Cold shoulder for Varela strike ploy

PRESIDENT Varela’s attempt at pressuring the construction industry union (Suntracs) and the employers association (Capac) to move from the negotiating table to arbitration received a cold shoulder from both sides and from Panama’s, Chamber of Commerce, and Industry (Cciap) on Friday, May 11.

The Chamber offered its supporter to the negotiating parties so they can reach an agreement but “without time limitations or the pressure of an arbitration”.

The Chamber’s announcement came after the president on Thursday called on Suntracs to seek arbitration and to return to work on May 15 if no pact is reached with the Capac during the weekend.

“We recognize the Executive’s concern about the economic cost and the delays in public works caused by this strike. However, in the last 40 years, Capac and Suntracs have negotiated successfully more than 10 collective agreements, this is why that construction workers have the best salaries and the industry the highest profits in Latin America, “said Gabriel Barletta, president of Cciap.

Some 260 construction projects have been paralyzed since April 18 including  the expansion of Tocumen airport and  Metro line 2,  projects important to President Varela who, in January 2019 will be set to welcome Pope Francis and hundreds of thousands of pilgrims for  World Youth Day.  if they are not finished in the time it could cast a shadow on the event.  and the president’s swan song, when Panama will be under the world spotlight

Barletta pointed out that only the Suntracs is entitled to request arbitration.

“If this happens [, we urge the government and the parties to assign arbitrators with ample knowledge in solving labor conflicts, and that can correctly interpret the parameters economic conditions and the current situation of the construction sector, ” he said.

Union leader Genaro López has said that the Suntracs would not be interested in requesting arbitration as it always comes down on the side of the employers.

Meanwhile, Capac says that its determination is to continue negotiating directly with the union.

Cciap stressed that the result of the collective agreement will have repercussions for most sectors of the economy and population. Therefore, “it urges the government to review the incentives for homes in the preferential interest program so that the impact of the increase does not affect the purchasing power of citizens “.