Government considering revision of labor laws

More labor troubles could be on the horizon following the announcement that the revision of labor laws in Panama is being studied.

During an economic forum Alberto Vallarino said that Minister of Labor, Alma Cortez  is studying labor reforms for sectors of continuous operation such as tourism, logistics, port and processing, that "work 24 hours a day, 7 days a week" as well as on banana plantations because the current legislation as well as increasing costs hampers administration.

 

One of the road blocks on the way to a Free Trade Agreement with the United States has been opposition from American Unions because of their concerns over existing labor laws
He cited the special law for the Panama Pacific Special Economic Area was created to promote the attraction of investors to the former Howard U.S. air base which includes a special labor regime that makes it less onerous for business.
Vallarino  also announced that the government will present a special law to revive the economy of the old banana zone of Baru, through a mechanism that will make  labor rules more flexible  and create other incentives .

Later, he told reporters that "no employer will invest in Baru", with the current employment status in the area with 3000 hectares of banana plantations, their main economic activity.
The workers’ cooperative that ran the plantations failed in its management and had left more than $30 million of debt and thousands of unemployed workers since last year.