US Banana Company Chiquita Announces Mass Layoffs Amid Ongoing Panama Strike

Banana giant Chiquita has announced sweeping layoffs in Panama, citing an “unjustified abandonment of work” by striking laborers, Al Jazeera reports.

The decision comes as workers continue a nationwide protest over controversial changes to the country’s social security laws.

In a statement issued Friday, the U.S.-owned company said it had terminated “all” daily laborers for failing to report to work at its plantations, adding that the strike has caused “irreversible damage” and an estimated $75 million in financial losses. Affected workers have been instructed to collect severance payments.

While the company did not disclose exact figures, Reuters reported that approximately 5,000 of Chiquita’s 6,500 workers in Panama have been laid off, citing an unnamed source.

Workers launched the strike more than a month ago, joining broader national protests against Bill 462, a law passed in March that introduces reforms to Panama’s Social Security Fund, potentially reducing future pensions. The Panamanian government has declared the strike illegal and accused labor unions of “intransigence.”

President Jose Raul Mulino defended the layoffs during a press conference Thursday, stating:

“The company will have to act accordingly, dismissing those necessary to save its operation in Bocas. Believe me, it hurts me, but this intransigence is not good.”

He described the strike as “de facto” and not legally sanctioned, thus justifying the dismissals under Panama’s labor code.

The Banana Industry Workers Union (Sitraibana), however, disputes the government’s stance. Speaking to local outlet Telemetro, union leader Francisco Smith insisted that the strike is lawful, saying, “The deputies who approved bill 462 harmed the banana sector.”

Smith confirmed that union representatives met with government officials Thursday to discuss possible amendments to the law that would protect banana workers’ interests. Nevertheless, he emphasized that the strike remains active.

Panama’s banana industry plays a key role in the national economy. In 2023, the country exported $273 million worth of bananas, ranking 13th globally, according to the Observatory of Economic Complexity.