Chiquita Brands Resumes Operations in Panama After Strikes

PANAMA CITY (AP) — In a significant development for the banana industry in Panama, President José Raúl Mulino has signed an agreement with Chiquita Brands to resume operations in the country. This agreement comes several months after the company made headlines by terminating thousands of workers during a strike that halted its activities.

Background on the Strike

The labor strike initiated by Chiquita banana workers in the Western province of Bocas del Toro began in March as part of a broader movement across various labor sectors. The strikers were protesting proposed changes to the social security system, prompting President Mulino to declare the strike illegal.

Impact of the Strike

In May, Chiquita made a controversial decision to fire thousands of workers, stating that the ongoing strike had resulted in a financial loss of approximately $75 million for the company. This move not only affected workers but also raised concerns about the company’s future operations in Panama.

Agreement Details

Under the newly signed agreement, which took place in Brazil, Chiquita has committed to rehiring 3,000 workers in a phased approach. This process will be followed by the reintegration of an additional 2,000 workers, signaling a gradual return to normalcy for both the company and its workforce.

Future Outlook

The Panamanian government aims for Chiquita to achieve full operational status by February 2026, as stated in an official release. This timeline is crucial for the local economy, which heavily relies on the banana export sector.

This agreement marks a pivotal moment in the ongoing relationship between labor, government, and corporations in Panama, highlighting both the challenges and essential dialogues necessary for resolution.