Union Struggle Won’t Affect Limon Privatization

An ongoing conflict over who controls the Port Workers Union would not affect the government’s initiative to privatize it.

Monday, March 1, 2010

The current board, lead by Douglas Brenes, is endorsed by the Labor Ministry.

“The competent authority in these matters is the Labor Ministry. Whatever it rules is valid. It is complicated to analyze if what it decides it wrong or right, because a small detail might change the entire situation. But in essence, if it endorsed a board, the decisions of this are considered valid”, commented Luis Sánches, labor director at a major law firm.

More on this topic

Union Twists Government’s Arm

May 2011

The government of Costa Rica has put on hold "indefinitely" the process for the concession of the ports of Limon and Moin.

Caught between the demands of port efficiency by the productive sectors and the real power of the union, the Chinchilla administration has back tracked on its intention to grant concessions to private companies for the modernization and operation of the ports of Limon and Moin, and now intends to invest about $70 million to make sure that this essential modernization takes place, while keeping both terminals under the management of the Port Management Board of the Atlantic (JAPDEVA).

Port Concession in Limon and Moin Complicates Even More

January 2011

The labor union of the Caribbean ports of Costa Rica re-elected directors which are radically opposed to concession the ports to private investors.

At the same time in which dredging has started in order to increase capacity of tankers docking at Moin -with an expansion of the oil terminal which will be tendered in March 2011 - the workers voted overwhelmingly to re-elect union leaders who oppose granting management of the ports to the private sector.

Port Concessions Paralyzed in Costa Rica

August 2010

The Supreme Court has annulled an agreement reached with port workers who endorsed the concession of the Limón and Moín port operations.

The ruling also orders the reinstatement of the previous union board of directors, who opposed the concession of port operations to private companies.

Limon and Moin Ports Go Out to Tender on May

April 2010

On May authorities will unveil the bidding rules for handling these two Costa Rican ports to private operators.

This was announced by Israel Oconotrillo, spokesperson for Japdeva (ports administrator on the Atlantic coast).

The start of this process required a signed agreement between the union of Japdeva workers and Japdeva itself, authorizing the port to be transferred to private operators by paying current employees $137 million in indemnification. Such agreement was finally signed on Tuesday, April 27.

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