• Chiquita has laid off all daily banana laborers due to a month-long strike.
• The strike resulted from protests against new social security reforms in Panama.
• The company reported losses of at least $75 million due to the strike.
• President Mulino declared the strike illegal, citing "intransigence" from union leaders.
• Negotiations are ongoing between the government and trade unions regarding the reforms.

Chiquita Brands has announced the layoff of thousands of its workers in Panama following a strike that has persisted for over three weeks, with workers protesting against changes to the social security system. The company stated that their decision came as a result of "unjustified abandonment" of their duties, leading to significant operational disruptions. Panamanian President José Raúl Mulino highlighted that approximately 5,000 out of 7,000 jobs at Chiquita Panama were threatened if the strike continued. "The government has declared the strike illegal," he noted, emphasizing the urgency of the situation, according to India Times and Le Monde.

According to Chiquita, the strike has caused its operations to incur at least $75 million in losses, severely impacting the banana plantations located in the Caribbean province of Bocas del Toro, which rely heavily on both tourism and banana production. The company stated this mass layoff will affect all daily laborers, who do not hold permanent contracts and are hired seasonally at harvest time. “The damage is irreversible,” Chiquita elaborated in its statements, whereas Mulino criticized union leadership for the plight caused by ongoing protests, according to Al Jazeera and Le Monde.

The strikes began on April 28 in response to pension reforms introduced in Bill 462, which workers argue could lead to a reduction in benefits. While the government has branded the strike illegal, union leaders like Francisco Smith assert its legality, reinforcing their demands for fairer pension and healthcare regulations. Despite ongoing negotiations, he declared that the strike will continue indefinitely, highlighting the tensions between workers and the government, according to Al Jazeera and India Times.