Amid Canada’s reduced tariffs and increased importation of electric vehicles from China, a forthcoming report from labor rights investigators in New York is alleging instances of forced labor at BYD, the world’s leading electric vehicle manufacturer. Last fall, China Labor Watch (CLW) received a complaint from a migrant worker in Hungary, brought from China to assist in constructing BYD’s first European plant in Szeged. This $6 billion investment aims to supply 300,000 vehicles annually to the European market.
CLW conducted interviews with 50 workers, focusing on construction and installation laborers engaged through subcontractors or intermediaries. The investigation unveiled potential violations of Hungarian labor and migration laws, including mandatory seven-day workweeks without rest days, prolonged shifts up to 12 or 14 hours with insufficient breaks, delayed wage payments of up to three months, exorbitant recruitment fees leading to debt bondage, and improper visa arrangements leaving workers vulnerable to exploitation.
BYD has not responded to media requests for comments on the allegations. The report also highlights complex subcontracting structures that obscure accountability for poor working conditions, potentially enabling BYD to evade responsibility.
These findings follow previous scrutiny of BYD’s labor practices in Brazil and ongoing investigations into its Chinese factories. Concerns have been raised about the implications of importing BYD vehicles into Canada, particularly in light of the country’s commitment to combat forced labor in line with international standards.
Despite these allegations, BYD is reportedly eyeing expansion into the Canadian market, raising concerns about potential forced labor risks associated with its products. The Chinese Embassy in Ottawa has dismissed claims of forced labor in Chinese supply chains as unfounded, attributing them to anti-China sentiments.
The U.S. maintains significant tariffs on electric vehicle imports from China, contrasting Canada’s recent tariff reductions. This discrepancy has prompted assessments of Canada’s enforcement of laws prohibiting goods made with forced labor. The country faces potential tariffs if found non-compliant.
Canadian authorities have intercepted shipments of automotive parts from China due to forced labor concerns, exemplifying vigilance in enforcing supply chain integrity. Finance Minister François-Philippe Champagne’s recent discussions with Chinese officials underscore Canada’s commitment to addressing forced labor issues in global trade.