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How banana worker strikes over pensions triggered a state of emergency in Panama
How banana worker strikes over pensions triggered a state of emergency in Panama

Telegraph

time28-06-2025

  • Business
  • Telegraph

How banana worker strikes over pensions triggered a state of emergency in Panama

Workers have plunged Panama into crisis after the government announced plans to phase out a popular retirement scheme. The Latin American country has declared a state of emergency in the north western Bocas del Toro province after controversial pension reforms sparked widespread protests. The government temporarily suspended constitutional rights and imposed internet blackouts following more than a month of strikes and road blocks which led to clashes with police. Local reports suggest at least one person has died, more than 300 have been arrested and dozens injured. The protesters warn they face poverty in retirement because of a new pension law signed in March. Strikes began in April, initially led by banana workers. Bananas are one of Panama's main exports along with shrimps and copper ore. The crisis escalated earlier this month after banana giant, Chiquita, laid off all of its 6,500 workers in the country. Chiquita has said the protests cost the firm at least $75m (£55m), with almost one million boxes of bananas lost, causing 'irreversible damage'. The deep social unrest exposes the perils of reforming a generous pension system in a country with limited trust in the government. For years, Panama has tried and failed to overhaul its defined benefit scheme in order to tackle a deficit now worth over $650m. As far back as 2006, the International Monetary Fund warned the scheme was facing crisis due to an ageing population and the level of benefits which it described as 'among the highest in Latin America' – and generous even by European standards. Under the scheme, the pension contributions of the working population fund the benefits of current retirees, rather than their own future pensions. Both private and public sector employees are covered by the system. Those who have made 20 years of contributions are eligible for 60pc of their average monthly earnings in retirement based on their highest paid 10 years. But this system has become unsustainable due to an ageing population. The number of over 65s in Panama has tripled in the last three decades from just over 100,000 at the end of the 20th century to more than 400,000 today. This means a growing number of retirees are dependent on the pension contributions of a shrinking pool of workers. To stop the scheme from sinking further into the red, Panama created a new mixed pension system in 2008. But without further reform, the deficit was still predicted to reach almost 4pc of GDP by 2045. In March, President Jose Raul Mulino signed into law reforms merging the two systems into a state-managed defined contribution scheme. Under the reforms, employee contributions will remain unchanged at 9.75pc of wages, employer contributions will rise gradually from 12.25pc to 15.25pc by 2029 and the government will pay almost $1bn a year to address any shortfalls. In addition, workers are promised a minimum pension of about $145 dollars a month. The government has claimed this is generous compared to the universal basic pensions available in other countries in Latin America. But workers have said the pension reforms will leave them in poverty in retirement. This is because their income will depend on investment performance as well as their own contributions. Mariano Thompson, a Latin America pensions expert, of insurance company WTW, said: 'An individual account system requires consistent contributions and reduced volatility in both national and global financial markets to ensure a decent return, as the benefit depends on the funds accumulated by retirement.' Many Panamanian workers are employed in the informal sector for at least a portion of their working career, potentially limiting the number of contributions they can make, and therefore, the size of their pension pot. Low trust in the government is another reason why the reform has triggered social unrest. Mr Thompson said: 'While the government justifies the reforms due to the growing deficit of the system, union protests are driven by a lack of trust in the government's ability to fulfil its promised contributions and minimum benefits.' He continued: 'These groups do not trust individual account schemes and would prefer a defined benefit model, which they regard as a solidarity-based system.' Workers are also suspicious about future retirement age increases, he added. The reform maintained the retirement age at 62 for men and 57 for women – but scheduled a review in six years' time. Pension reform is not the only thing motivating the protests. President Mulino has become increasingly unpopular for signing a Memorandum of Understanding, which gives US military vessels free passage and allows US soldiers to train on Panamanian soil. The government has insisted this does not impact Panama's sovereignty or the neutrality deal. But it has provoked outrage from Panamanians who accuse the president of cosying up to President Donald Trump, who has previously threatened to seize back control of the Panama Canal.

Panama cuts internet, cell phones in restive province
Panama cuts internet, cell phones in restive province

Yahoo

time22-06-2025

  • Politics
  • Yahoo

Panama cuts internet, cell phones in restive province

Panamanian authorities on Saturday partially suspended internet and mobile phone service in a western province where a state of emergency was in effect after two months of anti-government unrest. Right-wing President Jose Raul Mulino declared the emergency on Friday, suspending freedom of assembly and movement in Bocas del Toro province, where protesters have set up roadblocks and damaged the airport, businesses and offices. The National Authority for Public Services said on X that based on the emergency decree, "the temporary suspension of mobile phone and residential internet service has been coordinated in the province of Bocas del Toro until June 25." Internet service would remain available for health care, businesses and government entities, the agency said. Anti-government protests began almost two months ago in the major banana-producing region of Bocas del Toro. They turned violent Thursday in the city of Changuinola when groups of hooded individuals looted businesses and partially set fire to a baseball stadium with police officers inside, authorities said. The unrest has seen one dead, more than 100 arrested, and dozens injured, including 13 police officers, according to authorities. Mulino has been facing protests on several fronts in recent months. Workers with US banana giant Chiquita in Bocas del Toro went on strike in late April over pension reforms adopted by Congress, which critics say will force them to work longer. Chiquita sacked thousands of workers over the strike. The banana growers' unions called off their protest last week in a bid to reverse the layoffs but other groups have remained at the barricades. Besides the pension reforms, Panamanians have also been in the streets over a deal Mulino struck with US President Donald Trump in April allowing US troops to deploy to Panamanian bases along the Panama Canal. The US Embassy in Panama issued a security alert Friday prohibiting American government staffers from traveling to Bocas del Toro "until further notice." cmm/mis/dg/cls/dth/acb/bjt

