Panama restaurant closures could mean 44,000 lost jobs

Restaurants across the country have closed in the face of the coronavirus crisis  and the Association of Restaurants and Related of Panama (ARAP) is preparing for a massive shutdown of food retail outlets with a loss of over 44,000 jobs.

“The Government cannot continue delaying this matter,” said Domingo de Obaldía, president of ARAP.

The restaurant sector is one of the economic activities most affected by the measure of social isolation to prevent the spread of the coronavirus in the country.

“Sales have fallen by 80%. Last weekend was disastrous. The industry is practically paralyzed, “said Obaldia.

It is estimated that in Panama City there are approximately 2,600 restaurants, 250 are members of the ARAP.

Some of the measures that business owners have applied is to reduce working hours to six hours a day, while others have decided to close.

“Those that remain open do so because with the little that goes in, it helps to maintain some liquidity to give to employees, in the event of a general closure.”

The stoppage of activities would affect approximately 39,000 thousand jobs directly and 5,000 indirectly. This includes restaurant workers, delivery , suppliers, people who provide maintenance of air conditioners, hot areas and cold rooms. However, he adds that there are companies, such as Panamanian Franchises, that maintain a workforce of 2,600 workers.

The Government must announce how it will contribute to this closure. “A worker who works only six hours has to pay rent, finances, electricity, etc; this is a chain, and therefore there must be social justice for all, ”he said.

Faced with a massive closure, he said that the most sensible thing is to apply early vacations to workers. “The idea is that, at the end of the month, vacations will be paid based on a six-hour schedule and that they will owe the workers vacation wages for when things improve.”