Strike Rolls On: Chiquita Sacks All Employees in Panama Amidst Ongoing Labour Dispute
Chiquita, a major U.S. banana company, is terminating the employment of all its workers in Panama.
Facebook Twitter Whatsapp E-Mail Print Copy Link The protracted labor dispute at the Panamanian branch of U.S. banana titan Chiquita has culminated in the company's decision to axe all its local workforce, numbering over 1,600 employees. The move was announced this week by Panama's Labor Minister Jackeline Muñoz on Monday.
The strife brewed in late April when banana plantation workers in the coastal province of Bocas del Toro commenced a strike, orchestrated by labor unions, in protest of a recent pension reform passed by the nation's parliament. The unions demand a reversion to the previous pension rules, arguing they were more advantageous in terms of pension benefits and healthcare for workers.
A Panamanian court deeming the strike illegal acted as the catalyst for the subsequent roadblocks and supply shortages, leading to Chiquita suffering economic losses amounting to over $75 million.
Amidst these adversities, the government of President José Raúl Mujilo agreed to propose a bill that would restore welfare privileges for the banana plantation workers. However, the unconditional prerequisite for passage was the removal of road blockades—a condition the unions have so far refused to meet.
The unions insist the new regulations should be in place before clearing the roadways, maintaining blockages in excess of 30 locations within the Bocas del Toro province. As a consequence of these impasses, Chiquita has had to pause all operations, including cultivating, packing, and exporting their bananas.
Sources:
- ntv.de
- BBC News - Panama banana strike continues over pension reform
- The Tico Times - Government declares state of emergency in Bocas del Toro
- Forbes - Chiquita Announces Closure Of Panama Banana Operations
- The Guardian - Chiquita workers in Panama protest pension reform with industrial action
The ongoing labor dispute at Chiquita's Panamanian branch, centered around a contentious pension reform, led the company to implement its community policy, terminating employment for over 1,600 local workers. The financial implications of this business decision, coupled with the persisting roadblocks and supply shortages, have caused Chiquita significant economic losses exceeding $75 million.
