Standard Fruit Company de Costa Rica S.A. has announced the dismissal of 412 employees from its banana farms located in the Limón province, attributing the layoffs to the rapid appreciation of the Costa Rican colón. Juan Carlos Rojas, the company's Legal Affairs Director, stated, "The reason is the abrupt appreciation of the Costa Rican colón or the exchange rate, which does not allow the agricultural activity to survive."
The company highlighted that the current exchange rate trend adversely affects the competitiveness of Costa Rican bananas, with further layoffs possible if the exchange rate situation persists or worsens. The decision has impacted all seven of the company's banana farms in the Atlantic region. "Unfortunately, due to the exchange rate and the abrupt appreciation that has taken place in Costa Rica, the agricultural sector is in a very difficult competitive situation compared to other countries, and our company had to lay off 412 people in all the banana farms we have in the Atlantic," Rojas explained.
The company assures that all affected workers received full benefits, emphasizing the layoffs were a necessary measure for the survival of their operations. While there has been no closure of farms, the company indicates that other sectors beyond banana cultivation may also face layoffs.
Source: ticotimes.net