US asks Mexico to review alleged labor violations at Madobox
The U.S. trade office invoked the USMCA labor mechanism against a box factory in Uruapan and closed the Industrias Tecnos case with a memorandum.
The United States has asked Mexico to review whether Madobox, a box factory in Uruapan, Michoacán, denies its workers their rights. It is the newest case under the USMCA's Rapid Response Labor Mechanism, the procedure Washington uses to challenge plants where workers are allegedly blocked from organizing or bargaining collectively.
A union affiliated with the Confederación Central Nacional (COCENA) filed the petition on Sept. 30. The Office of the U.S. Trade Representative (USTR) names it as the national union "Generalísimo José María Morelos y Pavón." The union accuses the company of signing a collective contract without its workers, pressuring them and misleading them about their rights, and firing people for union activity.
A U.S. interagency labor committee, co-chaired by the USTR and the Labor Department, found "sufficient, credible evidence" that rights were denied. Mexico has 10 days to agree to a review and, if it does, 45 to finish it. The USTR also told the Treasury to suspend the liquidation of Madobox imports still pending. The release does not say how many people work at the plant, and Mexico has not said publicly whether it will accept.
The same day, the two governments announced a memorandum of understanding on Industrias Tecnos, a small-arms ammunition maker in Cuernavaca, Morelos. Washington had gone as far as requesting a panel over that plant in December 2024. The memorandum "details a plan to remedy violations of Mexican law at the facility."
Each side takes on tasks:
- The company: confirm that fired workers received the compensation the law requires, train all staff on a neutrality statement with zero tolerance for retaliation, and open an anonymous complaint channel.
- Mexico: review the dismissals the U.S. flagged, monitor compliance at the plant, train workers and supervisors in person, and set up an email address, a platform and a phone line for complaints.
The release does not say whether the panel request is withdrawn.
For Mexican exporters, the hold on Madobox's imports shows the mechanism can reach their shipments before any ruling. Both announcements come as the two countries prepare the joint review of the USMCA in 2027, for which the USTR opened public comment on Oct. 2. On Madobox, Mexico's 10 days are already running.
