No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

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

The Hidden Climb in Tortuguero Most Visitors Never Discover

Just beyond Tortuguero’s famous canals, Cerro Tortuguero offers a rainforest hike and one of the most impressive panoramic views on Costa Rica’s Caribbean coast.

Costa Rica Sees a Increase in Dengue and New Malaria Concerns

Costa Rica is fighting an uphill battle against two mosquito-borne diseases this year, with dengue cases climbing sharply and malaria showing signs of resurgence...

Costa Rica’s August 31 Holiday Falls on a Workday for the First Time

Monday, August 31 is a national holiday in Costa Rica. Plan for a three-day weekend, closed government offices, and a payroll question if you...

Another Tropical Wave Arrives as Costa Rica School Closures Rise Again

When will it end? Costa Rica’s recovery from this month’s flooding suffered a setback today as the number of schools without in-person classes rose...

Scientists Document a Rare Golden Ray in Costa Rica’s Northern Pacific

A small ray the color of a gold coin turned up in shallow water off Guanacaste, and researchers say nothing like it has ever...

US Demands Nicaragua Release Brooklyn Rivera’s Relatives

The United States on Monday demanded that Nicaragua’s government release relatives of Indigenous leader Brooklyn Rivera, who died in prison three months ago. Rivera,...

Canada is now the fastest growing source of tourists to Costa Rica

More Canadians are flying to Costa Rica this year than at any point on record, and the gap between them and every other market...

Costa Rica Delays Yellow Fever Vaccine Rules Until October

Costa Rica has delayed new yellow fever vaccination rules for travelers to eight countries, giving you another month to get vaccinated before the requirements...

Costa Rica Aims to Have Electric Train 80% Complete by 2030

The Costa Rican government expects the Greater Metropolitan Area (GAM) Electric Train project to be approximately 80% complete by the end of the Laura...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

đź”’ Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

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