Brazil has placed China’s BYD on its official “list of shame” of employers accused of using slavery-like labour conditions, following a 2024 scandal involving Chinese workers linked to construction work at the company’s Brazilian project.
The list is published by Brazil’s Labor Ministry and is used to name companies found responsible for serious labour violations. Being included can damage a company’s reputation and also limits access to some loans from Brazilian banks. It does not stop BYD’s operations in Brazil.
BYD is yet to make an official comment.
The case involves 163 Chinese workers hired through contractor Jinjiang Group. Jinjiang has denied the allegations. BYD has said it only became aware of possible violations after reports appeared in Brazilian media in late 2024.
Brazilian officials say the company is still responsible because it must supervise the contractors working on its projects.
Workers were reportedly made to hand over their passports, send most of their wages to China, and pay a deposit of nearly $900 that was only refundable after six months of work, according to a labour contract seen by Reuters.
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Labour inspectors also found poor living conditions during a raid. “Thirty-one workers were crammed in a single house with only one bathroom and food piled up on the ground alongside personal belongings,” they said, describing the conditions as “degrading.”
The scandal led to international criticism and delayed construction of BYD’s plant in Brazil.
Despite this, BYD later went ahead with the factory launch, which was attended by President Luiz Inacio Lula da Silva in October. The plant has since produced more than 25,000 vehicles.
Companies can be removed from the list if they agree to improve labour practices and compensate affected workers. BYD signed an agreement with labour prosecutors, but not directly with labour inspectors.
Firms are only added after appeals are exhausted and usually remain on the list for two years unless a court removes them.