Strikers are blocking roads in Bocas del Toro and causing shortages of fuel and food

The government of Panama has declared a state of emergency in the province of Bocas del Toro where a subsidiary of Chiquita Brands laid off about 5,000 workers following a strike that has caused millions in losses.

Chiquita Panama

Strikers have been protesting and blocking roads in the province, which borders Costa Rica, causing shortages of fuel and some food items. Schools are also closed.

President José Raúl Mulino called on members of the Banana Industry Workers Union (Sitraibana) to reopen the roads in the area.

On Monday, Chiquita Panama announced the indefinite suspension of all its activities in Bocas del Toro due to the strike.

Chiquita, which employed over 7,000 workers, laid off the 5,000 employees last week for “unjustified abandonment of duties” at its Changuinola plant in Bocas del Toro. The company says the strike has caused “irreversible damage to banana production” due to the “complete abandonment” of the plantations.

It has suspended planting, packing, and exporting bananas, as well as administrative operations, with estimated losses exceeding US$75mn.

The Minister of the presidency, Juan Carlos Orillac, said: “We are going to try to talk to those blocking the roads and obviously try to bring them a solution, as much as the government can”.

President Mulino warned last week that thousands of jobs would be lost if the strike continued, which a labour court deemed “illegal.” A government delegation is in talks with union leaders, who are calling for a new law to restore benefits they say were provided under the previous pension and healthcare system.