Chiquita fires thousands in Panama in bid to crush ongoing labor strikes

Protests in the country over pensions changes have expanded to include demands for labor reform and criticisms of Trump

An add for Chiquita, (Photo: Chiquita Facebook page)

U.S. firm Chiquita has a checkered history in Latin America. On Thursday, it added to a long legacy of anti-labor actions in Latin America by firing more than 5,000 banana plantation workers as part of attempts to crush a nearly month-long strike that has encompassed multiple labor sectors in Panama.

Banana workers have been on strike since April 28 in the Caribbean province of Bocas del Toro, where they have blocked roads and mounted fierce protests over a Congressional law that enacts reforms on the country's national pension system.

Since April 23, union members and informal labor organizations, including construction workers, teachers, doctors, and indigenous communities, have organized nationwide protests against the reforms.

The protests have grown to include marches and demonstrations against a recent deal between President José Raúl Mulino and U.S. Secretary of Defense, Pete Hegseth, which allows the deployment of U.S. military personnel in areas near the Panama Canal.

Protests have spread in recent weeks as those on strike were joined by student organizations, urban activists, and workers at the Panamanian subsidiary of Chiquita Brands.

Protests have increasingly adopted anti-US rhetoric as Trump threatens the country, and strikes a deal to deploy troops near the Panama Canal (Photos: Social media)

Panama’s labor court, however, declared the strike by Chiquita workers as “illegal”, following criticisms by President Mulino, who in recent days formed a commission to explore the possibility of declaring a state of emergency for Bocas del Toro to “restore order.”

Potesters have blocked major transportation corridors in the country, shutting down commerce. Police have also occasionally clashed with protesters, especially at blockades.

In a public statement on Friday, Chiquita wrote, “Unfortunately, following the unjustified abandonment of work at our plantations and operations centers since April 28 and continuing today, (Chiquita) has proceeded with the termination of all of our daily workers.” The statement claims the company has suffered losses of more than $75 million.

“Workers who find themselves in this situation must report to the Empalme Office starting 23 May, from 8:00 am to 4:00 pm, to withdraw their corresponding severance pay, in accordance with the law,” continued the Banana magnate.

Panama is one of the largest exporters of bananas in the world.

Chiquita has played a leading role in the banana industry for decades. In Panama alone, it has 26 farms covering some 7,000 hectares, representing 90% of the country's production in the provinces of Bocas del Toro and Chiriquí.

Chiquita has a long history of crushing labor movements in Latin America, most famously, the “Banana Massacre” in Magdalena, Colombia, in which armed men put down a strike of more than 25,000 plantation workers.

Historical accounts differ on how many were killed, with some sources claiming over a dozen, and others that more than 70 were shot by soldiers acting on behalf of the fruit company, at the time called United Fruit Company.

United Fruit changed its name to Chiquita in 1975, after a series of disastrous political interventions in Central and South America, including a bloody 1954 coup d'état in Guatemala.

Last year, Chiquita was convicted in U.S. courts of paying criminal paramilitary groups in Colombia for “protection” as part of their operations in the early 2000s.

Although the government has negotiated a package of benefits for the now-fired banana workers, union leader Francisco Smith said on Thursday they intend to maintain both the strike and road blockades until Congress approves changes to the controversial pension problem, or ratifies benefits for striking workers.

Protesters near Panama City (Photo: Social media)

Police have arrested more than 200 demonstrators since the protests began, among them various union leaders. Saúl Méndez, the leader of one of Panama's largest unions, went into hiding in the Bolivian embassy after a warrant was issued for his arrest.

President Mulino in recent weeks has repeatedly attempted to curry favor with Chiquita, publicly imploring them not to close down their operations in Bocas del Toro.

Other unions, student groups, and indigenous movements have promised to continue.

Correction: Protesters have described pension reforms as “austerity measures”, but the government claims pension benefits will be increased for many participants. People who enter the program later in life will see reduced benefits, but most pensioners will see modest increases due to inflation adjustments, according to government claims.

This PWS feature originally presented protesters’ claims as a neutral fact. Those sections have since been corrected.

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Hasta pronto, piratas!