Chiquita's Move to Sack Remaining Employees in Panama After Dispute
Chiquita, a US banana company, announced plans to terminate the employment of all its workers in Panama.
After a heated, protracted labor dispute over a pension reform, the Panamanian division of US-based banana conglomerate Chiquita is moving to sack more than 1600 of its remaining workers in the country.
The fuss began in April when workers at Chiquita's plant in the Caribbean province of Bocas del Toro went on strike in protest of a pension reform passed by Congress. The unrest continued for over a month, with Chiquita eventually dismissing around 5,000 employees for "unjustified absenteeism."
The unions tied to the strikers demand the reintroduction of previous pension rules, contending that these would secure better pension benefits and healthcare for workers. However, a court in Panama declared the strike illegal, leading to roadblocks and a shortage of goods that caused losses of at least $75 million for Chiquita.
President José Raúl Mulino's government agreed to submit a bill restoring lost social benefits for banana plantation workers, but only on the condition that they lift the roadblocks. Despite this, the unions have thus far refused to do so, citing the need for the bill's passage before any blockades are lifted.
In light of the ongoing dispute and the significant losses incurred, Chiquita has announced its intention to cut its labor force further. The decision comes after weeks of negotiations with union leaders and the government's call to lift the roadblocks before any legislative action can be taken.
The unrest and subsequent dismissals have disrupted not only Chiquita's operations but also the broader regional economy and society. Banana production has suffered "irreversible damage" as a result of the strike, causing road blockages and leading to fuel and food shortages. Schools have been closed, necessitating a state of emergency declaration in Bocas del Toro to expedite economic recovery.
Despite the ongoing tension between the government, unions, and Chiquita, a resolution seems far from clear. Chiquita's relocation of its management team to Costa Rica and planned layoffs of the remaining workers in Panama signal a significant shift in the company's operations in the region, portending long-term economic and social consequences.
The ongoing dispute between Chiquita and its workers over pension reform has led to an industry-wide disruption, affecting not only Chiquita's employment policy but also the finance, retail, and overall business sectors in Panama and the broader region. The company's decision to sack more than 1600 employees and relocate its management team to Costa Rica could have long-term implications for employment policies in the banana industry.
