News in brief:
– Chiquita has laid off thousands of workers in Panama, blaming a nationwide strike over pension reforms for $75 million in losses.
– Despite government support for the dismissals, union leaders say the strike is legal and vow to continue until the controversial law is revised.
Chiquita, a giant banana company, has announced mass layoffs in Panama, citing an “unjustified abandonment of work” as workers continue a nationwide strike over controversial pension reforms.
According to an Al Jazeera report, the company confirmed that it was terminating all daily labourers at its plantations, blaming the strike for causing irreversible operational damage and an estimated $75 million in financial losses.
Workers have been on strike since April 23, protesting new social security legislation (Bill 462) that could reduce pension benefits.
While Chiquita did not specify the number of workers affected, Reuters reported that about 5,000 of the company’s 6,500 employees have been let go, referencing an unnamed source. However, severance payments have been promised to the dismissed workers.
Panama’s President Jose Raul Mulino defended the mass firings, calling the strike illegal and ‘a de facto work stoppage.’ Speaking at a news conference, he said that the company will have to act accordingly, dismissing those necessary to save its operation in Bocas [del Toro].
However, union leaders insist the strike is legal and justified. Francisco Smith, head of the Banana Industry Workers Union (Sitraibana), argued that lawmakers who passed the pension reforms harmed the sector.
“The strike continues—we are fighting in the streets. The strike is indefinite,” Smith said in a televised interview.
The dispute has disrupted operations in Panama’s banana sector, which plays a crucial role in the national economy. In 2023, Panama exported $273 million worth of bananas, ranking as the world’s 13th-largest exporter.
While talks between the government and union leaders have begun, there is no resolution in sight. Workers demand revisions to the pension law and stronger protections for the banana industry. Until then, labour unrest in Panama’s key export sector is set to continue.
