Authorities in Brazil said that 163 Chinese workers in a factory of BYD (HKG:1211, SHE:002594) are being held as human trafficking victims, Reuters reported Dec. 27.
Brazil's Labor Prosecutor's Office said in a statement that the automobile company and contractor Jinjiang Group placed the workers in hotels until an agreement to terminate their contracts is reached. However, prosecutors did not provide details on how they led to their conclusion.
Jinjiang Group made a response, which was reposted by a BYD spokesperson on social media, denying the claims that the workers are enslaved. The company added that there were translation misunderstandings, the media outlet said.
BYD denied reports of poor working conditions, stating that the allegations were part of a smear campaign against China and its companies, ABC News reported, citing a company statement.
BYD's Hong Kong shares dropped less than 3% in recent trade.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Comments