Brazilian government blacklists Chinese automaker BYD for labour violations

RIO DE JANEIRO — Brazil's Labour Ministry has put Chinese automaker BYD on its registry of employers who have subjected workers to conditions similar to slavery, according to an official document seen by Reuters on Monday (April 6).

The document shows the world's largest electric vehicle maker has been added to the list over a December 2024 case where Brazilian authorities found around 163 Chinese workers in what they said were "slavery-like" conditions, building an auto factory in Brazil's northeastern Bahia state.

BYD did not immediately reply to a request for comment made outside of normal working hours. It has previously denied the government's claims.

Firms are only added to Brazil's so-called "dirty list" after all possibilities of appeal are exhausted at the government level. 

Beyond the substantial reputation risk the list carries, companies on it are also barred from obtaining certain types of loans from Brazilian banks but can continue to operate.

After a company is added, it stays on the list for two years, barring a court decision to remove it.

Companies can avoid being included by signing a deal with the government committing to change their practices and compensate workers whose rights were abused.

BYD signed a deal with labour prosecutors over the matter, but not with the government. The plant was inaugurated in October.

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