Panama cuts internet, cell phones in restive province
Panama cuts internet, cell phones in restive province

Yahoo

time22-06-2025

  • Politics
  • Yahoo

Panama cuts internet, cell phones in restive province

Panamanian authorities on Saturday partially suspended internet and mobile phone service in a western province where a state of emergency was in effect after two months of anti-government unrest. Right-wing President Jose Raul Mulino declared the emergency on Friday, suspending freedom of assembly and movement in Bocas del Toro province, where protesters have set up roadblocks and damaged the airport, businesses and offices. The National Authority for Public Services said on X that based on the emergency decree, "the temporary suspension of mobile phone and residential internet service has been coordinated in the province of Bocas del Toro until June 25." Internet service would remain available for health care, businesses and government entities, the agency said. Anti-government protests began almost two months ago in the major banana-producing region of Bocas del Toro. They turned violent Thursday in the city of Changuinola when groups of hooded individuals looted businesses and partially set fire to a baseball stadium with police officers inside, authorities said. The unrest has seen one dead, more than 100 arrested, and dozens injured, including 13 police officers, according to authorities. Mulino has been facing protests on several fronts in recent months. Workers with US banana giant Chiquita in Bocas del Toro went on strike in late April over pension reforms adopted by Congress, which critics say will force them to work longer. Chiquita sacked thousands of workers over the strike. The banana growers' unions called off their protest last week in a bid to reverse the layoffs but other groups have remained at the barricades. Besides the pension reforms, Panamanians have also been in the streets over a deal Mulino struck with US President Donald Trump in April allowing US troops to deploy to Panamanian bases along the Panama Canal. The US Embassy in Panama issued a security alert Friday prohibiting American government staffers from traveling to Bocas del Toro "until further notice." cmm/mis/dg/cls/dth/acb/bjt

Panama cuts internet, cell phones in restive province
Panama cuts internet, cell phones in restive province

News.com.au

time22-06-2025

  • Politics
  • News.com.au

Panama cuts internet, cell phones in restive province

Panamanian authorities on Saturday partially suspended internet and mobile phone service in a western province where a state of emergency was in effect after two months of anti-government unrest. Right-wing President Jose Raul Mulino declared the emergency on Friday, suspending freedom of assembly and movement in Bocas del Toro province, where protesters have set up roadblocks and damaged the airport, businesses and offices. The National Authority for Public Services said on X that based on the emergency decree, "the temporary suspension of mobile phone and residential internet service has been coordinated in the province of Bocas del Toro until June 25." Internet service would remain available for health care, businesses and government entities, the agency said. Anti-government protests began almost two months ago in the major banana-producing region of Bocas del Toro. They turned violent Thursday in the city of Changuinola when groups of hooded individuals looted businesses and partially set fire to a baseball stadium with police officers inside, authorities said. The unrest has seen one dead, more than 100 arrested, and dozens injured, including 13 police officers, according to authorities. Mulino has been facing protests on several fronts in recent months. Workers with US banana giant Chiquita in Bocas del Toro went on strike in late April over pension reforms adopted by Congress, which critics say will force them to work longer. Chiquita sacked thousands of workers over the strike. The banana growers' unions called off their protest last week in a bid to reverse the layoffs but other groups have remained at the barricades. Besides the pension reforms, Panamanians have also been in the streets over a deal Mulino struck with US President Donald Trump in April allowing US troops to deploy to Panamanian bases along the Panama Canal. The US Embassy in Panama issued a security alert Friday prohibiting American government staffers from traveling to Bocas del Toro "until further notice."

