Arguing reasons of force majeure, the construction company Fomento de Construcciones y Contratas requested the Panamanian Social Security Fund to unilaterally cancel the contract for the construction of the hospital complex.
As part of the process of reopening the Panamanian economy, it is estimated that in the last two weeks close to 90,000 work contracts have been reactivated, which represents 30% of the suspended labor agreements.
Due to the outbreak of covid-19 and the restrictions imposed by the Panamanian authorities on most economic activities, from March to date about 292 thousand labor contracts have been suspended.
The National Assembly approved in third debate the draft law establishing temporary employment protection measures in companies affected by covid-19.
The initiative presented by the Executive received several modifications in its original content, both in the first and second debate, leaving the deputies with the reservation that these are temporary rules and are not intended to a future reform of the Labor Code, the Assembly reported.
In this scenario of economic crisis, the Ministry of Labor has extended for the fourth time and for 30 more days, the provision that allows companies in the country to suspend the contracts of their employees.
Executive Decree No. 100 of July 1, 2020 authorized a further extension of the temporary suspension of the effects of employment contracts, which will apply automatically for a period of 30 calendar days in companies whose operations have not been reactivated according to the plans for a gradual return to economic activity, reported the Labor Ministry.
In Panama, the Ministry of Labor has again extended for 30 days the provision that allows companies in the country to suspend the contracts of their employees.
By Executive Decree No.97 of May 29, 2020 and in the scenario of the crisis caused by covid-19, the temporary suspension of the effects of labor contracts is extended for the second time.
The decision of the Legislative Assembly to not endorse the bill that seeks to approve the contract between the government and Minera Panamá, shows the fragility of the contracts between the Panamanian state and companies.
The obstacles to the mining project date back several years, since the legal dispute began in 2009, when the Environmental Impact Center (CIAM) filed an appeal of unconstitutionality against the contract granting a 20-year concession to exploit and commercialize the gold, copper and other mineral resources of Cerro Petaquilla.
The Tourism Authority informed CCA-Cocige, responsible for building the Convention Center in Amador, the intention to cancel the contract because of critical flaws in the design and infrastructure.
The work was originally awarded to HPC Contratas P&V, but in 2016, after work was halted for 24 months because of a liquidity problem, the project was assigned to the CCA-Cocige consortium.
Two years after the publication of the tender, the Varela administration and the Panama Fourth Bridge Consortium signed the contract for the design and construction of the Fourth Bridge over the Panama Canal.
From the statement of the Ministry of Public Works:
November 9th, 2018. Today, the Government of the Republic of Panama, through the Ministry of Public Works (MOP) carried out the signing of the contract with the Panama Fourth Bridge Consortium, formed by the companies CHINA COMMUNICATIONS CONSTRUCTION COMPANY LTD and CHINA HARBOUR ENGINEERING COMPANY LTD, for the design and construction of the Fourth Bridge over the Panama Canal, in accordance with the award as a result of the tender for the Best Value with Separate Evaluation No. 2016-0-09-0-99-LV-004736, for an investment amount of B/.1,420,027,324.73.
In January 2018 the Ministry of Labor registered 24,508 labor contracts, 21% more than those reported in the same month in 2017.
The economic activity that registered the highest number of contracts in January 2018 was construction with 9,848, followed by wholesale and retail trade that added 5,201, and thirdly, administrative activities and support services with 2,648.
The fall recorded in employment contracts signed between 2016 and 2017 contrasts with the increase of 5% reported between 2015 and 2016.
According to figures from the Panamanian Ministry of Labor and Labor Development, from January to December 2017, 283,358 contracts were registered at the entity's headquarters, of which 122,169 were for a fixed term, 85,573 for specific works and 75,616 for an indefinite period.
The Social Security Fund will be able to extend the contract for hemodialysis services and ensure coverage until October 2018.
The Cabinet Council has authorized the Social Security Fund (CSS) to make an addendum to the contract for the hemodialysis service, in order to guarantee the service until October next year.
In the first quarter of the year there were 71 thousand work contracts, 3% more than the 68 thousand reported in the same period in 2016.
Data from the quarterly report by the Comptroller General of the Republic indicates that in the same period in 2016, fixed term contracts increased by 8.4%, contracts for a specific project or service by 1.1%, while open ended contracts went down by 2, 6%.
HPC Contratas P & V will not finish the construction of public markets and supply stores in La Chorrera, and the bond company will have to hire another company or pay the performance bond.
After three years of cessation of work by the contractor due to liquidity problems in the consortium HPC Contratas P & V, the state run Mercado Nacional de la Cadena de Frío decided to terminate the contract.
The construction company has one week to respond to the proposal put forward by the Panamanian government, which is geared towards cancelling the award of the Chan II hydroelectric station at no cost to the State.
The Ministry of Finance submitted the proposal to the Brazilian construction company on January 26, and it has one week to respond and start to coordinate the withdrawal from the construction project on the dam now known as Bocas del Toro.
Two months after the award of a $20 million contract for an international promotion strategy, the adjudicating company is still carrying out its analysis.
Once the company VML International has completed the contract review process, it must then be approved by the comptroller general, which could further delay its implementation.