Chiquita has laid off about 5,000 workers in Panama amid a month-long strike protesting new social security laws that reduce pensions. President Jose Raul Mulino labeled the strike illegal and justified the layoffs, stating they were necessary due to the disruption caused. He cited significant financial losses, at least $75 million, as a consequence of the ongoing protests. Union leaders argued the legality of the strike, claiming the new law adversely affects the banana industry, highlighting divisions between labor and government responses to these reforms.
Chiquita reported that the ongoing strike has inflicted at least $75 million in losses, prompting the decision to lay off workers due to the 'unjustified abandonment of work'.
President Jose Raul Mulino defended the layoffs, stating, 'the company will have to act accordingly, dismissing those necessary to save its operation in Bocas'.
Secretary-general of the Banana Industry Workers Union, Francisco Smith, claimed the strike was legal, arguing the new social security law severely impacts the banana sector.
Mulino labeled the strike as illegal, asserting that the next step under the Labour Code is dismissal due to it being a 'de facto strike' rather than a legitimate one.
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