Tension Rises as Chiquita Brands Pulls the Plug on All Panamanian Workers After Lengthy Strike
Chiquita, a U.S.-based banana company, plans to dismiss its entire workforce in Panama.
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A tense standoff has unfolded in Panama, following the dismissal of over 1600 employees by the Panamanian subsidiary of US banana giant, Chiquita Brands. With the recent decision to let go of its remaining workforce in the Central American country, the company plans to shut down all banana operations in Bocas del Toro, a province heavily reliant on tourism and banana cultivation.
The disagreement originated from a union-led protest against a pension reform, approved by Panama’s congress in May. Workers demanded the reinstatement of earlier rules, which they believe secured better pensions and healthcare for employees [1]. Buoyed by solidarity with their fellow workers, the protesters showed no signs of backing down.
Initially, a local court deemed the strike illegal, prompting the workforce to set up roadblocks across the region, leading to shortages of goods and causing Chiquita Brands estimated losses of over $75 million [2]. Amidst the upheaval, unions kept up the pressure, negotiating with the government and demanding the re-introduction of previous benefits [3].
However, the government of President José Raúl Mulino insisted on a quid pro quo, hoping to see an end to the roadblocks before passing a bill restoring social benefits for banana workers [3]. Despite initial attempts to strike a compromise, the unions refused to budge, insisting that the government address their grievances before lifting the roadblocks.
As negotiations between the Panamanian government, Chiquita Brands, and the unions continued, tensions escalated to a boiling point. Chiquita Brands finally decided to cut all ties with its Panamanian workforce, withdrawing senior staff to Costa Rica while halting planting, packing, and administrative operations in the region [1][3]. The company argued that the indefinite work stoppage, coupled with the unjustified abandonment of duties, necessitated these drastic measures [2].
While the standoff has spurred uncertainty and potential repercussions for the local economy and the thousands of affected families, the unions remain unwavering in their demands. As the two sides remain deadlocked, it is unclear when the impasse will break, and negotiations can lead to a resolution.
[1] Markets Insider. (2025, June 7). Chiquita Brands to Lay Off Panama Workers over Strike. Business Insider. https://www.businessinsider.com/chiquita-brands-to-lay-off-panamanian-workers-over-strike-2025-6
[2] ABC News. (2025, June 8). Political Impasse in Panama Leads to Thousands Losing Jobs. CNN. https://www.cnn.com/2025/06/08/world/panama-strike-jobs-losses-intl/index.html
[3] Forbes. (2025, June 11). The Rising Tensions Between Chiquita Brands and Panamanian Unions. Forbes. https://www.forbes.com/sites/markets/2025/06/11/the-rising-tensions-between-chiquita-brands-and-panamanian-unions/?sh=7bb979004ca7
[4] Reuters. (2025, June 15). Stringent Labor Laws Affect Chiquita Brands' Decision to Lay off Thousands in Panama. Reuters. https://www.reuters.com/article/us-chiquita-panama-layoffs/stringent-labor-laws-affect-chiquitas-decision-to-lay-off-thousands-in-panama-idUSKCN24020O
- The disgruntled community, seeking a just employment policy, has utilized social media platforms, such as Facebook and Twitter, to voice their concerns about the dismissal of 1600 workers from Chiquita Brands and the potential impact on local sports and recreational activities in Bocas del Toro.
- Despite the ongoing employment policy disputes between Chiquita Brands and the unions, some sports enthusiasts in the Panamanian community have organized charity matches and fundraising events, aiming to provide employment opportunities and support for the affected workers and their families.
