BUDAPEST: Hungarian authorities have taken action against companies involved in the construction of a BYD electric vehicle factory following allegations of labor rights violations, adding scrutiny to the Chinese automaker’s expanding operations in Europe.
The move comes after an investigation by labor rights organization China Labor Watch alleged that workers at BYD’s factory project in Szeged faced excessive working hours, limited rest days, withheld wages, and concerns about retaliation. The allegations prompted local authorities to launch an official review.
A spokesperson for the Csongrád-Csanád County Government Office said three companies connected to the factory’s construction had been sanctioned, while one company was fined. Authorities said monitoring of workplace safety and labor compliance at the site remains ongoing.
Allegations trigger official scrutiny
China Labor Watch alleged that subcontractors recruited Chinese migrant workers to help build the factory and that some employees were required to work extended schedules, including seven-day work weeks.
The labor rights group also reported concerns over workers’ ability to report workplace conditions without fear of punishment.
The findings followed separate reports earlier this year concerning labor conditions at a BYD facility in Brazil, where authorities launched investigations into worker welfare and employment practices.
Construction continues at Szeged plant
Despite the investigation, construction of the BYD factory in Szeged remains under way. Labor rights advocates say some working conditions have improved since the allegations became public.
According to China Labor Watch, some contractors have reduced working schedules from seven days a week to six and have allowed certain workers with visa-related issues to return home.
However, the organization maintains that concerns remain regarding worker protections and freedom to communicate with journalists and non-governmental organizations.
Broader focus on labor standards
Labor rights experts say the case reflects increasing attention by governments to labor practices at foreign-owned industrial projects.
Officials in Hungary have not publicly released the full findings of their investigation. However, authorities have indicated that additional enforcement measures could be taken if further violations are identified.
BYD did not publicly comment on the allegations cited in the reports.
The scrutiny comes as BYD continues its international expansion and grows its presence in the European electric vehicle market, where the Szeged facility is expected to play a key role in future production plans.
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