América Latina & Caribe

Bananas and Panama: a bond shaken by layoffs

Bananas aren’t just a tropical treat—they’re a vital part of Panama’s economy. In fact, bananas rank among the country’s top five export products. But now, this crucial sector is facing an unprecedented crisis. Chiquita’s Panamanian subsidiary has declared its intention to let go of more than 1,600 workers, following weeks of tension and turmoil (source).

Earlier in May, Chiquita had already revealed plans to dismiss roughly 4,900 employees because of ongoing labor disputes. These aren’t just numbers; they represent families, communities, and an entire way of life in Panama’s lush Caribbean province of Bocas del Toro.

The root of the conflict lies in a fierce battle over pension reform. On April 28, workers on the banana plantations went on strike, voicing their anger over new laws passed by Panama’s Congress. Their unions argue that the reforms would mean weaker retirement benefits and poorer healthcare coverage for those who spend their lives harvesting bananas under the sun.

Full Article