In a dramatic turn for the Panamanian economy and its vital banana industry, Chiquita Brands, one of the world's largest banana producers, has announced its return to Panama following a turbulent shutdown earlier this year. The company, which shuttered its Changuinola plant in Bocas del Toro at the end of May 2025, is poised to relaunch operations and rehire thousands of workers previously laid off amid a crippling strike over pension reform. The move signals a significant rebound for both the company and the local communities that depend on banana exports for their livelihoods.
The shutdown in May left more than 6,000 workers unemployed and sent shockwaves through the western province of Bocas del Toro, a region that relies heavily on both tourism and banana production. According to Reuters, the initial closure came after banana workers joined nationwide protests against pension reform, effectively paralyzing the area for weeks. The strike, which was later declared illegal by a labor court, not only halted production but also led to widespread food shortages due to road blockades.
Chiquita’s absence was felt acutely in Bocas del Toro, a province with just over 100,000 residents. Bananas remain Panama’s top export product, accounting for more than 17 percent of the nation’s exports in the first quarter of 2025, according to official data cited by AFP. In the first five months of the year alone, bananas represented 12 percent of all Panamanian exports, underscoring the crop’s economic importance.
The financial toll of the strike was severe. Chiquita reported losing more than $75 million due to the production halt, with some estimates pushing the figure above $100 million. Road closures and product shortages rippled through the province, amplifying the sense of crisis. The Panamanian government, recognizing the urgency of the situation, entered into negotiations with Chiquita to facilitate the company’s return.
On Friday, August 29, 2025, Panamanian President José Raúl Mulino traveled to Brasilia for a high-level meeting with Chiquita executives. Following the talks, both the government and Chiquita confirmed a new agreement that aims to restore production and jobs to Bocas del Toro. President Mulino announced in a video statement, “We have reached a positive agreement for Bocas del Toro and the thousands of workers who were left without jobs.”
Under the terms of the deal, Chiquita will invest $30 million to relaunch production across 5,000 hectares of farmland dedicated to banana cultivation. The company expects to be fully operational by February 2026, with the reopening unfolding in two distinct phases. In the first phase, Chiquita will hire approximately 3,000 workers to focus on cleanup and agricultural recovery. A second phase will see an additional 2,000 employees brought on board for harvesting and packaging activities. The company’s leadership emphasizes that this approach is designed to ensure a smooth and sustainable ramp-up of operations.
Carlos López, president of Chiquita, articulated the company’s vision for the future in a statement released after the agreement. “We are going to resume operations in the country under a new operational model that is more sustainable, modern, and efficient, creating decent jobs and contributing to the economic and social development of the country and the province of Bocas del Toro,” he said. López further highlighted that the new model would prioritize sustainability and efficiency, aiming to set a standard for the industry while supporting Panama’s broader economic goals.
The announcement has sparked cautious optimism among local leaders and workers. For many families in Bocas del Toro, the return of Chiquita represents more than just economic relief; it is a restoration of hope and stability after months of uncertainty. As the company prepares to rehire thousands, the impact on the province’s social fabric is expected to be profound. “In 2026, Panamanian bananas will shine again in the international market,” Chiquita noted in its statement, signaling confidence in the country’s ability to reclaim its place as a leading exporter.
The government, for its part, has framed the agreement as a win for both workers and the national economy. “The goal is to be operational no later than February 2026,” the government confirmed, adding that the phased reopening will allow for a careful and responsible recovery of production capacity. According to Reuters, the initial focus on cleanup and agricultural recovery is essential given the scale of disruption caused by the strike and subsequent layoffs.
But the story of Chiquita’s return is also one of lessons learned and the need for adaptation. The strike that led to the shutdown was rooted in widespread discontent over pension reforms, reflecting broader tensions within Panamanian society regarding workers’ rights and social protections. The fact that the strike was declared illegal by a labor court has added complexity to the narrative, raising questions about the balance between labor activism and legal frameworks in the country.
Chiquita’s commitment to a “more sustainable, modern, and efficient” operational model may also be seen as a response to these challenges. By pledging to create “decent jobs” and contribute to both economic and social development, the company is signaling an awareness of its responsibilities not just as an employer, but as a stakeholder in Panama’s future. The investment of $30 million in reactivating production is a significant vote of confidence in the country’s potential to recover and thrive.
For the thousands of workers who lost their jobs in May, the prospect of reemployment is a lifeline. The phased rehiring process is expected to prioritize those who were previously laid off, offering a path back to stability for families across Bocas del Toro. As President Mulino put it, the agreement represents “a positive outcome for the province and the thousands of workers who were left unemployed.”
Looking ahead, the success of Chiquita’s return will depend on the company’s ability to navigate the challenges of rebuilding its operations while fostering a more resilient and equitable relationship with its workforce. The events of 2025 have underscored the fragility of Panama’s export economy and the importance of social dialogue in resolving disputes. As Chiquita prepares to relaunch its production lines, all eyes will be on Bocas del Toro to see whether this new chapter delivers on its promise of sustainability, prosperity, and renewed international prominence for Panamanian bananas.
The coming months will test the strength of the new partnership between Chiquita, the Panamanian government, and the workers of Bocas del Toro. If successful, it could serve as a model for how multinational companies and local communities can work together to overcome adversity and build a more inclusive future.
