Chiquita Brands Dismisses Thousands of Workers Following Illegal Protests in Panama
The mass dismissal follows a month-long strike against pension reforms, with significant economic implications.
Chiquita Brands' Panamanian subsidiary has announced a mass dismissal of its daily workers, a move that comes nearly one month after a strike that has reportedly cost the company approximately US $75 million.
In a public statement, Chiquita Panamá indicated that it has regrettably terminated all daily workers due to what it called an 'unjustified abandonment of duties.' Daily workers are primarily hired for the harvest season and do not hold permanent contracts.
Since April 28, employees have been on strike to protest a pension reform that was recently passed by the Panamanian Congress.
The exact number of workers laid off has not been disclosed by the company, but Panamanian President José Raúl Mulino had previously cautioned that if the strike continued, thousands of jobs could be at risk.
On Thursday, Mulino commented on the situation, stating that a labor court had deemed the ongoing strike at Chiquita’s Changuinola plant—located near the Costa Rican border—as illegal.
He noted that the company had registered 4,900 cases of job abandonment, which he stated warranted dismissal under the Labor Code.
'The strike is illegal; the company must dismiss those responsible to keep the operation alive,' Mulino asserted.
He added, 'Believe me, it hurts.'
Chiquita's local operations employ around 7,000 individuals.
The company has indicated that the ongoing labor dispute has led to 'at least US $75 million in losses' and created 'irreversible damage to production' resulting from the 'complete abandonment' of banana plantations.
As negotiations continue between a government delegation and union representatives, the unions are advocating for a new law to restore employee benefits that they claim were guaranteed under the prior pension and health-care systems.
In Bocas del Toro, a province with significant reliance on tourism and banana farming, striking workers have organized protests and blocked roads.
As a result, some areas are experiencing fuel shortages and the closure of schools.
President Mulino remarked on the situation, expressing frustration over the 'enormous damage' caused by the unions’ stance.
In addition to the banana workers' strike, the Panamanian president is facing concurrent strikes from construction and teaching workers who are also opposing the pension reform.
In a public statement, Chiquita Panamá indicated that it has regrettably terminated all daily workers due to what it called an 'unjustified abandonment of duties.' Daily workers are primarily hired for the harvest season and do not hold permanent contracts.
Since April 28, employees have been on strike to protest a pension reform that was recently passed by the Panamanian Congress.
The exact number of workers laid off has not been disclosed by the company, but Panamanian President José Raúl Mulino had previously cautioned that if the strike continued, thousands of jobs could be at risk.
On Thursday, Mulino commented on the situation, stating that a labor court had deemed the ongoing strike at Chiquita’s Changuinola plant—located near the Costa Rican border—as illegal.
He noted that the company had registered 4,900 cases of job abandonment, which he stated warranted dismissal under the Labor Code.
'The strike is illegal; the company must dismiss those responsible to keep the operation alive,' Mulino asserted.
He added, 'Believe me, it hurts.'
Chiquita's local operations employ around 7,000 individuals.
The company has indicated that the ongoing labor dispute has led to 'at least US $75 million in losses' and created 'irreversible damage to production' resulting from the 'complete abandonment' of banana plantations.
As negotiations continue between a government delegation and union representatives, the unions are advocating for a new law to restore employee benefits that they claim were guaranteed under the prior pension and health-care systems.
In Bocas del Toro, a province with significant reliance on tourism and banana farming, striking workers have organized protests and blocked roads.
As a result, some areas are experiencing fuel shortages and the closure of schools.
President Mulino remarked on the situation, expressing frustration over the 'enormous damage' caused by the unions’ stance.
In addition to the banana workers' strike, the Panamanian president is facing concurrent strikes from construction and teaching workers who are also opposing the pension reform.
