Key Points
— Brazil’s Ministry of Labor added BYD to the official “lista suja” (dirty list) of employers found to have subjected workers to slave-like conditions, following inspections at its Camaçari factory between December 2024 and May 2025.
— Inspectors determined BYD bore direct responsibility for the illegal entry of 471 Chinese workers, including 163 rescued from conditions of forced labor, degrading housing, and 70-hour work weeks.
— The listing blocks BYD from accessing government loans and triggers credit risk reviews at private banks—a significant consequence for a company with R$5.5 billion (~$1.07 billion) invested in Brazil and ambitions to produce 300,000 vehicles annually.
The Chinese automaker that became Brazil’s fifth-largest car brand in 2026 is now also on its most damaging labor blacklist—a juxtaposition that captures the tension at the heart of the country’s industrial ambitions.
BYD was formally added to Brazil’s slave labor registry on April 7 when the Ministry of Labor published its semi-annual update, adding 169 new employers to the “lista suja” and bringing the total to 613 names, according to Agência Brasil, Estado de Minas, and multiple Brazilian outlets. The inclusion follows inspections at BYD’s Camaçari factory site in Bahia between December 2024 and May 2025, during which labor auditors rescued 163 Chinese workers from slave-like conditions and identified 471 who had been illegally brought into the country.
Direct Responsibility, Not Subcontractor Shielding
The most consequential finding was the rejection of BYD’s defense that the workers were employed by subcontractors. Although service contracts with other companies were presented, auditors concluded that the workers were in practice subordinated directly to the automaker, establishing a formal employment relationship under Article 3 of Brazil’s Consolidated Labor Code. The inspection team found BYD bore direct responsibility for the immigration fraud used to bring the 471 workers into Brazil without proper registration—not merely a failure of oversight, but an active role in assembling the workforce.
The conditions documented were severe. Workers slept on beds without mattresses, with one bathroom per 31 people, forcing 4 a.m. wake-ups. Kitchens operated in unhygienic conditions alongside construction materials. Work shifts reached 70 hours per week with no regular rest days—one injured worker reported 25 consecutive days without a day off. Workers needed permission to leave the compound to go to a market. Inspectors also found serious safety hazards including an unguarded circular saw mounted on a workbench.
What the Listing Means
The “lista suja” is not symbolic. Companies on the registry are blocked from receiving government loans—a significant constraint for any manufacturer planning a multi-billion-real expansion—and face sales restrictions. Private banks, including those that finance auto dealerships and consumer vehicle purchases, use the list for credit risk assessments. BYD signed a R$40 million (~$7.7 million) conduct agreement with labor prosecutors in January 2026, but the monetary settlement did not prevent the registry inclusion, which is determined independently by the inspection authority.
The timing is particularly uncomfortable for BYD. The company has surged to become Brazil’s fifth-largest automaker, with the Dolphin Mini becoming the first fully electric vehicle to top the country’s retail sales chart. The Camaçari plant—built on a former Ford site with R$5.5 billion (~$1.07 billion) in announced investment and capacity for up to 300,000 vehicles annually—is the centerpiece of BYD’s Latin American expansion. Now that same plant carries a federal slave labor designation.
For international investors, the case crystallizes a recurring tension in Brazil’s development model: the state is capable of attracting large-scale industrial investment and of enforcing labor protections, but the two impulses frequently collide after the fact rather than before it. The R$257 million lawsuit filed by labor prosecutors in May 2025 remains pending. BYD, which has denied wrongdoing and accused critics of targeting Chinese brands, remains on the registry for a minimum of two years unless it successfully challenges the listing through administrative or judicial channels.
Related Coverage: 163 Workers Rescued From Slave-Like Conditions at BYD • Brazil Sues BYD Over Alleged Human Trafficking • BYD Opens Camaçari EV Plant