Panama: National strike holds firm against pension reform, extractivism

May 9, 2025
Issue 
striking workers marching in Panama
Striking workers marching in Panama on May 7. Photo: @suntracs_panama/X

Workers in Panama remain on strike, protesting the government’s recently passed pension reforms, submission to United States imperialism and plans to reactivate a destructive mining project in the country.

Teachers in the public education system launched an indefinite strike on April 23, and were later joined by various unions from the construction, education, agricultural and health sectors. SUNTRACS, the country’s biggest union, and SITRAIBANA, representing workers in the banana industry, joined the strike on April 28.

International Workers’ Day marches on May 1 bolstered the strike, with workers, students and environmental organisations mobilising across the country.

The strike and protests have widely rejected Law 462 — promulgated by the government on March 18 — which made significant changes to the public pension system.

While Panama incorporated a private pillar of the pension system in 2008, only 15% of the “economically active” population are members. The new reforms have been denounced for expanding the private pillar and opening the door to a full privatisation of the pension system.

Privatised pension systems in Latin America have resulted in less coverage of the population, lower pension amounts and higher gender inequality.

A survey of Panamanians in March found that 60% are opposed to the new law.

The strike is also rejecting a memorandum of understanding signed between the US and Panamanian governments on April 9, which allows the presence of US military personnel along the Panama Canal for “activities such as training, exercises and security cooperation”.

Protesters say the memorandum violates Panamanian sovereignty and the Panama Canal’s neutrality treaty, under which no foreign power can “maintain military forces, defense sites and military installations within its national territory”.

This comes as the Donald Trump administration is ramping up its imperialist rhetoric that it will “take back” the Panama Canal, and confirmed sending troops to the region.    

The strikers, along with environmental and human rights organisations, are protesting the government’s plans to allow the reopening of Cobre Panamá — Central America’s biggest open-cut copper mine.

Owned by a subsidiary of Canadian company First Quantum Minerals, the mine sits in the middle of a biodiverse protected area on Panama’s Atlantic Coast. The establishment and operation of the mine destroyed forests and wetlands, polluted the surrounding water and land, caused serious health problems in local communities and violated the labour rights of mineworkers.

Indigenous communities living within the perimeter of the sprawling mine site say that First Quantum operates as a state within a state, restricting movement with its private security forces.

Widespread protests and blockades in 2023 forced the supreme court to rule that the company’s contract with the government was unconstitutional, which shut down the mine.

However, neoliberal president José Mulino signalled in March his intention to reopen the mine, when he ordered the restart of its power plant and the sale of US$250 million worth of copper concentrate sitting at the mine. This is despite a national moratorium — prohibiting new mining concessions and the renewal of existing ones — being in place since November 2023.

A survey of Panamanians in March found that 60% were opposed to reopening of the mine.

Police have met protests across the country with heavy-handed repression and violence.

Police fired teargas canisters directly at students and workers protesting at the University of Panama, in Panama City, on April 28. Police also arbitrarily detained students and teachers and violated university autonomy, which prohibits the entry of police forces into universities without prior authorisation.

Despite the heavy police repression, the strike is continuing. SUNTRACS reiterated its core demands on May 4, which are: the repeal of Law 462; no memorandum with the US; no to the reactivation of mining; and for protection of Indigenous communities.

SUNTRACS secretary general Saúl Méndez told a press conference on May 2 that the strike had successfully paralysed 95% of construction projects nationwide.

“Thousands of us are marching in defence of our rights, in rejection of neoliberal policies and for the repeal of the [pension reform] law,” Méndez said. “We also denounce the foreign military presence on our soil.”

Méndez reaffirmed that the strike would continue.

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