Efforts to reach a labor agreement between Panama’s government and the country’s banana workers’ union came to a halt on Sunday, leaving unresolved tensions that have fueled protests and a nationwide strike.
After years of negotiations, the government committee led by Commerce Minister Julio Moltó and Labor Minister Jackeline Muñoz was unable to find common ground with the Union of Workers in the Banana, Agricultural, and Related Companies Industry (Sitraibana).
The latest meeting, scheduled for the evening of May 19 in Bocas del Toro, ended without progress. Both government officials and union leaders exited without a resolution.
The discussions focused on Law 45, a labor regulation passed in 2017 to improve working conditions for banana sector employees. The union had submitted a proposal to strengthen this law, arguing that recent legislative changes had weakened the rights won by workers during a strike seven years ago.
Talks also included discussion of Law 462, a controversial reform related to the country’s Social Security Fund (CSS).
Union Leader Criticizes Legislative Rollbacks
Francisco Smith, general secretary of Sitraibana, said the union had delivered a formal proposal to the government commission, aiming to improve protections for workers under Law 45. Smith confirmed that the same proposal will now be presented directly to President José Raúl Mulino.
He expressed concern over the rollback of Law 45, describing it as a reversal of progress made after the 2017 strike. Smith explained that banana workers are protesting because the law that once ensured better labor rights has been overturned. According to him, the changes stripped workers of key protections.
Smith further blamed some lawmakers for the repeal, accusing them of undermining the banana sector’s achievements. As a result, he said, union members have been protesting for more than three weeks and will continue to strike until their demands are addressed.
Strike Disrupts Key Banana Exports
The ongoing strike began on April 28 and has already taken a toll on the banana industry.
Chiquita Panama, one of the country’s major exporters, announced the closure of two farms. The company cited the inability to ship products due to halted operations caused by the labor stoppage.
Smith emphasized that the strike would continue indefinitely until the government offers a response. He also expressed support for broader demonstrations across Panama opposing the recent changes to the Social Security system.
As the deadlock continues, the impact on agriculture and exports is expected to grow, placing additional pressure on the government to find a solution that addresses workers’ concerns and stabilizes the industry.
