Workers at U.S.-based banana company Chiquita Brands in Panama ended their protests and road blockades on Wednesday after reaching an agreement over pension reforms. The workers had gone on strike on April 28, blocking roads in the Caribbean province of Bocas del Toro, which borders Costa Rica, in response to a pension reform that removed some of their previous benefits.
Bananas accounted for 17.5% of Panama’s exports during the first quarter of this year, according to the Ministry of Commerce and Industry. With more than 100,000 residents, Bocas del Toro relies primarily on tourism and banana production, the country’s top export following the court-ordered closure of a copper mine in 2023.
Unions “committed to permanently lifting the roadblocks and ensuring free transit in the province of Bocas del Toro immediately,” said National Assembly President Dana Castañeda, reading from an agreement reached after two days of negotiations. The Assembly’s board and parliamentary leaders also pledged to pass a bill, supported by the right-wing government of President José Raúl Mulino, to allow early retirement and other benefits for banana workers.
“Banana workers are exposed to chronic risk factors, including daily contact with agrochemicals, forced postures, extreme climates, and repetitive tasks, which accelerate health deterioration and reduce their productive capacity,” said Labor Minister Jackeline Muñoz, presenting the new legislation to the Assembly. President Mulino had previously promised to present a bill restoring worker benefits if the roadblocks were lifted.
Uncertainty for Dismissed Workers
The agreement also calls for Castañeda to “establish communication” with Chiquita to “learn the current status and future outlook of the company and its workers. “The company said that it will not comment “at this time.” During the strike, Chiquita halted operations and dismissed more than 6,500 workers. The company reported losses exceeding $75 million, though local media estimate the damage at over $100 million.
Sources close to the negotiations said that unions are also seeking agreements with both the company and the Panamanian government to reinstate dismissed workers. Minister Muñoz recently stated that there is now “not a single worker left on Chiquita’s payroll.” Bocas del Toro Chamber of Commerce President Aris Pimentel said that it’s “very unlikely” the company will resume operations in the short term after the protests.
The government “will need to absorb some of the company’s losses to make it reconsider returning,” Pimentel added.
Let There Be Peace
Union leader Francisco Smith said the workers are reopening roads “so there can be peace” in Changuinola, the town in Bocas del Toro where Chiquita’s plant is located. Smith added that the new law is expected to take effect “between Friday and Saturday.” “It will benefit many banana workers,” he said.
The strike, declared illegal by a labor court, disrupted all activity in Bocas del Toro. Pimentel estimated losses in the province at “several hundred million dollars,” noting that over 20,000 people rely on banana-related work. The agreement “is a big step” because the situation “was very complicated,” Pimentel concluded, though the road to recovery remains “long.”
