Chiquita Resumes Panama Operations, Rehiring 3,000 Workers After $75 Million Losses

Panama City witnessed a significant development as President José Raúl Mulino finalized an agreement with Chiquita Brands, paving the way for the resumption of operations by the banana transnational after a prolonged strike led to the termination and suspension of thousands of workers. The initial strike erupted in March in Panama's Bocas del Toro province, where Chiquita banana workers joined various labor sectors in protest against changes to the social security system. The strike was declared illegal by President Mulino, who supported Chiquita's stance as the company faced substantial financial losses estimated at $75 million due to the disruption.

In May, Chiquita responded by dismissing thousands of striking workers, a move that underscored the gravity of the situation. However, the recent agreement signed in Brazil reflects a progressive step toward reconciliation and economic stability. Chiquita Brands has committed to rehiring 3,000 workers initially, with plans to bring back an additional 2,000. This gradual return is part of the broader strategy to reestablish full operational capacity in Panama by February 2026, a timeline outlined by the government in its public statement.

The Chamber of Commerce, Industries, and Agriculture of Panama has openly celebrated the return of Chiquita, citing it as a testament to international confidence in Panama's economic environment. As the largest private business association in the country, the Chamber emphasized that the resumption of Chiquita's activities in Bocas del Toro signals a key boost for the local economy, particularly given the growing strength of the sector which exported around 18 million boxes of bananas in 2024, positioning bananas as Panama's leading export.

Chiquita's decision to return also highlights the recognized potential of Bocas del Toro, a region praised globally for its fertile grounds ideal for banana cultivation. With the implementation of a more modern, sustainable, and efficient operating model, Chiquita aims to enhance productivity while generating a positive impact on the regional communities. The Chamber stressed that the success of such investments hinges on adherence to legal frameworks, safeguarding labor rights, ensuring consistent production, and fostering a climate conducive to investor confidence.

Although Chiquita temporarily ceased its operations between May and June due to the indefinite labor strike protesting pension regulation, the recent agreement signifies a pivot towards renewed collaboration and constructive engagement. Panamanian President Mulino, an ardent supporter of Chiquita throughout the crisis, has reiterated the necessity of further regulation within the banana sector. He acknowledged the painful yet necessary dismissals during the crisis, given the intransigent nature of the strike, which he deemed unjustified.

Mulino's administration has positioned itself as a defender of Chiquita's actions, interpreting the strike as de facto rather than legitimate. Union leader Francisco Smith has faced legal challenges, including a restraining order and criminal prosecution, further reflecting the contentious landscape of labor relations. Meanwhile, reports indicate that Chiquita's total layoffs encompassed approximately 5,000 workers out of the 6,500 employed nationwide, intensifying the economic repercussions felt across Panama.

As Chiquita moves forward with its plan to reboot operations, attention remains focused on the restoration of its workforce and whether the new operational model will indeed align with sustainable and productive practices. The agreement signifies not merely a return of the company but a renewed opportunity for Panama's economic landscape to evolve beyond past conflicts, fostering growth and stability through improved industrial relations and strategic collaboration.