Fri May 23 11:24:24 UTC 2025: **Chiquita Announces Mass Layoffs in Panama Amid Strike Over Social Security Reforms**
**Panama City, Panama** – Banana giant Chiquita has announced the mass layoff of “all” its daily laborers in Panama due to an ongoing strike now in its second month. The company cites “unjustified abandonment of work” and “irreversible damage” totaling $75 million in losses as the reasons for the drastic measures.
The strike is part of a larger national industrial action protesting recently passed social security laws, specifically Bill 462, which could reduce pensions. The government, led by President Jose Raul Mulino, has declared the strike “illegal” and characterized the layoffs as a consequence of worker “intransigence.”
President Mulino defended Chiquita’s decision at a press conference, stating the company has “just cause” for the dismissals to “save its operation.” He acknowledged the hardship caused but emphasized the “intransigence” of the strikers.
According to Reuters, who cited an unnamed source, approximately 5,000 of Chiquita’s 6,500 workers in Panama have lost their jobs. Chiquita said affected workers will receive severance payments.
Francisco Smith, secretary-general of the Banana Industry Workers Union (Sitraibana), maintains the strike is legal, citing the harm Bill 462 inflicts on the banana sector. He stated the union will continue “fighting in the streets” and the strike is indefinite, despite preliminary meetings with the government to discuss amendments protecting banana farmers.
Panama’s banana industry is a significant economic driver, with $273 million in exports in 2023, making it the 13th largest exporter of bananas globally. The layoffs at Chiquita raise concerns about the industry’s future and the potential impact on Panama’s economy.
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