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Banana Giant Chiquita Returns to Panama After Mass Layoffs

Aug 30, 2025 | World

August 30, 2025

Panama’s president, José Raúl Mulino, has struck a deal with Chiquita Brands to bring the banana giant back into full operation after months of turmoil. The agreement follows one of the country’s most heated labor disputes in recent years, which left thousands without jobs and shook the economy of Bocas del Toro — Panama’s heartland for banana production.

Back in March, Chiquita workers joined nationwide strikes over proposed changes to the social security system. Mulino’s government deemed the strike illegal, and by May, Chiquita had fired thousands of workers, blaming losses of at least $75 million.

Now, under the new agreement signed in Brazil, Chiquita has committed to rehiring workers in phases — starting with 3,000, followed by another 2,000 — with a goal of returning to full operations by February 2026.

For Panama, this marks a major step toward stabilizing a sector that is not only central to Bocas del Toro’s economy but also symbolic of the country’s role in the global banana trade. For workers, it represents a second chance after months of uncertainty — though the dispute highlighted ongoing tensions between labor rights, government policy, and multinational corporations in Latin America.

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