Banana workers at Chiquita Panama, represented by the Union of Workers in the Banana, Agricultural and Related Companies Industry (SITRAIBANA), have been on indefinite strike for over three weeks in protest over reforms to the national pension system. A strike that continues despite the company’s threats to close plantations with the loss of thousands of jobs, government intervention to prevent job losses, and the courts declaring the action illegal.
Social security reform
Enacted in March this year, Panamanian Law No. 462 paves the way for the privatisation of social security, providing financial institutions with the opportunity to profit, and a potential reduction in the pensions that contributors will receive.
The introduction of the law has led to a national strike throughout the country that began on 23 April, when teachers and other education unions came out on indefinite strike, with workers in the construction, banana, and health sectors subsequently joining the action. Strikes and demonstrations around the country have been met with police repression and threats of legal action by the government.
Chiquita suspends production
On Monday, May 12, Chiquita Panama announced the permanent suspension of production on an entire farm and on additional areas equivalent to two farms in the province of Bocas del Toro, as a result of the impacts of the strike. The company claims to have been unable to export more than 900,000 boxes of bananas due to the strike, and that international markets have already begun replacing Panamanian bananas with products from other countries.
The company has called on all its employees to return to work to protect the fruit and ensure its proper harvest, packaging, and export, and to develop a contingency plan to prevent further damage to farms and the loss of more jobs in the region.
Government talks to prevent Chiquita’s exit
Panamanian President José Raúl Mulino has stated his government’s commitment to preventing the permanent closure of Chiquita Panama’s operations in the province of Bocas del Toro with the potential loss of 7,300 jobs . On Sunday 18 May government ministers met with SITRAIBANA to discuss proposals to this end. The president stating that, if no progress is made and the company decides to leave the country, the protesters and leaders “will be out of work in just a few days.”
Francisco Smith, the union’s general secretary, confirmed that the union has provided an official response to the government proposals discussed at this meeting, which he said “they should now take to the Cabinet,” as the next step in the negotiation process. Meanwhile he affirmed that the indefinite strike in the banana sector of Bocas del Toro will continue.
Court declares strike illegal
In the latest development, on 19 May, the strike by members of SITRAIBANA was declared “illegal” by Labor Judge Alvaro Jiménez of the Fifth Section of the Judicial Branch in Changuinola, Bocas del Toro.
The ruling states that the decision is based on the fact that the strike does not meet “any of the requirements of a legal strike” and orders workers at Chiquita Panama to comply with Article 507 of the Labour Code, which establishes a legal framework for resolving strikes declared illegal, including the obligation to return to work and the consequences of not doing so.
Sources: tvn-2.com, ensegundos.com.pa, laestrella.com.pa, prensa-latina.cu, peoplesdispatch.org, metrolibre.com, instagram.com/offipanama, tiktok.com/@fuerza.activa_sitraibana
