Chiquita Brands will resume banana exports from Panama in December 2025 as part of a phased operational restart in the province of Bocas del Toro, following the strike earlier this year that saw them close operations and laying off around 5000 workers. The strike, involving multiple unions including SITRAIBANA, was triggered by concerns over pension benefits and led to the suspension of exports from the province.
The resumption of operations follows the signing of a Memorandum of Understanding between Chiquita and Panamanian authorities in August, establishing a framework to reorganise the local banana sector. The company plans to invest an initial $30 million and hire approximately 3,000 workers in the first phase, primarily for cleaning and maintenance of the farms, and an additional 2,000 in a second phase for production.
Chiquita’s re-entry into Panama signals a potential boost for the country’s agricultural exports, particularly from the banana sector, which remains a key component of the national economy.
Unions removed from the plantations
The company emphasised that since this resumption of operations is not a “continuity of the old operation,” the plantations will no longer be staffed by workers “affiliated with any union,” but rather by personnel hired “by agricultural associations.”
Chiquita has stated that “the special laws protecting banana workers remain in effect and apply to any new employment relationship,” which includes the special pension system for workers, one of SITRAIBANA ‘s demands, and adherence to the legislation regarding the minimum wage for banana workers, as well as compensation for those laid off during a process that culminated in July.
The SITRAIBANA union has reported that it is currently conducting a general audit of the benefits and rights of workers at the Chiquita Panama company, and that according to preliminary results, after auditing 20% of the settlements, the payment of $3,359,195.71 in Seniority Bonuses was identified. However, the review also revealed a shortfall of $10,256,038.75 in severance pay that has not been paid to workers.
The trade union stated that it will continue the audit process until all the files are reviewed, with the goal of ensuring compliance with labour obligations and the protection of workers rights.
“It would be easy to conclude that Chiquita has taken advantage of the strike led by unions in other sectors to rid itself of the union that represented almost all their directly employed banana workers in the region”, commented Alistair Smith, Banana Link’s international coordinator. “At various times in history the company has been shown to be adept at engineering strikes in its 100-plus year old Panama operations precisely when prices were low in the world market. On this occasion however, it is clear that the company suffered the collateral damage in a dispute that was not of its making.
It remains to be seen whether SITRAIBANA members and future leaders can persuade Chiquita to reestablish a proper negotiating relationship that ensures all the benefits negotiated over decades can be guaranteed for all those being rehired. It would be very damaging to Chiquita’s international image if their ‘new model’ turns out to be based on reduced remuneration and rights for the people who produce their bananas.”
Sources: COLSIBA, Radio France International, Destino Panama, Fresh Fruit Portal
Photo: Creative Commons Attribution 2.0 Generic
