Panama’s President, José Raúl Mulino, on Thursday demanded that unions lift road blockades to help facilitate an agreement that would end the strike at the Panamanian branch of U.S.-based banana company Chiquita Brands. Workers from the company, which laid off 5,000 of its 7,000 employees following a month of protests and millions in losses, continue to block roads in the Caribbean province of Bocas del Toro, which borders Costa Rica.
The unions are demanding the approval of a law to restore benefits they claim were removed in a recent pension reform. However, Mulino insists that the barricades must be lifted “permanently” before sending the bill to the National Assembly. “If the roads are not cleared, there will be no law,” he warned during his weekly press conference on Thursday.
Although the conflict is primarily with the government, Chiquita last week dismissed around 5,000 workers for “unjustified abandonment of work.” The company has also halted banana planting, packaging, and export operations, leading to losses exceeding $75 million.
Francisco Smith, a union leader representing the banana workers, rejected Mulino’s stance in an interview with Radio Panama. “He’s the president of the country — he’s the one who should bring peace,” he said. Businesses are reporting product shortages, and schools remain closed in the province. The most chaotic conditions are in Changuinola, where the U.S. subsidiary operates its plant, about 600 km northwest of Panama City.
According to Mulino, the blockades have caused “problems” with the supply of food, water, gas tanks, and agricultural products in Bocas del Toro, a region that mainly depends on banana production and tourism. Smith denied that there is a shortage and said that strikers are allowing openings for a few hours to “let goods through.”
The government declared a “state of emergency” on Tuesday to jump-start the economy in Bocas del Toro but ruled out the use of force to guarantee free passage.
