Brazil Places BYD on ‘List of Shame’ Following Investigation into Slavery-Like Labor Conditions

Brazil’s Labor Ministry adds China’s BYD to its "list of shame" following a human trafficking scandal involving 163 workers at its Bahia manufacturing complex.

By: AXL Media

Published: Apr 7, 2026, 4:42 AM EDT

Source: CNBC

The Labor Scandal and Registry Inclusion

On Tuesday, Brazil’s Labor Ministry updated its "list of shame," a public registry of entities found to have subjected employees to conditions analogous to slavery. The inclusion of BYD (Build Your Dreams) stems from a human trafficking scandal originally reported in late 2024. Inspectors identified 163 workers, primarily Chinese nationals, who were subjected to abusive contracts and substandard living environments while working at the Industrial Complex in Camaçari. While BYD has previously denied direct knowledge of these violations, Brazilian authorities maintain that the automaker bears ultimate responsibility for the oversight of its primary contractors.

Documented Abuse and Degrading Conditions

Evidence gathered during a multi-agency raid revealed a systematic pattern of exploitation. Labor contracts reviewed by investigators required workers to surrender their passports and agree to have the majority of their wages sent directly to China. Furthermore, laborers were forced to pay a $900 deposit, refundable only after six months of continuous work. On-site inspections described "degrading conditions" where 31 workers were housed in a single residence with only one bathroom. Laborers were found sleeping without mattresses, with food and personal belongings stored directly on the ground.

Regulatory Sanctions and Financial Consequences

Being placed on the "list of shame" carries significant operational and reputational weight. While the registry does not force the closure of the Camaçari plant—which has already produced 25,000 vehicles since its inauguration—it legally bars BYD from accessing specific credit lines and loans from Brazilian state-owned and private banks. Companies typically remain on this list for a minimum of two years unless a court intervenes or a comprehensive settlement is reached with labor inspectors. While BYD signed a deal with labor prosecutors, its failure to reach a similar agreement with government inspectors led to this formal blacklisting.