For months, the future of thousands of Panamanian families hung in the balance as the banana fields of Bocas del Toro fell silent. The abrupt closure of Chiquita Brands’ Changuinola plant at the end of May 2025, following a contentious strike over pension reforms, sent shockwaves through this Caribbean province and the entire nation. But now, hope is returning to the region as the U.S. banana giant has announced plans to resume operations, rehire thousands of workers, and invest millions to rebuild one of Panama’s most vital industries.
The crisis began when Chiquita, one of the world’s leading banana producers, shut down its processing plant in Changuinola after a widespread strike protesting changes to the retirement system. According to Latin Times, the closure resulted in the layoff of 6,000 workers, plunging many families into uncertainty and economic distress. The province of Bocas del Toro, home to about 100,000 people, relies heavily on both tourism and banana exports, making the shutdown a devastating blow to the local community.
The strike, which was declared illegal by a labor court, brought more than just halted production. It caused over $75 million in losses for Chiquita, led to road closures, and resulted in product shortages throughout the province. The company’s decision to cease operations and terminate thousands of workers triggered widespread anxiety and economic hardship—not only for those directly employed but also for small businesses and suppliers who depend on the banana trade.
With the region’s economy reeling, the Panamanian government stepped in to mediate. After weeks of tense negotiations, a pivotal meeting was held in Brazil, bringing together Panamanian President José Raúl Mulino, Chiquita’s top management, and representatives from Brazilian firms holding controlling stakes in the American company. This high-stakes discussion marked a turning point in the standoff.
On August 29, 2025, President Mulino announced, “a positive agreement for Bocas del Toro and the thousands of workers who were left unemployed by the closure.” His optimism was echoed by Chiquita President Carlos Lopez, who stated, “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.”
According to the agreement, Chiquita will hire about 3,000 workers in the first phase, with another 2,000 to be brought on later. The company has pledged to invest $30 million to restart production on 5,000 hectares of banana-growing land, with the goal of being fully operational no later than February 2026. This phased rehiring is a lifeline for thousands of families who have been living in limbo since the layoffs. For many in Bocas del Toro, the news brings a much-needed sigh of relief and a path back to stability.
The significance of Chiquita’s return extends far beyond the company’s payroll. Bananas accounted for more than 17 percent of Panamanian exports in the first quarter of 2025, according to official data cited by Latin Times. The banana industry is a cornerstone of Panama’s trade, and its revival is expected to spark economic growth throughout the region. Local businesses that supply goods and services to banana farms, as well as transportation and export companies, stand to benefit from the renewed activity.
The closure and subsequent reopening of Chiquita’s operations have highlighted the delicate balance between labor rights and business interests in Panama’s export-driven economy. The strike, while intended to secure better retirement conditions for workers, ended up causing widespread hardship and uncertainty. Yet, it also underscored the power of collective action and the need for open dialogue between employers and employees.
Reflecting on the episode, it’s clear that labor disputes can have far-reaching consequences. Strikes are a powerful tool for workers to demand better conditions, but they can also trigger unintended hardships if negotiations break down. As Latin Times observed, the fact that Chiquita and the Panamanian government were able to return to the negotiating table and find a solution demonstrates that even the most difficult conflicts can pave the way for constructive agreements.
For workers, this story is a testament to the importance of unity and perseverance, balanced by the need for effective communication with employers. For companies, it’s a lesson in the value of maintaining strong community relations and being responsive to employee concerns before disputes escalate into crises. The events in Bocas del Toro serve as a reminder that the health of a business and the well-being of its workforce are deeply intertwined.
Chiquita’s new operational model, described as “more sustainable, modern, and efficient,” is intended not only to improve profitability but also to ensure dignified employment and contribute to the social and economic development of the region. As Carlos Lopez put it, the company is committed to relaunching activities in a way that supports both the workforce and the broader community.
The road ahead will not be without challenges. Rebuilding trust between workers and management, ensuring fair labor practices, and delivering on promises of sustainability will all be crucial to the long-term success of Chiquita’s renewed presence in Panama. But for now, the mood in Bocas del Toro is one of cautious optimism.
As the banana fields prepare to come back to life, families across the province are looking forward to a future that once again feels within reach. The story of Chiquita’s closure and comeback is a powerful reminder of the resilience of communities and the importance of finding common ground, even when the odds seem stacked against it.
With the first phase of hiring set to begin soon and the promise of full operations by early 2026, Bocas del Toro stands at the threshold of renewal. The lessons learned from this tumultuous period will no doubt shape the region’s labor relations and economic strategies for years to come, offering hope that the next chapter will be one of collaboration, growth, and shared prosperity.
