BYD Added to Brazil’s “Dirty List” for Labor Violations
Brazil’s labor ministry recently designated BYD, the Chinese electric vehicle manufacturer, to its list of employers accused of imposing conditions akin to slave labor on workers.
In late December 2024, Brazilian authorities halted operations at a BYD factory in Kamakari City following an investigation that revealed dire conditions for 163 Chinese workers brought in for the project. These workers were reportedly living in “unstable” and “degrading” environments, facing both hazardous work conditions and inadequate living spaces.
Prosecutors discovered that these employees endured what could be classified as forced labor. Their passports were confiscated, and they had a significant portion—up to 70%—of their pay withheld. There were even threats of severe penalties if anyone attempted to resign, including the loss of unpaid wages.
Some local workers at the BYD site noted that the Chinese employees were made to work every day, holidays included. The small breaks they received seemed to coincide with anticipated visits from government inspectors.
BYD, which has grown into the largest EV manufacturer globally and enjoys strong support from the Chinese government, attributed the issues at the Kamakari facility to a contractor, Jinjiang Group, that managed labor for the construction. Jinjiang Group has denied any wrongdoing.
In May 2025, Brazil’s Public Labor Prosecutor’s Office took further action by filing a lawsuit against BYD, Jinjiang Group, and another contractor, Tecmonta, on grounds of human trafficking and slavery. They sought roughly $50 million in damages from BYD.
The Ministry of Labor announced the completion of “administrative proceedings” regarding the Kamakari investigation and confirmed that BYD’s Brazilian operations have been added to a list known as the “Cadastro de Empregadores,” or “dirty list.” This designation bars employers from hiring due to their treatment of workers resembling slavery.
This blacklisting will hinder BYD’s ability to secure certain loans from Brazilian financial institutions and could tarnish its reputation among investors. However, it won’t necessitate the cessation of its operations in Brazil.
Reportedly, BYD expressed surprise at being added to the blacklist, noting they had previously committed to rectifying their labor practices, including halting any wage withholding. Brazilian President Luiz Inacio Lula da Silva had even attended the factory’s controversial opening in October to show his support for the company.
Despite attempts to demonstrate remorse, BYD’s assurances did not suffice for the Labor Ministry, leading to the continued investigation. Once placed on the dirty list, the company is required to remain on it for at least two years unless legal intervention occurs for timely removal.
This situation emerges as a challenging moment for BYD. Although they reported significant sales growth in Brazil, selling 100,000 cars in 2025 compared to 76,000 the previous year, their market share is dwindling in China. Their latest financial report indicated a 19% drop in annual net revenue—the slowest growth rate in six years and their first loss since 2021. The company invested $1 billion into a “factory of the future” in Brazil while hoping for continued overseas sales growth to offset setbacks in their home market.
Political dynamics regarding Lula complicate matters further. With a looming re-election battle against Sen. Flavio Bolsonaro, the son of his 2022 rival, Lula—a socialist with roots as a regular worker—might find it politically unfeasible to relax regulations for large corporations embroiled in forced labor controversies.
