Chiquita fires thousands of striking banana workers in Panama, says it has suffered massive losses

Banana giant Chiquita Brands has fired its workers in Panama who have been out on strike for more than three weeks as part of nationwide protests against reforms to the social security system, the company said Thursday.

Banana plantation workers in Panama remain on strike after Chiquita announced mass layoffs.

Panamanian President José Raúl Mulino had said earlier Thursday that the strike was illegal and included some 5,000 workers.

“Unfortunately, following the unjustified abandonment of work at our plantations and operations centers since April 28 and continuing today, (the company) has proceeded with the termination of all of our daily workers,” the company said in a statement. It said the company had suffered losses of at least $75 million.

Mulino, speaking at his weekly press briefing Thursday morning, had blamed the leader of the banana workers union.
“We don’t know how to talk to (union) leader Francisco Smith about the enormous damage his intransigence is causing the Bocas del Toro job sector,” Mulino said. Bocas del Toro is Panama’s westernmost province and borders Costa Rica.
The union did not immediately comment.

The root of the conflict is pension reform. On April 28, workers on the banana plantations went on strike, voicing anger over new laws passed by Panama’s Congress. The unions argue that the reforms would mean weaker retirement benefits and poorer healthcare coverage for those who spend their lives harvesting bananas.

As the standoff escalated, Mulino’s government stepped in to mediate. After tense talks, the administration agreed to present a new bill that would restore previous social benefits for banana workers on the condition that the unions lift their roadblocks. The unions, however, refused to call off their protest until the legislation is officially passed.

Protests marches and occasional roadblocks have continued, stretching from one end of the country to the other as teachers, construction workers and other unions express their rejection of government proposals.

Although Mulino has pledged to send in police to clear the roads, many routes remained blocked on Thursday and the government has airlifting food and other supplies to some locations in Bocas del Toro.
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Credit: Associated Press