Ditching the Banana Gig: Why Chiquita's Axed Their Workers in Panama
The Cause Behind the Boot
Chiquita, a prominent American banana corporation, plans to discharge all staff members in Panama.
Chiquita's sudden wave of layoffs in Panama can be traced back to a work stoppage that started on April 28, 2025. This action was part of a broader industrial unrest sparked by new social security regulations that reduced retirement benefits. The Panamanian government deemed the strike illegal, prompting the termination of workers due to "unjustified absenteeism" according to the Labor Code[1][5].
The Aftermath of the Dismissals
The strike resulted in substantial financial losses for Chiquita, estimated at $75 million[1][5]. The company let go of nearly 5,000 employees in Panama, adversely impacting the regional banana exports[4]. This decision was justified by Chiquita and the government as a necessary step to keep the operations afloat, but the strike carries on as union leaders maintain that the strike is justified due to the detrimental impact of the pension reform[1][5].
Where Things Stand Today
With Chiquita pulling out of Panama, the company has requested the government's approval to let go of all their banana industry workers in the country[2][3]. As of now, the strike persists, with the Banana Industry Workers Union vowing to continue the action indefinitely[1]. The government is pushing for the removal of roadblocks to resolve the crisis, while the union leaders remain firm and the tension lingers on[4]. Chiquita, in an additional move, has also relocated their administrative staff away from Panama, further complicating the situation[3].
References
- Associated Press. (2025, June 1). Chiquita fires more than 4,600 Panamanian workers in strike. Nbcnews.com.
- Guajardo, N. (2025, May 12). Thousands of Chiquita workers striking in Panama over pension reform. Reuters.com.
- Shelton, K. (2025, June 2). Chiquita suspending all operations in Panama. The Tico Times.
- World Bank. (n.d.). Panama. World Bank Group.
- World Health Organization. (n.d.). Guidelines on Occupational Health and Safety in Banana Plantations. World Health Organization.
- The ongoing strike in the banana industry in Panama, instigated by new social security regulations and reduced retirement benefits, is affecting various employment policies within the sector, as demonstrated by Chiquita's recent terminations under the grounds of "unjustified absenteeism."
- Amid financial losses, Chiquita's employment policy changes, and the relocation of administrative staff, the retail and finance industries may be impacted as well, given Chiquita's withdrawal from the Panamanian market, which is a significant player in the global banana trade.
