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HomeCentral AmericaEl SalvadorPanama’s President Pushes for Chiquita’s Return After Massive Layoffs

Panama’s President Pushes for Chiquita’s Return After Massive Layoffs

Panama’s President José Raúl Mulino pledged on Wednesday to do everything possible to convince U.S. banana giant Chiquita Brands to resume operations in the country, after the company shut down during a strike and protests that caused it millions in losses. Chiquita ceased operations and laid off about 7,000 workers at its Changuinola plant in the Caribbean province of Bocas del Toro amid a labor strike that the company claims resulted in over $75 million in losses.

After the protests ended in late June, the dismissed workers urged the company to return to Bocas del Toro, a region of over 100,000 residents that relies heavily on tourism and banana production. “Believe me, whatever is within our power to make it happen will be done,” Mulino told reporters when asked what efforts the government was making to bring Chiquita back to Panama.

The president explained that Minister of Commerce and Industries Julio Moltó is “handling it directly,” though he clarified that the decision to return rests entirely with Chiquita and not the government. “To my knowledge, there is still no final position on the matter, other than the fact that they left,” said Mulino.

Bananas, Panama’s top export, accounted for 17.5% of foreign sales in the first quarter of this year, according to official data. On June 12, Mulino had stated he had “no intention” of facilitating the company’s return, “much less paying them” for their losses.

Chiquita workers went on strike on April 28 in protest of pension reforms that eliminated certain benefits, which were later reinstated after an agreement with the government. During the protests, which included road blockades at more than 40 points, Bocas del Toro experienced shortages of basic goods.

“Workers are desperate because those who worked at Chiquita depended on daily wages,” said Héctor Palacio, who lost his job after 14 years with the company. “The situation is very hard for us,” added Arcelio Valencia, another former Chiquita employee.

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