After Mass Layoffs in Panama Former Chiquita Workers Receive Payouts
On Tuesday, Chiquita Panama and Ilara Holding began the process of paying severance pay to 1,189 former employees, as part of the liquidation process authorized by the Ministry of Labor and Workforce Development (Mitradel) for economic reasons. From early hours, former employees lined up at Chiquita’s offices in the town of Empalme, Bocas del Toro province, to receive their payments and termination documents. The office will be open until July 31st, from 8:00 a.m. to 4:00 p.m. Some of the banana company’s former employees have expressed their dissatisfaction, claiming that the amounts paid are very low and do not reflect the years of service they provided.
This group is part of the total of approximately 5,000 workers who were laid off by the subsidiary of the American multinational, after nearly two months of strikes in opposition to Law 462 of the Social Security Fund (CSS). The strike directly affected operations on banana plantations. The company reported estimated losses of $75 million and declared that it had suffered “irreversible production damage” as a result of the conflict. Despite the situation, the National Government is holding talks with the company’s executives to evaluate the possibility of resuming operations in the country.
Severance Payments to Former Employees Comply with Labor Laws Ensured by Chiquita Panama
Chiquita Panama LLC and Ilara Holdings Inc. reported that the severance checks issued to their former employees meet all the requirements established by Panamanian law, as detailed in an official statement. According to the information released, nearly 5,000 former employees who left their jobs since April 28, 2025, have already received full payment of their acquired rights, including seniority bonuses, outstanding vacation pay, and the proportional thirteenth month. Likewise, in the case of the 1,553 former employees laid off for justified economic reasons and endorsed by the Ministry of Labor and Workforce Development, the companies indicated that full payment of their benefits has been included, in addition to the compensation stipulated in Article 225 of the Labor Code. The companies also reminded former employees who have not yet picked up their severance checks that they can do so at the administrative offices in El Empalme, recommending that they do so as soon as possible to prevent the checks from expiring.
