The American banana company Chiquita is set to re-establish itself in Panama, after closing down operations as a result of a strike in May. This is according to the country’s authorities.
The strike, which concerned pension reforms, paralyzed production at Chiquita’s plant in the province of Bocas del Toro on the Caribbean coast. The labor court declared that the strike—which resulted in a loss of $75 million—was illegal. This is despite obvious exploitation of the workers.
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Chiquita promises a cure and recovery!
As a result, Chiquita chose to close the factory, and all 6000 workers lost their jobs. Panamanian authorities have since negotiated with the company in hopes of getting them back to the region, where banana production and tourism are very important to the economy.
Historically charged name
Chiquita has a contentious history in Latin America. In the 1990s, the company was blamed for funding paramilitary groups in Colombia, which led to a number of civilian deaths. In 2007, the company admitted in a US court that it had paid protection money to right-wing death squads and was fined $25 million.
In the past, the company has also rightly been accused of undermining national economies, exploiting workers and contributing to environmental damage in banana republics.
Promises improvements
On Friday, President José Raúl Mulino announced “a positive deal for Bocas del Toro and the thousands of workers who became unemployed” after the closure.
“We will resume production in the country under a new operating model that is more sustainable, modern and efficient. We will create decent jobs and contribute to the social and economic development of the country and province,” says Chiquita CEO Carlos Lopez.
According to the agreement, Chiquita will hire 300 people initially and up to 2000 eventually. The company will invest about USD 30 million – equivalent to NOK 300 million – and hopes to be operational by February next year at the latest.
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