Worker Abuse Claims Hit China’s First European EV Plant

Multilingual signs in most airports in the EU opt for English, but in Hungary, there is also Chinese. This makes it easy for migrant workers flying in to staff China’s first electric car plant in Europe. The facility is due to open in 2027 and represents a massive shift in the automotive landscape. This third language was introduced in 2019 as the recently ousted leader Viktor Orbán embarked on a partnership. He positioned himself as the most reliable friend of China within the entire European Union region for years. This strategic move won him a presidential visit from Xi Jinping and billions in Chinese car industry funds. However, the race to get the carmaker BYD factory running in Szeged is now mired in dark allegations.

A New York rights organisation, China Labor Watch, interviewed more than fifty migrant workers about these serious claims. Their findings point to a series of potential violations regarding established EU labour laws and basic human rights. These reports include incidences of seven-day working weeks and recruitment-related debt among the many Chinese workers on site. Excessive overtime and visa breaches are also noted among staff hired through various subcontractors working for the project. Some employees choose to work seven days a week, but it is not technically a formal obligation. Only those who come from China choose to work such long hours without taking any rest days off.

A Chinese man spoke anonymously while lighting a cigarette in a car park close to the BYD site. He noted that conditions inside the site are nothing out of the ordinary for a migrant worker today. His supervisors are very strict and living conditions are quite harsh for the thousands of men stationed there. The European Commission said it was aware of the allegations and a case is pending before the inspectorate. Rumours about conditions on the site have been spreading around the city since a fatal incident last February. One hospital doctor confirmed unofficially that several migrant workers have been treated for tuberculosis in the local clinic.

A London spokesperson for the Chinese car company confirmed there was a death on the fourteenth of February. This accident occurred during a loading and crane operation carried out by one of their many local subcontractors. The circumstances of the accident are currently under investigation and the exact cause has not been established yet. People in Szeged feel as if there are too many unanswered questions about how the factory actually operates. Many residents were also concerned about health risks and the environmental impact on their quiet and historic city. Zita is a local resident who feels that there was not enough information provided to the general public.

Orbán was ousted in last month’s general election and his successor, Péter Magyar, has promised a full review. He plans to look at another key Chinese plant in Hungary nearing completion three hours away in Debrecen. In that city, there is disquiet over the impact of the factory and the closure of a railway. The scale of the BYD investment in Szeged is enough to transform a country with a stagnant economy. The project involves four and a half billion dollars and aims to produce three hundred thousand cars every year. BYD plans to have about ten thousand workers but the construction model will be watched across the continent.

In the Spanish city of Zaragoza, a joint venture has already clashed with local leaders over worker plans. CATL had plans to deploy two thousand Chinese workers to build the factory instead of hiring from local pools. The company said it needed experienced technicians to build and fine-tune production lines for the new electric vehicles. However, questions remain about pressure on housing and the quality of accommodation for the many migrant workers involved. Workers in Szeged told of multiple dormitory buildings on the site which were fully occupied by many people. Six buildings held about four hundred and fifty people each with an additional thousand staff living offsite nearby.

Some staff reported working seven days a week for full monthly cycles except when heavy rain stopped them. This may violate provisions of the Hungarian labour code which sets strict ceilings on overtime for all employees. Those recruited through subcontractors also told how they had to pay fees for the chance to work there. These fees ranged between eight hundred and sixty pounds and two thousand one hundred pounds for each worker. Those hired directly by BYD paid no fees which creates a clear divide among the various staff groups. For workers from low-income regions in China, these fees may constitute a substantial form of debt bondage.

China Labor Watch has called on Hungary to strengthen inspections and enforce labour and migration laws immediately today. It also called on BYD to eliminate recruitment fees and ensure transparent wages for every single person onsite. There could also be a question of age discrimination with subcontractors only offering jobs to those under fifty-two. No formal response has been received by the incoming government but the matter has reached the European Commission. Three socialist and democrat MEPs from France, Belgium, and Hungary have raised the issue at the highest level.

A spokesperson for the commission said it was aware of the allegations relating to labour rights violations there. They added that under new proposals, fifty percent of workers would have to be from the European Union. This rule would apply to electric vehicle manufacturing to ensure local jobs are protected for all European citizens. A spokesperson for BYD said it placed highest priority on the protection of labour rights and law compliance. They required strict compliance from all relevant stakeholders including all contractors and labour providers involved in the project. The world now watches to see if these promises translate into better conditions for the migrant workers.

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