Chiquita Panama begins mass layoff of workers

Chiquita Panama has begun to lay off thousands of workers at its Bocas del Toro farms after a 24-day strike that has cost the multinational more than US$75mn and caused irreversible damage to production.

On 22 May, Chiquita Panama and Ilara Holding issued a statement announcing that following the unjustified abandonment of work on farms in Bocas del Toro and operating centres since April 28, all daily workers have been terminated.

“Workers who find themselves in this situation must report to the Empalme Office starting 23 May, from 8:00am to 4:00pm, to withdraw their corresponding severance pay, in accordance with the law,” the statement said. “All payments will be made individually, in nominal bank checks, in compliance with current regulations and ensuring a respectful and transparent process for each case.”

Last week, the indefinite walkout – a protest over reforms to the national pension system – was declared illegal by a Panamanian court. A judge of the Fifth Section of the Judicial Branch in Changuinola, Bocas del Toro ruled that the strike by members of the Union of Workers in the Banana, Agricultural and Related Companies Industry (SITRAIBANA) does not meet “any of the requirements of a legal strike”.

Chiquita did not confirm how many workers would be affected, but it is believed to employ around 7,000 people in the country.

Hours before the statement was issued, Panamanian president José Raúl Mulino blamed the intransigence of union leaders for the ongoing strike.

Speaking during his weekly press conference, Mulino said: “The strike is illegal. They [the company] have already notified 4,900 workers to walk out. The next step, according to the Labor Code, is dismissal with just cause”.

Mulino continued: “The company will have to act accordingly, dismissing those necessary to save its operation in Bocas. Believe me, it hurts me, but this intransigence is not good,” adding that no other sector locally provided so many jobs.