Changes to the Social Security Act spurred protests, President Jose Raul Murino called the strike “illegal” and said the company had a “just cause” for layoffs.
Banana producer Chiquita has announced a massive layoff in Panama amid ongoing strikes.
The US-owned banana giant said Friday that “all” daily workers are seeking “unfair abandonment of our plantation work.”
Workers have been on strike for more than a month as part of national industrial action to protest the new Social Security Act, which lowers pensions. The government has branded the strike “illegal” and said looting was the result of workers’ “incompatibility.”
Chiquita said in a statement that the strike “caused irreversible damage.”[and] “At least $75 million loss,” he added that those affected by the layoffs are necessary to collect retirement benefits.
The company did not elaborate on the number of people affected by the decision. However, Reuters reported that out of 6,500 people, about 5,000 workers have lost their jobs and are referring to unnamed sources.
“Vertical” or “Indeterminate” strike
Panama President Jose Raul Murino defended Chiquita’s actions at a press conference on Thursday.
“Companies must act accordingly and dismiss what is necessary to save their business in Bocas. [a Caribbean province in Panama]. Trust me, it hurts me, but this incompromise is not good,” he said.
“Strikes are illegal,” Murino added. “The next step under the labor law is not a legitimate strike, but a de facto strike, so you will be fired for good reason.”
However, Francisco Smith, executive director of the Banana Industry Workers Union (Sitraibana), told Panama’s television channel Telemetro on Thursday that the strike was legal as “delegates who approved Bill 462 hurt the banana sector.”
Bill 462, passed in March, introduced changes to the Social Security Fund that could lead to potential pension cuts.
The introduction of the law has sparked serious outrage when unions, including banana workers, joined the national strike on April 23.
The government and Citraibana held a preliminary meeting on Thursday to discuss amendments to the bill. This includes protecting banana farmers.
Still, Smith said, “The strike continues and we continue to fight on the streets… the strike is indefinite.”
Panama’s banana industry is an important part of the country’s economy.
According to the Economic Complexity Observatory in 2023, Panama exports $273 million worth of bananas, making it the 13th largest exporter in the world.
Source link
