BYD in turmoil after slavery accusations in Brazil

A scandal has erupted on the construction site of BYD’s Brazilian factory in the state of Bahia.

During a visit to the massive site of BYD’s first factory outside China, Brazilian authorities discovered that 163 Chinese workers were employed under conditions described as degrading, or even “close to slavery.” These employees, recruited by a third-party company in China, were also brought to Brazil irregularly.

On the site, they worked seven days a week, well beyond legal limits, under conditions deemed degrading. Some had their passports confiscated and had to request permission to leave their accommodations, while security on the site was inadequate. Practices that not only violate Brazilian laws but also violate all international standards regarding labor.

BYD quickly condemned these abuses in a statement and announced the termination of its contract with the recruiting company. The company also assured it was cooperating with local authorities and supporting the affected workers. Note that although the justice system had not released the name of the company involved in this scandal, BYD did not hesitate to do so!

At this level, the name and nationality of the accused builder and subcontractor are irrelevant because this specific case reveals a more global problem. This incident highlights all the challenges of a strong commitment by stakeholders in the energy transition concerning corporate social responsibility (CSR). In the pursuit of ever lower costs, it is easy to forget that behind every object are hands. While BYD sought to strengthen its presence in Latin America, the manufacturer faces a halt in construction of its factory and a seriously tarnished image. All while waiting for inevitable and deserved financial sanctions. In the eye of the storm, BYD must now redouble its efforts to regain the trust of authorities and consumers while ensuring such violations do not happen again.

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