Brazil’s Secretary of Labor Inspection, Luiz Felipe Brandão de Mello, has been removed from his post following a dispute over the inclusion of the Chinese electric vehicle giant BYD on the government’s “dirty list” of companies linked to slave-like labor conditions.
According to sources familiar with the matter, Mello was fired after he ignored a direct order from Labor Minister Luiz Marinho. The Minister had reportedly instructed that BYD be kept off the registry, which tracks employers accused of subjecting workers to degrading conditions.
Key details of the controversy:
- The Allegations: BYD was added to the list following a 2024 investigation into a construction site for its new factory in Bahia. Authorities rescued 163 workers—mostly Chinese nationals—who were reportedly living in substandard conditions, working excessive hours, and facing restrictive contracts that included the withholding of passports and wages.
- Legal Tug-of-War: Shortly after BYD was added to the list on April 7, 2026, a Brazilian labor court issued an injunction to provisionally remove the automaker. The court argued that the inclusion might be illegal because the workers were technically employed by a subcontractor, not BYD directly.
- Government Friction: The dismissal of the top inspector highlights a significant internal rift within the Brazilian government. While labor auditors push for strict accountability, the administration is balancing these efforts with its strategic and economic partnership with China.
- Consequences of the List: Being named on the “dirty list” is a major blow to a company’s reputation and carries financial penalties, as many Brazilian banks are prohibited from granting loans to blacklisted firms.
BYD has denied any wrongdoing, previously stating it had no knowledge of the violations until they were reported and that it has since taken steps to ensure worker protections. The Brazilian government has not officially commented on the reasons for Mello’s termination.