Panama: Impact of Strike on Construction Industry

Panamanians will suffer from expensive housing and a contraction of the economy if companies accept the demands imposed by the union, which remains on strike.

Friday, April 25, 2014

Although both parties resumed talks on the morning of Friday April 25, the possibility of reaching an agreement still seems distant, as the union is holding to its demand to increase wages by 107% over the four years of the new collective agreement.

"On the third day of strike in the construction sector, business associations rejected the wage demands of the labor union and warned about its consequences: a decrease in the number of projects, with the consequent dismissal of labor-and rising housing costs" reported

Rodriguez, a spokesman for Capac, predicted that if the proposal by Suntracs is accepted, "thousands of Panamanians will lose their ability to buy a home." "We would be approving a salary which would mean that you would not be able to buy a house and construction activity would be reduced."

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Construction Strike in Panama

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Construction Strike in Panama Postponed

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Panama: Talks Between Employers and Construction Union Break Down

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After weeks of conflict, the parties have ended talks and left resolution of the problem in the hands of the Ministry.  

The Trade Union of Construction Workers and Similar (Suntracs) and the Panamanian Chamber of Construction (CAPAC) confirmed that the Ministry of Labor and Workforce Development (Mitradel) will have to mediate between the two parties, once the round of negotiations has been suspended.