Chiquita Kicks 'Em to the Curb: US Banana Conglomerate Ousts All Panamanian Workers Amid Strike Over Pension Disputes
Chiquita, an American banana corporation, to terminate employment of all staff in Panama
In the heat of May, Chiquita, a major player in the banana game, let go of a massive chunk of harvest workers in Panama during protests against a pension reform. But that wasn't enough for the work mercenaries at Chiquita – they're now axing the rest of their workers in the country because the strike's still going strong.
The Panamanian branch of the US banana behemoth, Chiquita, is planning to fire more than 1600 employees this week, Jackeline Muñoz, Panama's Minister of Labor, confirmed. This comes after thousands of workers downed tools back in April, sparking a strike that's been ongoing ever since. The banana plantation in the Caribbean province of Bocas del Toro has been the epicenter of this trade union war. The strikers are gunning for the old pension rules that would have secured them a cushier retirement and better healthcare.
Courts in Panama ruled the strike as illegal, and Chiquita, writhing in agony from the financial blow of $75 million in losses[1], has used this verdict to justify their decision to cut loose their workforce.
Following negotiations with the unions, President José Raúl Mulino's government agreed to table a bill restoring social benefits for banana plantation workers – but only on the condition that the roadblocks are lifted. However, the unions refuse to budge until they see that bill become law[1].
By The Numbers
This mass exodus isn't just limited to seasonal workers; Chiquita is also terminating approximately 1,500 banana workers and is pulling its administrative staff out of the country too[2][4].
In Your PlateFood | Panama | Job Cuts | Dismissal | Strikes
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Reasons
Chiquita has axed workers en masse primarily due to industrial action deemed illegal by local authorities. The strike, which kicked off on April 28, 2025, was instigated by workers protesting against a pension reform penned by Panama’s Congress. The labor court subsequently ruled the strike at Chiquita’s plant illegal, justifying the dismissals based on job abandonment under the Labor Code[1][2][3].
Impact
- Mass Layoffs: Chiquita announced the dismissal of its "daily workers" – approximately 5,000 – for "unjustified abandonment of duties." These workers are usually temporary hires[1][2].
- Economic Consequences: The strike has cost Chiquita an estimated $75 million, highlighting significant operational and financial strain[1].
- Labor Relations: Union representatives have vowed to continue the strike indefinitely, signaling ongoing tension between workers and management[1].
- Subsidence of Operations: The company’s withdrawal of administrative staff and the reported cessation of operations in Panama indicate a possible long-term reduction or suspension of Chiquita’s activities in the country[2][4].
Current Status
As of early June 2025, Chiquita has shut down its operations in Panama, following the mass layoffs and the ongoing strike. The company has not only let go of seasonal and daily workers but has also begun withdrawing administrative and permanent staff, even seeking government permission to exit the country[2][4]. The strike and mass layoffs have grabbed headlines from both local authorities and international media, with labor unions showing no signs of easing up[1][3].
[1] ntv.de, lar/AFP[2] Panama News[3] The Panamanian Times[4] The Tico Times
The ongoing strike by Chiquita's employees in Panama over pension disputes has driven the US banana conglomerate to announce the firing of more than 1,600 workers, a decision that aligns with the court's ruling declaring the strike illegal. Induced by the industrial action and the financial strain amounting to $75 million in losses, Chiquita's employment policy has focused on terminating a significant portion of its workforce in the retail and finance sectors, including both seasonal and permanent staff. The impact of this move extends beyond Panama's banana industry, potentially affecting the retail and finance industries as well.
