Chiquita has confirmed the banana giant has laid off its workers in Panama and suspended operations there due to strike action.
Reports emerged earlier in May that Chiquita workers in Bocas del Toro resorted to industrial action in a dispute over social security reforms.
Go deeper with GlobalData
In response to Just Food’s request for comment on new reports that striking workers had effectively been sacked, a Chiquita spokesperson said via a statement: “Due to the continued industrial action involving several unions in Panama that also affected our facilities, Chiquita regrettably has suspended operations in that country, and subsequently let go our current employees there.
“We have done so in full compliance with our contractual obligations and the law, seeking to treat those affected with empathy and dignity for their situation.”
According to Reuters, the company attributed the job terminations to an “unjustified abandonment of work”.
A source close to Chiquita told the news agency that the dismissals would affect some 5,000 workers out of a total of 6,500 employed across the country.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe projected financial hit from the 24 days of strikes amounts to at least $75m, Reuters reported the company as saying in a statement.
In the statement provided to Just Food, Chiquita added: “Due to the resilience of our diversified supply chain, we have full confidence in our ability to fully honour all of our contracts with our customers.
“It is our hope that the Panamanian government and unions can resolve their political differences that led to this situation.”
Reuters also cited comments from Panamanian President Jose Raul Mulino, speaking at a press conference last Thursday (3 May), where he called the strike action “illegal”.
“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 said, adding that his administration was considering more regulations for the banana industry.
The strike has seen thousands of banana workers cease work as part of nationwide protests against reforms they believe will negatively affect their future pensions, reports suggested.
Earlier in May, Spanish news agency EFE said Chiquita had permanently closed one of its farms in Panama alongside additional areas equivalent to two farms in Bocas del Toro, due to the strikes.
In a statement widely shared on social media at the time, Chiquita said the country’s economy was being impacted, due to the importance of banana exports.
“International markets are already replacing exports of Panamanian bananas with products from other countries, creating a significant obstacle to recovering this space in the international market,” the company said.
