30 days after the strike began, employers and workers have finally reached an agreement on the scale of salary adjustments for the period 2018-2021.
From a statement issued by the Panamanian Chamber of Construction (CAPAC):
May 18, 2018.The Panamanian Chamber of Construction (CAPAC) informs its members and thegeneral public that today, May 18, a salary agreement was reached with the National Union of Construction Workers and Similar (Suntracs).
To end the strike that has now been going on for almost a month, the Panamanian construction union suggested to the workers' union that the disagreement be resolved through arbitration.
With two days to go before the strike enters its second month, and in view of the inability to reach an agreement, the Panamanian Chamber of Construction proposed to the Single Trade Union of Construction and Similar Workers (Suntracs) to arbitrate in order to resolve the conflict.
In Panama, the workers' union is still opposed to the salary increase proposal put forward by employers, and it is keeping in place the construction work strike, now in its 14th day.
The country that has been leading construction activity in Central America over the last few years, has seen work on 260 constructionprojects nationwide paralysed for almost two weeks.
A savings fund, housing loans, expenses for recreation and bonuses, scholarships for children, and restaurant services for employees of the state and the monopolist hydrocarbons distributor of Costa Rica, are financed through the prices paid by consumers, even by the poorest.
The Supreme Court has ordered the cost of giving bonuses to employees of the state run monopolistic distributor to be incorporated into fuel prices.
EDITORIAL
The resulting increase in fuel prices forces the country's economy to directly pay for the privileges enjoyed by some public officials, aggravating a situation in the private productive sector which must find new ways of staying competitive in a local context which is becoming increasingly adverse, with an unfavorable exchange rate for the export sector and rising production costs.
In the public sector in Costa Rica collective agreements have become synonymous with illegal privileges and economic dysfunction, under the concept that acquired rights are unassailable.
Editorial
If a private sector company ceases to be competitive, no matter for what reason, it will eventually fall into bankruptcy and its employees will lose their jobs, no matter how many agreements they have signed with their employer.
Employers and the union have signed a collective agreement for 2014-2017 establishing a tiered wage increase starting with 27 cents in the first year.
Representatives of the Union of Construction Workers and Similar Entities (SUNTRACS) and the Panamanian Chamber of Construction (CAPAC) signed the collective agreement, effective until 2017, that includes a salary adjustment of 98 cents an hour, to be implemented in stages over four years, representing 35.87 %, or 9% per annum.
Port activity will once again come to a standstill on 11 days of the year due to the abolition of the reforms agreed with workers.
Costa Rica's constitutional court has ruled illegitimate a reform by the country's Atlantic Port Development Management Board (JAPDEVA in Spanish) that specified the port union's board of directors. The port union (abbreviated SINTRAJAP in Spanish) had negotiated the reform with the government.