJiang, and the 163 workers involved were sent back to China.

However, inspectors noted in their reports that 349 workers were originally identified at the site and JinJiang has yet to clarify the whereabouts of the remaining 186 employees.

Investigators have not ruled out the possibility that slave labor may still be ongoing, according to CBN-reviewed documents.

The situation has prompted six additional inspections at the factory's construction sites and the workers' housing facilities.

Lack of cooperation

Two sections of the construction site remain closed as the irregularities found have yet to be corrected.

Officials involved in the investigation told CBN they were "surprised by the lack of cooperation" from the four Chinese companies the ministry was investigating.

One example they cited was the repeated submission of documents in Mandarin, without the required official Portuguese translations.

According to the officials, there were "attempts to hinder the work of the tax auditors."

The Ministry of Labor is also pushing for the four Chinese companies linked to the case -- both those involved in the construction of the factory and BYD -- to be treated as a single entity in the investigation, rather than as separate cases.

"If it is determined that the companies share management, BYD would be held directly responsible for all issues," CBN reported.

Imported labor

The agreement to construct a BYD factory in Camaçari was announced in July 2023 as a key milestone in Brazil's reindustrialization efforts and growing relationship with China.

Brazil is working to revitalize its industrial sector after a long decline.

Brazilian authorities had expected the project to generate approximately 20,000 jobs.

However, union representatives had raised concerns about irregularities before the Ministry of Labor discovered instances of slave labor at the construction site. They also questioned the decision to "import" Chinese workers rather than hire local labor.

The company directly responsible for the construction and the irregular labor contracts is JinJiang, a private Chinese construction firm based in Shenzhen, where BYD is also headquartered.

Founded in 2002, JinJiang has faced several lawsuits in China for labor violations.

Between 2018 and 2022, the company was convicted in five legal disputes over workplace accidents and injuries, in addition to being fined three times for safety violations, according to local media reports in Brazil.