US Banana Giant Chiquita Fires Thousands over Panama Strike

The government is considering declaring a state of emergency in Bocas del Toro following protests and mass layoffs at Chiquita Panama.  The measure was announced this Friday, May 23, by President Mulino, who ordered the formation of a high-level commission to address the social and economic crisis facing the region, which is dependent on the banana industry. This is an ongoing story so check back from time to time for further developments.

Mulino Appoints New Governor in Bocas del Toro Amid Closures and Protests

Marcela Madrid Guerra, pictured above, has just been appointed the new governor of the province of Bocas del Toro, following the dismissal of Eddie Ibarra on Tuesday, May 20, amid growing public discontent over the past few weeks of blockades and closures.  Madrid served as regional director of the National Council for Sustainable Development (Conades) and was a candidate for mayor of Changuinola in the last elections for the Realizando Metas (RM) party.

6,300 Pounds of Aid have been Transported to Bocas del Toro as a Humanitarian Bridge

In one week of operations on the humanitarian bridge to transport aid to the province of Bocas del Toro, 6,300 pounds of merchandise have been transported, the National Aeronaval Service (Senan) reported this Friday, May 23.  SENAN reported that, in eight days, 141 people have been mobilized, including government officials and private citizens in vulnerable situations.

Banana producer Chiquita has announced mass layoffs in Panama amid an ongoing strike.  The United States-owned banana giant said on Friday it was letting “all” daily laborers go for the “unjustified abandonment of work at our plantations”.  Workers have been on strike for more than a month, as part of nation-wide industrial action protesting new social security laws lowering pensions. The government has branded the strikes “illegal” and said the sackings are the result of workers’ “intransigence”. Chiquita said in a statement that the strike had caused “irreversible damage and at least $75 million in losses”, adding that those affected by the layoffs are required to collect severance payments. 

The company did not elaborate on the number of people affected by the decision. However, news agencies reported that about 5,000 workers out of 6,500 have lost their jobs.  Panamanian President Jose Raul Mulino, pictured above, defended Chiquita’s actions at a news conference on Thursday.  “The company will have to act accordingly, dismissing those necessary to save its operation in Bocas [a Caribbean province in Panama]. Believe me, it hurts me, but this intransigence is not good,” he said.  “The strike is illegal,” Mulino added. “The next step according to the Labor Code is dismissal with just cause because this is a de facto strike, not a legitimate strike.”  However, Francisco Smith, secretary-general of the Banana Industry Workers Union (Sitraibana), told the Panamanian television viewers on Thursday that the strike was legal because the “deputies who approved bill 462 harmed the banana sector”.

A taxi was burned to the ground after catching a burning tire blocking one of the roads in the area.  Road closures and blockades in Changuinola intensified this Friday amid the announcement by the banana company Chiquita Panama that it had initiated the layoff of more than 5,000 workers due to their unjustified abandonment of their jobs on banana farms.  This Friday, May 23, one of the blocked intersections near a Caja de Ahorros bank branch was found with a burned-out vehicle.

Passed in March, Bill 462 introduced changes to the Social Security Fund that could lead to a possible reduction in pensions. The introduction of the law led to significant anger, with unions, including banana workers, joining a national strike on April 23.  The government and Sitraibana held a preliminary meeting on Thursday to discuss amendments to the bill, which would include protections for banana farmers.  Still, Smith said, “The strike continues, we continue fighting in the streets. The strike is indefinite.”  Panama’s banana industry is a significant part of the country’s economy.  According to the Observatory of Economic Complexity, in 2023, Panama exported $273 million worth of bananas, making it the 13th largest exporter in the world.

Costa Rica Celebrates Chiquita’s Return to its Ports, while Changuinola in Bocas del Toro Remains Closed

Chiquita Brands International has resumed its port operations in Costa Rica after becoming a new client of the Atlantic Port Administration and Economic Development Board (JAPDEVA), Sucy Wing Ching, executive president of the Costa Rican entity, announced this Friday.  OFFICIAL STATEMENT: CHIQUITA COMPANY RETURNS TO OUR PORT TERMINALS. We are very excited to welcome them. Above is the arrival of the ship Italian Stream in Costa Rica.