Construction is underway on the BYD factory in Szeged, Hungary, where the Chinese auto manufacturer plans to produce 300,000 cars annually. However, the project is now mired in allegations of workers' rights abuses involving Chinese migrant workers.
Labour Violations Alleged
A New York-based rights organization, China Labor Watch (CLW), interviewed over 50 migrant workers who reported potential violations of EU labour laws. These include seven-day working weeks, recruitment-related debt, excessive overtime, and visa breaches among Chinese workers hired through subcontractors.
One anonymous Chinese worker near the construction site stated, "Some employees choose to work seven days a week, but it’s not obligatory. Only those who come from China choose to." Another colleague described living conditions as "quite harsh" and supervisors as very strict.
European Commission Aware
The European Commission confirmed it is aware of the allegations and noted that a case is pending before the Hungarian labour inspectorate. Since the CLW report, rumours have spread in Szeged about conditions, including a fatal incident in February confirmed by BYD, and several migrant workers being treated for tuberculosis, unofficially confirmed by a hospital doctor.
A BYD spokesperson confirmed a death on 14 February in a loading and crane operation by a subcontractor, stating that the circumstances are under investigation.
Local Concerns
Residents of Szeged have expressed concerns about insufficient information regarding the factory's operations and environmental impact. Zita, a 55-year-old local, said, "The first thing that comes to my mind is infrastructure changes; as far as to what extent environmental factors will be respected, how will this affect us?"
Hungary's recently ousted leader Viktor Orbán had positioned himself as China's most reliable friend in Europe, winning a presidential visit from Xi Jinping and billions in investment. However, his successor Péter Magyar has promised to review another Chinese plant in Debrecen.
Scale of Investment
The $4.5 billion BYD investment is expected to transform Szeged, with plans for 10,000 workers producing 300,000 cars annually. The construction model relying on Chinese migrant workers is being closely watched across Europe. In Zaragoza, Spain, CATL has clashed with local leaders over similar plans to deploy 2,000 Chinese workers.
Worker Recruitment Practices
Workers recruited through subcontractors reported paying fees between £860 and £2,100 for jobs, while those hired directly by BYD paid no fees. CLW called this "substantial debt bondage" and urged Hungary to strengthen inspections. It also called on BYD to eliminate recruitment fees, ensure transparent wages, and uphold legal working hours. Age discrimination was also noted, with subcontractors only hiring applicants under 52.
BYD stated it places "highest priority on the protection of labour rights and the strict compliance with Hungarian and European laws and regulations," requiring strict compliance from all contractors and subcontractors.
