The U.S.-headquartered banana giant Chiquita said Thursday that it moved to fire thousands of Panamanian workers who walked off the job last month as part of nationwide protests against the right-wing government’s unpopular reforms to the nation’s pension system.
Citing an unnamed source close to Chiquita, Reuters reported that the mass firings are expected to impact around 5,000 of the company’s 6,500 Panamanian workers. José Raúl Mulino, Panama’s right-wing president, defended the banana giant formerly known as United Fruit, accusing striking workers of unlawful “intransigence.”
The company estimates that the strike, which began in late April, has cost it at least $75 million.
The pension reforms, known as Law 462, sparked outrage across Panama, with unions and other groups warning the changes would result in cuts to retirement benefits, particularly in the future for younger workers. The law transitions the country’s pension system to an individual account structure that opponents say will be far less reliable than its predecessor.
“With the previous legislation, we could retire on 60% to 70% of our salary. Now, with the new formula, that amount drops to just 30% to 35%,” said Diógenes Sánchez of Panama’s main teachers’ union. “It’s a starvation pension.”
The Associated Press noted Thursday that in recent weeks, “marches and occasional roadblocks have stretched from one end of the country to the other as teachers, construction workers, and other unions expressed their rejection of changes the government said were necessary to keep the social security system solvent.”
Source: Common Dreams
