Bocas del Toro, Panama – The Panamanian government has declared a state of emergency in Bocas del Toro province after striking workers blocked key roads, leading to severe fuel and food shortages. The unrest stems from mass layoffs by a Chiquita Brands subsidiary following a costly labor dispute that has paralyzed local operations.

Roadblocks and Supply Shortages

Protesters, primarily members of the Banana Industry Workers Union (Sitraibana), have barricaded highways in the province bordering Costa Rica, disrupting transportation and commerce. The blockades have triggered fuel shortages and limited access to essential goods, while schools remain closed as a precaution.

President José Raúl Mulino has urged union members to lift the roadblocks, emphasizing the need for dialogue. Meanwhile, Chiquita Panama, a major employer in the region, announced the indefinite suspension of all operations in Bocas del Toro, citing unsustainable losses.

Mass Layoffs and Economic Fallout

Last week, Chiquita dismissed 5,000 workers—nearly 70% of its local workforce—at its Changuinola plant, accusing them of “unjustified abandonment of duties” amid the strike. The company claims the labor action has caused “irreversible damage” to banana production due to neglected plantations.

With planting, packing, and export activities halted, Chiquita estimates losses exceeding $75 million. The strike, deemed “illegal” by a labor court, has also jeopardized thousands of additional jobs, according to President Mulino.

Government Seeks Resolution

A government delegation, led by Minister of the Presidency Juan Carlos Orillac, is negotiating with union leaders. Workers demand legislative reforms to reinstate benefits they say were guaranteed under the previous pension and healthcare systems.

Orillac stated, “We are engaging with those blocking the roads to find a solution within the government’s capacity.” However, with tensions high and economic losses mounting, the crisis threatens to deepen unless a compromise is reached soon.

Broader Implications

The strike highlights ongoing labor tensions in Panama’s agricultural sector, where multinational companies like Chiquita play a pivotal role. As the standoff continues, residents face growing hardships, and businesses warn of long-term repercussions for the regional economy.

Authorities are monitoring the situation closely, balancing enforcement with efforts to mediate a resolution before further disruptions occur.

—Reporting by Arabfields