Hamilton man, daughter missing in Panama; Infant son found dead
Hamilton man, daughter missing in Panama; Infant son found dead

CTV News

time14-06-2025

  • CTV News

Hamilton man, daughter missing in Panama; Infant son found dead

Hamilton, Ont. resident Ghussan Iqbal with his son Musa and daughter Nousaybah. The three went missing in Panama on May 21. Musa's body was found just over a week later in a river. (Supplied) The infant son of a Canadian man who has been missing in Panama for weeks was recently found deceased, as the frantic search for the baby's father and his other child continues. On May 21, Hamilton, Ont. native Ghussan Iqbal left his home in the central American country's Bocas del Toro province with his seven-month-old son, Musa, and two-year-old daughter, Nousaybah, who is a Canadian citizen. He left without his phone, wallet, money, or food, relatives said. Earlier this week, the Procuraduría General de la Nación, Panama's Attorney General's office, announced that the body of a baby boy that had been found in the Changuinola River on May 31 was confirmed through DNA testing to be Musa. In a statement, authorities said that the search for the other minor who was reported missing alongside the infant continues 'without rest,' as does the search for the children's father. Burial and janazah (Islamic funeral) prayer for Musa were set for this Thursday in the city of Changuinola. Salah al-Ghaib, which is an absentee funeral prayer, will be held on Sunday afternoon at the Muslim Association of Hamilton on Stone Church Road for the boy's family in southern Ontario. Musa Iqbal Seven-month-old Musa Iqbal went missing with his father and older sister on May 21 in Panama. His body was found in a river just over a week later. (Supplied) Family members rushed to Panama to help with search Iqbal, a McMaster University graduate, had stayed in Hamilton as recently as last summer but relocated to Panama about a year ago with his wife, who is from there, his family has said. His sister in-law, Nagham Azzam Iqbal, told CP24 that while he did struggle with some mental health challenges, her husband, Sulman, who is the man's older brother, and their children had spoken to Iqbal via video chat days prior to his disappearance and everything seemed fine. Two days later, he left his home with both of his children at around 6 a.m. and has not been heard from since, they said. The couple rushed to northwestern Panama to assist with the search efforts once they got word of the trio's disappearance. After more than two weeks, they're are heading home on Saturday, but have arranged for a representative to act on their behalf and advocate for the search to continue. Local authorities and teams of volunteers from the area, which is home to several large banana plantations, immediately began searching for Iqbal and the children, even issuing an Amber Alert. Despite having limited resources, they've been scouring the region daily on foot from sunrise to sunset. 'It just feels like an impossible task. We need more resources,' the sister-in-law said. Ghussan Iqbal with his son Musa Hamilton, Ont. native Ghussan Iqbal with his son Musa, who disappeared with his father, and older sister Nousaybah (not pictured), in Panama on May 21. Just over a week later Musa's body was found in a river. (Supplied) In the meantime, family members and friends have undertaken extensive social media and letter-writing campaigns in an effort to raise awareness about the situation and appeal for more tangible support and resources, not only from those in the region but also from the government back home. They've also launched a crowdfunding campaign to help pay for the many expenses associated with the search. 'We're really in need of help from the Canadian government to do something, anything, to lend a hand. … We've tried to do everything on our own. We don't know what else to do,' said the men's brother-in-law, Waseem Khokar, who has stayed back in Canada with his wife (Iqbal's eldest sibling) to handle logistics. Family doesn't know why man left with 2 kids Iqbal's family said they still do not know exactly why he left with his children, noting that authorities have not ruled out abduction, a mental health crisis, or even foul play. The man's relatives said they worry that their loved one's undiagnosed mental health issues, including possibly psychosis, have worsened due to a lack of access to care abroad. They shared with CP24 that he had been admitted to Hamilton's St. Joseph's Mental Health Hospital for three weeks last year. And while Iqbal had previously taken off on his own, sometimes for a number of days, he'd never before left with the children, his sister-in-law said. Family members who spoke with CP24 said that while they do not believe that he set out to intentionally harm the children, the conditions in that part of Panama may have made it difficult for him to care for them properly. 'The concern is with his mental health, with the terrain, with what we're living around us, even the heat … We don't know how he could help them sustain their lives in this situation, so we're just extremely concerned,' Nagham Azzam Iqbal said, adding everyone's top priority is getting her young niece home safe. 'We'll figure it out together. We just need (them) to come home.' Nousaybah Iqbal Two-year-old Nousaybah Iqbal went missing in Panama with her father Ghussan and younger brother Musa on May 21. Musa's body was found in a river just over a week later. (Supplied) In a written statement, Global Affairs Canada said it is 'deeply saddened by the death of one of the minor children and our thoughts are with the family.' Global Affairs previously told CP24 that it was aware of a case involving a Canadian citizen and two minor children who were missing in Panama and said that consular officials were 'actively engaged with local authorities and are providing consular assistance to the family.' 'The safety and security of Canadian citizens abroad is a top priority for the Government of Canada,' a spokesperson said in a written statement provided to CP24. 'Local law enforcement is responsible for investigating reports of missing persons in their jurisdiction.' Local politician assisting the family Hamilton Mountain MP Lisa Hepfner is one of the people in Canada trying to support the family. She said she became aware of the situation in Panama after one of Iqbal's family members, who lives in her riding and whom she's known for several years, reached out to her for help. 'I immediately began working with Global Affairs Canada to resolve the situation and remain in close contact with the family. I am not at liberty to disclose more due to privacy considerations,' Hepfner wrote in an email to CP24. Anyone in Canada or Panama who has been in touch with Iqbal is being urged to come forward with any information that may aid the investigation.

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