Following a US$75m shutdown and the layoff of 6,500 workers due to labour disputes, Chiquita could restart banana production in Panama under new government-approved agreements
The government in Panama has reportedly given Minister of Commerce Julio Moltó the green light to sign agreements with Chiquita Panama and reactivate its banana activity in Bocas del Toro.
As reported by multiple local news channels, the country’s Consejo de Gabinete – its executive decision-making body – approved Resolution No 99-25 on Tuesday, which authorise the Moltó’s ministry to oversee the resumption of Chiquita’s operations.
According to Telemetro, a coordination group will be created, one that brings together various government ministries as well as the Panama Maritime Authority to ensure the the industry’s restoration is effective and transparent.
“More than the company’s return, it’s about the jobs,” Moltó commented. “Changuinola and Bocas del Toro depend on banana exports, and that’s what we have focused on recovering.”
In late May, the multinational shut down production and subsequently laid off its entire workforce following a lengthy labour dispute.
That included all of its estimated 6,500 workers, including management, who were advised them to collect their final salary payments.
As a result, the group’s business ground to a halt around Changuinola, its hub in the province of Bocas del Toro. The episode is believed to have cost the company US$75mn.
In mid-August, the Panamanian government said it was optimistic that Chiquita would resume operations in the country.
