Construction Paralyzed in Panama

Unions and business leaders are still in negotiations to end the strike that has been going on since last Wednesday, affecting all construction projects in the country, including the expansion of Tocumen and Metro Line 2.

Friday, April 20, 2018

The work stoppage has affected almost 100% of the works under construction in the country, from private projects to other state run projects, such as the expansion of the Panama City airport and expansion of the Metro. 

The main reason why the negotiations over an collective agreement have not made progress is the setting of a salary increase, since in the other points an agreement has been reached, specifically, in "... 145 of the 155 clauses of the document that will govern for the next four years."

Panamaamerica.com.pa reports that "...The Capac presented on Wednesday night a new proposal to try to end the strike in the construction sector promoted by the Suntracs, of 2.5% for the next four years. Meanwhile, Suntracs, which initially requested a salary adjustment of 60% paid at a rate of 15% per annum over the next four years, lowered its proposal last night to 52% at a rate of 13% per year."

"... Given the measure of pressure being implemented by Suntracs, leaders of various business associations have called on the union to stop asking for such a high figure, as they believe that this will lead to an increase in the cost of housing, which will affect the General population."

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More on this topic

Construction: End of Strike?

May 2018

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.

Construction Strike: No Solution in Sight

April 2018

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 construction projects nationwide paralysed for almost two weeks. 

Panama: New Construction Strike Threat

April 2014

Although companies are willing to make adjustments from 2% to 4% in the three years that the new Collective Bargaining Agreement is in effect, the union wants more.

On April 23, work in the sector could be halted if companies and the union can not reach an agreement that satisfies the workers' union.

Construction Strike in Panama Postponed

April 2014

Business Chamber and Workers Union have agreed to continue negotiations which has postponed the threat of a general strike for 20 days.

It is estimated that losses to the Panama construction sector could be more than $9 million a day if the general workers strike takes place. The workers are demanding, among other things, that a single wage scale be established at a national level.

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