On Wednesday 11 June, President of the Panamanian National Assembly, Dana Castañeda, announced that they had reached an agreement with the Banana, Agricultural, and Related Business Workers’ Union (SITRAIBANA) which marks a significant step toward resolving the strike of banana workers employed by Chiquita in the Bocas de Toro province.
The strike over reforms to the Panamanian social security reforms that threatened to reduce workers’ pension entitlements, began in late April, and had seen road closures and obstructions to the export of banana boxes from the Chiquita’s plantations in Bocas del Toro. The company claim losses of nearly one hundred million as a result of the strike.
The company responded to the Panamanian courts declaring the strike illegal by closing its operations, leaving more than 7,000 workers, including administrative and agricultural workers, without jobs. In a country whose banana exports account for around 17% of their overseas sales, the company’s action threatened serious consequences for the Panamanian economy, and prompting government intervention to resolve the dispute.
Banana Link understands that the agreement proposes providing comprehensive protection to workers at banana companies and independent banana producers, with the goal of granting them fair rights and decent retirement conditions, timely medical care, and adequate pensions.
The agreement contains four key points:
1. Parliament to debate restoring pension benefits for banana workers in Law 45
According to Dana Castañeda, the board of directors of the legislative body will debate the bill that was agreed upon at the talks in Changuinola, between Sitraibana, the Minister of Labour and Labour Development, Jackeline Muñoz , and the Minister of Commerce and Industry, Julio Moltó. The law is expected to be approved, in its second and third debates, this week.
2. Union to lift all roadblocks in Bocas del Toro
Representatives of the banana union pledged to permanently lift the closure measures on the province’s public roads and guarantee free passage immediately after signing the agreement with the Assembly.
3. Proposal to restore Law 45 to be submitted to Parliament today
Dana Castañeda pledged to coordinate with the President of the Republic, José Raúl Mulino , to ensure that the proposal will enter the corresponding legislative process and begin its first debate in the Committee on Labor, Health and Social Development .
4. Leader of the Parliament to meet with Chiquita to discuss future of operations
The congresswoman also pledged to communicate with Chiquita about its intentions in the wake of the agreement with the union.
Moreover, both parties agreed on the importance of preserving jobs in the banana sector and ensuring a legal framework that protects workers’ rights without affecting the industry’s sustainability.
Francisco Smith, president of SITRAIBANA has been brief in his statements to the media. He merely stated that the workers will respect the agreement and will monitor the Assembly’s compliance.
At the time of writing, it is unknown whether Chiquita is open to talks about restarting operations.
Sources: bilyonaryo.com, laestrella.com, pbcpanama.com, panoramaeconomicopma.com, fruitnet.com
Photo: SITRAIBANA President Francisco Smith and congresswoman Dana Castañeda signing the agreement on Wednesday (Source: SITRAIBANA)
