MEXICO · TRADE AND LABOR
Key Facts
- The company: MadoBox, a box maker in Uruapan, Michoacán, in the heart of Mexico’s avocado country.
- Its statement: Layoffs followed lower avocado exports, not union activity; the company denies the US allegations.
- US action: On Monday 2 November the US asked Mexico to review alleged denial of workers’ union rights.
- Deadline: Mexico has 10 days to accept the review and 45 days from 2 November to finish it.
- Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 70.8 points (November 2026 edition).
Mexican box maker MadoBox says its layoffs followed a slump in avocado exports, not retaliation against union workers. The United States has asked Mexico to review a labor complaint against the company’s plant in Uruapan, Michoacán.
MadoBox made the statement on Thursday 5 November, three days after the US Trade Representative announced the case. The accusations are allegations, and the company denies them.
What the Mexican Box Maker Says
MadoBox says its Uruapan plant makes boxes for avocado exporters, and a fall in shipments cut the company’s income. It says some jobs lost their funding, so it cut them.
The company says it gave US authorities its accounting records and production figures to support this. No job count has been published, so the scale of the layoffs is not public.
MadoBox also says it signed its union contract only after a union proved it represented workers and a labor judge ordered the contract formalized. It says management did not impose the contract.
The company says the US trade office told it the process does not punish its trade operations, with no tariffs or cargo holds. The US announcement, however, directs the Treasury to pause the final customs accounting for goods from the plant.
What the United States Alleges
The US Trade Representative, a White House trade office, announced on Monday 2 November a request that Mexico review MadoBox workers’ union rights. It used the Rapid Response Labor Mechanism, a fast-track tool in the USMCA trade pact.
A Mexican union affiliated with the COCENA labor federation filed the petition on Wednesday 30 September. It alleges that the company arranged a union contract negotiated without workers, pressured and misled them, and fired workers for union activity.
A US labor committee found sufficient, credible evidence of a denial of rights after a 30-day review. That means enough evidence to ask for a review, not a ruling that the company broke the law.
The US also told the Treasury to suspend liquidation, the final customs accounting step, of goods from the plant. Mexico has 10 days to agree to a review, which falls about Thursday 12 November, and 45 days from 2 November to finish it.
Why the Avocado Slump Is Part of the Story
Michoacán grows more than 70% of Mexico’s avocados, and small producers there stopped work from the third week of October over low prices. Avocado prices fell by more than 30% in recent months.
Weekly exports to the United States fell about 40%, from 28,000 tons in October to 11,000 tons, according to APEAM, the growers’ and packers’ association. Our report on the restart of avocado exports covers the deal.
Agriculture Secretary Columba López announced on Wednesday 4 November that growers and packers had agreed to restart harvesting. Exports to all markets, including the United States, were due to resume on Thursday 5 November.
In Plain English, Who Is Who
The USMCA is the trade pact between the United States, Mexico and Canada, known in Mexico as the T-MEC. Its Rapid Response Labor Mechanism lets Washington ask Mexico to review a single workplace where workers’ union rights may be denied.
COCENA is a Mexican labor federation whose affiliated union filed the petition. APEAM is the association of Michoacán avocado growers and packers that tracks export volumes.
What It Means for You
Mexico is the main supplier of avocados to the United States, so a smooth restart of exports helps keep supply steady for US shoppers. The labor case is a separate matter, but it touches a supplier in the avocado chain.
Companies that import goods from the plant face a pause in final customs accounting, which can delay final duty bills. The case tests USMCA labor rules, as our reports on the yearly US trade reviews and US pressure on Mexican wages show.
What Is Not Known
It is not known how many MadoBox workers were laid off or when the layoffs took place compared with the petition. The allegations of coerced contracts and retaliatory firings are unproven.
Mexico has not yet said whether it will accept the US request for a review. It is also unclear how long the customs pause will last.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
What is MadoBox accused of?
A Mexican union alleges that MadoBox arranged a union contract without workers, pressured them, and fired workers for union activity. The company denies this and says its layoffs followed lower avocado exports.
What did the United States do about MadoBox?
On 2 November the US Trade Representative asked Mexico to review whether workers’ union rights are denied at the Uruapan plant. It also told the Treasury to suspend final customs accounting for the plant’s goods.
How long does Mexico have to respond?
Mexico has 10 days to agree to the review, which falls about 12 November. If it agrees, it has 45 days from 2 November to complete it.
Does this affect US avocado supplies?
Avocado exports from Michoacán were due to resume on 5 November after growers and packers reached a deal. The labor case does not stop shipments, according to the company.
Sources: Office of the US Trade Representative, request for review under the USMCA Rapid Response Labor Mechanism, Monday 2 November 2026; MadoBox, company statement, Thursday 5 November 2026; Mexican Agriculture Secretariat and APEAM, announcement of the avocado export restart, Wednesday 4 November 2026.
In depth
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error