Panama's National Assembly Restores Benefits for Chiquita Banana Workers
Legislative action follows prolonged protests and significant economic losses in the banana industry.
The National Assembly of Panama has approved a new labor regime intended to restore benefits for employees of the U.S.-based Chiquita Brands after over a month of protests.
The workers initially went on strike on April 28, cutting off roads in the Caribbean province of Bocas del Toro, which borders Costa Rica, following a pension reform that eliminated some of their existing benefits.
The protests concluded after the National Assembly's board members, along with party leaders, committed to pass a legislative proposal supported by the administration of President José Raúl Mulino.
The new law allows for early retirement and other benefits specifically for banana workers.
The legislation was approved with 54 votes in favor, one against, and one abstention.
The assembly noted that the law establishes a 'special regime for workers in banana companies.'
Labor Minister Jackeline Muñoz defended the bill, emphasizing that workers are exposed to 'chronic risk factors' and daily contact with agrochemicals.
In response to the protests, Chiquita Brands halted its operations and laid off over 6,500 workers from its plant in Changuinola, in Bocas del Toro.
Recent estimates indicated that the protests resulted in losses exceeding $75 million, with some local media suggesting that the total may surpass $100 million.
According to the agreement, National Assembly President Dana Castañeda will engage in discussions with Chiquita to assess the future of the dismissed workers.
However, President Mulino has ruled out negotiations regarding the reemployment of these workers, stating that there are no intentions or actions being taken to facilitate their return or to cover the company's substantial losses.
'This is a problem between the company and the union.
The government has managed the situation, but not the problem,' Mulino remarked.
Nonetheless, Aris Pimentel, President of the Bocas del Toro Chamber of Commerce, mentioned that the government 'will have to address' a portion of the banana company's losses to potentially encourage the resumption of operations in Panama.
The workers initially went on strike on April 28, cutting off roads in the Caribbean province of Bocas del Toro, which borders Costa Rica, following a pension reform that eliminated some of their existing benefits.
The protests concluded after the National Assembly's board members, along with party leaders, committed to pass a legislative proposal supported by the administration of President José Raúl Mulino.
The new law allows for early retirement and other benefits specifically for banana workers.
The legislation was approved with 54 votes in favor, one against, and one abstention.
The assembly noted that the law establishes a 'special regime for workers in banana companies.'
Labor Minister Jackeline Muñoz defended the bill, emphasizing that workers are exposed to 'chronic risk factors' and daily contact with agrochemicals.
In response to the protests, Chiquita Brands halted its operations and laid off over 6,500 workers from its plant in Changuinola, in Bocas del Toro.
Recent estimates indicated that the protests resulted in losses exceeding $75 million, with some local media suggesting that the total may surpass $100 million.
According to the agreement, National Assembly President Dana Castañeda will engage in discussions with Chiquita to assess the future of the dismissed workers.
However, President Mulino has ruled out negotiations regarding the reemployment of these workers, stating that there are no intentions or actions being taken to facilitate their return or to cover the company's substantial losses.
'This is a problem between the company and the union.
The government has managed the situation, but not the problem,' Mulino remarked.
Nonetheless, Aris Pimentel, President of the Bocas del Toro Chamber of Commerce, mentioned that the government 'will have to address' a portion of the banana company's losses to potentially encourage the resumption of operations in Panama.