Chiquita, a U.S. banana corporation, announces the termination of employment for all its workforce in Panama.
Get the latest scoop on the ongoing chaotic situation between the banana workers and the US giant, Chiquita, in Panama.
After a fiery protest against a pension reform law, Chiquita tossed out thousands of banana farm employees in Panama back in May. A court decision labeled the strike illegal. And guess what? The US banana player now wants to can the rest of its workforce in the country, too, as the work grinds to a halt.
Following a month-long strike, Chiquita's Panamanian branch is set to give the boot to over 1600 employees this week as perPanama's Labor Minister, Jackeline Muñoz.
The workers themselves started the strike on April 28 in the Caribbean province of Bocas del Toro. The union's uproar is against a pension reform law approved by Panama's congress that the labor unions claim strips away previously guaranteed retirement benefits and health care coverage.
The Great Banana Heist: Chiquita Fires Thousands
The unions are demanding the reestablishment of past rules for improved pensions and healthcare perks. A Panamanian court deemed the strike illegal, and the work stoppage in the tourism and banana cultivation-dependent province caused trouble with road blockades, product scarcities, and losses of at least $75 million for Chiquita.
After negotiations with the unions, President José Raúl Mulino's government consented to resubmit a bill that would secure social benefits for banana plantation workers – provided they lift the road blockades. However, the unions refuse to budge until the bill is passed.
Source: ntv.de, lar/AFP
- Panama Conflict
- Job Cuts
- Dismissals
- Strikes
- Banana Industry
Enrichment Data:
- Reason for Terminations:The Panamanian arm of Chiquita Brands abruptly terminated around 5,000 employees, primarily daily laborers, accusing them of "unjustified absenteeism" following their participation in the strike in April 28, 2025.
- The Controversial Reason for the Strike:The banana workers and their unions argue the pension reform legislation enacted by Panama's Congress had revoked previously secured benefits.
- Court's Ruling:Panama's labor court declared the strike illegal, justifying the job terminations under the Panamanian Labor Code.
- Government's Standpoint:The Panamanian government, represented by President Raúl Mulino, backed the dismissals as a necessary step to maintain business viability, threatening further job losses if the blockades and strikes persist.
- Impact:Around 5,000 of the 7,000 employees at Chiquita’s Panamanian subsidiary were let go, resulting in the halting of banana farming, packaging, and export operations, causing estimated losses surpassing $75 million. The strike and resulting road blockades in Bocas del Toro disrupted supply chains, causing shortages of food, water, gas, and agricultural products, albeit union leaders disputed the extent of these shortages. Moreover, the conflict led to school closures and product shortages in the affected region.
- Current Status:The union leaders have vowed to carry on the strike indefinitely until their demands are met, ignoring government demands to end the road blockades. Chiquita has reportedly requested permission to dismiss all remaining banana workers in Panama, hinting at increased measures if the strike persists, and has withdrawn some administrative staff from the country amidst ongoing tensions.
- The ongoing conflict between Chiquita and the banana workers in Panama, centered around employment policies and a pension reform law, has resulted in the mass dismissal of over 5,000 workers.
- This industrial dispute, happening in the heart of the banana industry, has triggered a chain reaction affecting finance, retail, and other business sectors, with potential losses surpassing $75 million for Chiquita and disruptions in supply chains, food, water, and gas supplies in the affected region.
