Brazil removed its secretary of labor inspection, Luiz Felipe Brandao de Mello, after he added Chinese automaker BYD to a government registry of employers accused of "slavery-like" labor conditions. The dismissal, published in the official gazette, came after Mello reportedly defied Labor Minister Luiz Marinho's instruction to keep BYD off the list. A 2024 probe found 163 Chinese workers in abusive conditions at a BYD construction site; a court has since issued an injunction removing BYD from the registry while a final ruling is pending.
Brazil Fires Top Labor Inspector After He Adds BYD To 'Dirty List,' Sparking Political Clash
FILE PHOTO: BYD vehicles in the production line at the company's new electric vehicle factory at the Industrial Complex in Camacari, Bahia, Brazil, February 3, 2026. REUTERS/Rafael Martins/File Photo
RIO DE JANEIRO, April 13 (Reuters) - Brazil's secretary of labor inspection, Luiz Felipe Brandao de Mello, was removed from his post after he added Chinese electric-vehicle maker BYD to the government's registry of employers accused of subjecting workers to conditions described by authorities as "slavery-like," two people familiar with the matter told Reuters.
Order Defied
According to the sources, Mello defied an instruction from Labor Minister Luiz Marinho to exclude BYD from the so-called labor-abuse "dirty list." The sources spoke on condition of anonymity because they were not authorized to discuss internal deliberations. The dismissal was formalized in Monday's official gazette.
Accusations Of Political Interference
The national association of labor inspectors, Anafitra, condemned the firing and warned it could weaken enforcement against severe labor abuses and erode the registry's power as an accountability tool. "The dismissal of the secretary signals an escalation of political interference in labor inspections," Anafitra said in a statement.
"The dismissal of the secretary signals an escalation of political interference in labor inspections." — Anafitra
Background On BYD Case
The focus on BYD follows a 2024 investigation in which 163 Chinese workers employed by a contractor at BYD's flagship Brazilian factory site were found in conditions authorities described as "slavery-like." The revelations damaged BYD's reputation in Brazil and delayed construction for several months. BYD has previously said it was unaware of any violations until Brazilian media reports surfaced in late 2024.
Legal And Political Fallout
Under government rules the registry must be updated every six months; the most recent deadline was April 6. Sources said Marinho told Mello to hold off adding BYD without offering a technical justification. Two days later, a court granted BYD an injunction removing the company from the list while a final ruling is pending.
Companies placed on the registry face practical penalties, including restrictions on accessing certain loan facilities from Brazilian banks, which can have material financial and reputational consequences.
Broader Context
The incident highlights a broader clash between President Luiz Inacio Lula da Silva's administration and Brazil's historically independent corps of labor inspectors. Critics have accused Labor Minister Marinho of intervening in past probes to prevent high-profile firms from being listed, including a unit of meatpacker JBS.
Brazil's Labor Ministry and Mello did not immediately respond to requests for comment. Reporting by Fabio Teixeira; editing by Brad Haynes and Paul Simao.
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