HomeArchiveBillion-dollar Panama Canal expansion halted due to labor strike

Billion-dollar Panama Canal expansion halted due to labor strike

PANAMA CITY – Thousands of workers at the site of a major expansion project on the Panama Canal have stopped work to demand payment of back wages and better working conditions, according to their union.

“Work is completely paralyzed, on the Pacific and the Atlantic side,” Saul Mendez, head of the National Union of Workers in Construction and Allied Industries, the largest in the country, told AFP on Monday.

The canal cutting through Central America is currently undergoing a major $5.25-billion project to expand its choked capacity, set to be completed in 2014, which will allow some of the world’s largest ships to pass through.

The vital waterway handles five percent of world trade annually, and has hosted more than one million vessels since it was inaugurated in 1914. The United States handed over control of the canal to Panama on December 31, 1999.

The largest element of the expansion project is the $3.2 billion building of a third set of locks by the United Group, a consortium of Spain’s Sacyr, Italy’s Impregilo, Belgium’s Jan de Nul and Panama’s Constructora Urbana.

The union is demanding that the consortium pay back wages as well as raise the minimum wage of thousands of workers on the site, according to Mendez, who also accused foreign foremen of abusing Panamanian workers.

Workers staged protests throughout the day that included burning tires.

The United Group denied the allegations, saying in a statement that it “fully complies with the pay and working conditions”agreed upon with the workers and that it is “very respectful of Panamanian regulations.”

It added, however, that there had been “errors in the incorporation of data” on the part of a local contractor that distributes wages and said the consortium is working on fixing the problems.

The consortium said it pays the minimum legal wage of $2.90 per hour for canal workers, which is higher than in the rest of the country.

The expansion work has been slowed by labor disputes in the past, including in November 2010, when work was paralyzed for several days.

The canal generated a record $1 billion for Panama in the fiscal year 2010-2011, for a total of $6.6 billion since the United States handed over control more than a decade ago.

Trending Now

Panama Canal Sets Cargo Record Amid Hormuz Closure Despite El Niño

The Panama Canal handled a record volume of cargo, driven by the closure of the Strait of Hormuz in the Middle East, despite traffic...

Costa Rica Gives SINPE MĂłvil Businesses 12 Months to Register Payment Numbers or Face Fines

If you get paid through SINPE MĂłvil for a business, a rental or freelance work in Costa Rica, you will soon have to tell...

Costa Rica’s Licensed Taxi Fleet Has Shrunk by Nearly Half Since Uber Arrived

Costa Rica's licensed taxi fleet has fallen to roughly half its original size, according to taxi industry representatives, who say about 6,800 drivers remain...

Costa Rica Farmer Olga Vargas Named Among FAO’s 100 Women Heroes

Olga Vargas, a farmer who grows guavas and raises tilapia in southern Costa Rica, has been named among 100 women recognized by the United...

Costa Rica Mayor Investigated in Guanacaste Beachfront Hotel Permit Scandal

Costa Rican prosecutors are investigating the mayor of Santa Cruz, his son and seven others over suspected irregularities involving beachfront hotel construction permits and coastal land concessions in Guanacaste.

Planned US Embassy Visit Leads to Arrest of Man Wanted in Georgia

A man wanted in Georgia was detained in Costa Rica after US authorities flagged a planned visit to the US Embassy.

Will Costa Rica’s New Megaprison Make Life Safer?

Leave it to the Frente Amplio (Broad Front) political party to spoil the fiesta. Our sparkling new 34 million dollar megaprison was all ready...

Costa Rica’s First Cold Push of the Season Brings Stronger Winds and Rain

Costa Rica is beginning to feel the effects of the first cold push of the season, bringing stronger winds to Guanacaste and the Central...

Thousands of European Investors Fear Losses as Costa Rica Teak Scheme Collapses

More than 6,000 Europeans paid about 200 million Swiss francs for teak trees on 60 Costa Rica plantations. The seller is bankrupt and Swiss prosecutors are investigating.
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel