Workers of Chiquita Panama, a subsidiary of the U.S.-based Chiquita Brands, went on strike over a recent social security reform that eliminated specific healthcare and pension benefits for banana workers.
There have been intermittent marches and clashes with police after protesters blocked major roads throughout the country.
Chiquita had already announced, 11 days earlier, the dismissal of 4,900 workers and the suspension of its operations at its Changuinola production center, located in the Caribbean province of Bocas del Toro, which borders Costa Rica. The decision followed failed talks between the government and labor unions and warnings from the company about the “total abandonment” of plantations, causing irreversible production losses.
Just a day later, the Costa Rican government celebrated Chiquita’s return as a client of a state-run Caribbean port, receiving a shipment of import and export goods. Chiquita had previously used the port in past years.
State of emergency declared
On May 27, the Panamanian government declared a state of emergency in Bocas del Toro and formed a High-Level Commission comprising ministers from several departments to address the crisis.
Panamanian authorities explained that the emergency measure allows the commission to authorize exceptional contracting procedures requested by ministries for purchases and projects deemed crucial to economic recovery.
Now, the company has informed the government that it will lay off the remaining workers this week, confirmed Labor Minister Jackeline Muñoz in a press conference.
“They’re requesting authorization to terminate over 1,600 employees — not a single worker remains on the company’s payroll,” said Muñoz.
“The head of labor relations at Chiquita told us that on Friday they dismissed the last 60 administrative employees, meaning the company now has no office staff,” she added.
“It’s a heavy blow” to employment and economic recovery, she emphasized.
Economic impact
Chiquita controls 90% of Panama’s banana production, which in the first quarter of this year became the country’s top export product, accounting for 17.5% of total foreign sales and generating $324.4 million, the highest figure in the last 15 years, according to government data.
Minister Muñoz traveled to Bocas del Toro with other ministers in a last attempt to negotiate with labor leaders to end the strike and reopen blocked roads — but talks were unsuccessful.
The strike, declared illegal by a labor court, has closed several major routes in the tourism-dependent region and caused over $75 million in losses, according to Chiquita.
“There’s a general outcry to reopen the roads. Restaurants and businesses are closing. They can’t hold on any longer,” said Minister of Commerce and Industries Julio Moltó.
“The union’s response is: ‘We’ll live on the streets’ until a bill is passed to restore labor protections for the sector,” added Muñoz.
Legislative standoff and escalating unrest
After talks with union representatives, the center-right government of President José Raúl Mulino agreed to draft a bill to reinstate the workers’ benefits. However, it conditioned the submission of the bill to the National Assembly on the removal of road blockades.
Union leaders have refused to end the strike until the new law is approved, while businesses report product and fuel shortages, ATMs from state-owned banks are out of service, and schools remain closed.
For over a month, President Mulino has been facing a wave of growing protests over pension reform and other issues.
On Monday, police used tear gas to reopen several stretches of the Pan-American Highway that had been blocked by protesters with logs and stones. Local media showed footage of injuries and arrests during the clashes.
