Chiquita Panama to Dismiss Nearly 5,000 Workers Amid Prolonged Strike

BOCAS DEL TORO, Panama – May 24, 2025 — Chiquita Panama has announced the termination of thousands of workers at its Bocas del Toro banana plantations, following a nearly month-long strike that has caused extensive losses and disruption to operations.

In a joint statement issued on May 22 by Chiquita Panama and its parent company, Ilara Holding, the company confirmed the dismissal of all daily workers who participated in the labor stoppage, citing what it described as an “unjustified abandonment of work” at farms and operational centers since April 28.

Affected workers have been instructed to report to the Empalme Office starting May 23, between 8:00 a.m. and 4:00 p.m., to collect their severance payments. The company emphasized that all payments will be made in accordance with Panamanian labor law, via individual nominal bank checks, and that the process will be conducted with transparency and respect.

The strike, launched by members of the Union of Workers in the Banana, Agricultural and Related Companies Industry (SITRAIBANA), was in protest of proposed reforms to Panama’s national pension system. However, a Panamanian court has since declared the walkout illegal. In a ruling by the Fifth Section of the Judicial Branch in Changuinola, the court found that the strike failed to meet the legal criteria required under Panamanian labor law.

While Chiquita has not disclosed the exact number of workers impacted, estimates suggest the company employs approximately 7,000 people in Panama. Local reports indicate that about 4,900 workers have received notice of termination.

Speaking prior to the company’s official announcement, President José Raúl Mulino addressed the situation during his weekly press conference, placing responsibility for the crisis on union leadership.

“The strike is illegal,” said President Mulino. “The company has already notified 4,900 workers of termination. The next step, as provided by the Labor Code, is dismissal with just cause.”

He added: “The company must do what is necessary to protect its operations in Bocas del Toro. This is painful, but the union’s intransigence has left no alternative. No other sector in the region provides as many jobs.”

The strike has reportedly cost Chiquita over $75 million in damages and production losses, with company representatives warning of long-term impacts on its operations in the country.