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

What the Caribbean Green Alert Means for Your Weekend Plans

If you are going to the Caribbean coast or the Northern Zone over the next few days, plan for rain and give yourself more...

Costa Rica Heavy Rains Cause Flooding and Travel Disruptions

Heavy rains from Tropical Wave No. 32 left flooding, overflowing rivers, landslides and road problems across several parts of Costa Rica, while forecasters warned...

Route 32 shut again with a reopening decision due this morning

Route 32 between the Central Valley and LimĂłn remained closed early Tuesday pending a MOPT inspection. What the detours look like and why the slopes keep failing.

Why Spending US Dollars in Costa Rica Can Be Surprisingly Difficult

When money is the subject, I am as old school as anybody. Cash is king in my world. The thrill, the feel of a...

Guanacaste Airport Outpaces Costa Rica’s Main Airport

Costa Rica welcomed more than 2 million international tourists during the first seven months of 2026, but the clearest sign of change was not...

Nicaragua Bishop Abelardo Mata Says He Is Well After Detention

Catholic Bishop Abelardo Mata, a critic of Nicaraguan President Daniel Ortega, said he is in good condition in an interview broadcast Wednesday by the...

Fernández Tours Flooded Limón as Pressure Builds for an Emergency Declaration

Fernández toured flooded Limón on Monday as a legislator pressed for a formal emergency declaration for the Caribbean.

Paulo Wanchope expected back at Herediano for a third spell in charge

The former Manchester City and West Ham striker is reported to be closing an agreement to take over at Herediano, a job he has held twice before. The club has not announced it.

Missing Hiker Found Alive After Four Days in Costa Rica’s Chirripó National Park

A 58-year-old Costa Rican hiker who had been missing for four days inside ChirripĂł National Park was found alive this morning, ending an extensive...
🌴 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