Brazilian suspends temporary work visas for BYD

BRASILIA (Reuters) -Brazilian authorities have suspended the issuance of temporary work visas for BYD (SZ:) in the wake of accusations that some workers at a site owned by the Chinese electric vehicle producer had been victims of human trafficking, the Ministry of Foreign Affairs said on Friday.

The announcement came days after labor authorities said they found 163 Chinese workers in “slavery-like” conditions at the BYD factory construction site in the northeastern state of Bahia. The workers were employed by contractor Jinjiang Group, which has denied any wrongdoing.

Later, the authorities also said the workers were victims of human trafficking.

According to the foreign ministry, the workers entered Brazil on temporary work visas. Labor authorities had said earlier in the week that the workers had been brought to Brazil irregularly.

BYD did not immediately respond to request for comment on the ministry’s decision.

In a social media post on Thursday, which was reposted by a BYD spokesperson, Jinjiang Group rejected the Brazilian authorities’ accusations about the work conditions at the Bahia site.

The contractor said the portrayal of the workers as “enslaved” was inaccurate and that there had been translation misunderstandings.

BYD has said it plans to start production in Brazil early next year with an initial annual output 150,000 cars. Nearly one in five cars BYD sold outside China in the first 11 months of 2024 was in Brazil.

BYD and Jinjiang Group have agreed to assist and house the 163 workers in hotels until a deal to end their contracts is reached, Brazil’s Labor Prosecutor’s Office said in a statement on Thursday, after meeting representatives from both firms.