Chiquita Panama, a subsidiary of the U.S. multinational Chiquita Brands, announced on Monday the indefinite suspension of all its activities in the Panamanian province of Bocas del Toro due to the strike its workers have been on since April 28.
In a statement, the company said that it was stopping its planting, packaging, export, and administrative processes until further notice. According to Chiquita, the strike is "unjustified" and the workers have "completely abandoned" the banana plantations, constituting a force majeure beyond its control.
The company claims to have accumulated losses of more than 75 million dollars as a result of the interruption of its operations, in the framework of a strike that joins the teachers' and workers' unions' mobilizations rejecting several government measures, including a proposed reform of the social security system.
"The company regrets the negative impact on hundreds of families, local businesses, and other links in the value chain that directly depend on the stable development of the banana industry in Bocas del Toro," the company stated.
Last week, Chiquita Panama announced the dismissal of nearly 5,000 workers involved in the strike, following the breakdown of negotiations between the government and the union, and after warning that the abandonment of the farms had caused "irreversible damage to production."
Meanwhile, in Costa Rica, the Government celebrated the return of Chiquita as a customer of the state port in the Caribbean, following the arrival of a ship with import and export cargo. The company had already operated at the dock in previous years.
Chiquita currently controls 90% of Panama's banana production. According to official figures, this product remained the country's main export item in the first quarter of 2024, with sales of 324.4 million dollars, the highest value recorded in the last fifteen years and equivalent to 17.5% of total exports.
Social protests in Panama, which began more than a month ago, have included intermittent marches and blockades, some with clashes between protesters and law enforcement. The most critical situation is in Bocas del Toro, a region bordering Costa Rica, whose economy depends heavily on tourism and the banana sector. Given the aggravation of the conflict, the government of José Raúl Mulino is evaluating the possibility of declaring a state of emergency in the area.
Source: efe.com
