Brazil’s Ministry of Labour and Employment has officially added Chinese electric vehicle manufacturer BYD to a government blacklist due to alleged slave-like labor conditions. The decision stems from a 2024 incident at BYD’s construction site in Bahia, where workers were reportedly subjected to human trafficking and abusive contracts. This listing carries significant reputational and financial risks for BYD in Brazil, its largest market outside of China.
Brazil’s Ministry of Labour and Employment has updated its Cadastro de Empregadores, commonly known as the “dirty list,” adding 169 employers in its latest semi-annual revision. BYD Auto do Brasil Ltda. was included after an administrative process concluded following a December 2024 rescue operation at the company’s factory construction site in Camaçari, Bahia.
An investigation revealed that Chinese workers at the BYD construction site were allegedly made to work seven days a week, including public holidays, with days off only granted due to the impending inspection. Inspectors found workers living in overcrowded accommodations without mattresses, with one house accommodating 31 workers sharing a single bathroom. Food was reportedly piled on the floor next to personal belongings, conditions described as “degrading.”
A labor contract reviewed by Reuters indicated that Chinese workers hired by BYD’s contractor, Jinjiang Group, were required to surrender their passports, have most of their wages sent directly to China, and pay a nearly $900 deposit refundable only after six months of work.
Being placed on the “dirty list” means BYD will have limited access to state financing and faces increased reputational risks in Brazil. While the listing does not directly affect plant operations, it blocks the company from accessing certain types of loans from Brazilian banks. Companies can be removed from the list if they sign an agreement with the government to change their practices and compensate affected workers. BYD has signed an agreement with labor prosecutors but not with labor inspectors.
BYD has previously stated it was unaware of any violations until Brazilian media reports surfaced in late November. Jinjiang Group, the contractor responsible for recruiting the workers, has denied the allegations. Despite the controversy, BYD’s plant in Camaçari has since been inaugurated and has produced over 25,000 vehicles, with Brazilian President Luiz Inacio Lula da Silva attending the inauguration, signaling strengthening ties between Brazil and China.