The "Labor and Strike" Aspects of the "Lobster Law"
By DON WINNER for Panama-Guide.com - As you probably already know, over the weekend Panama's National Assembly passed Law 177, also known as the "Lobster Law" or the "9 in 1" law, because it modified three codes (Penal, Judicial, and Labor) as well as articles of six other existing laws. The base or underlying law has to do with commercial aviation and the first Eleven Articles of Law 177 deal specifically with those issues only. In the days and weeks leading up to the debates and voting by the National Assembly, labor unions, specifically the leadership of the SUNTRACS construction workers, held marches and protests against the parts of the new law that modify the Labor Code as it deals with the right to strike. Articles 12 through 16 of Law 177 discuss these issues, and I have translated them below for your review. Here is a summary of what the law says;
- Workers can still walk out on a legal strike if they have the support of the majority of workers.
- Once a strike has been declared, authorities from the Ministry of Labor will order the deployment of police officers who will be assigned the task of safeguarding people and property. In short, they will be there to enforce the law and keep the peace.
- Business owners are now guaranteed access to their facilities, as well as non striking maintenance, administrative, and managerial personnel, for purposes of non production activities such as maintenance and repair of equipment to prevent damage while the strike continues. Before the passage of this law striking employees would "take over" an entire facility and prevent anyone from entering, for any reason. This has been eliminated.
- Business owners and managers can ask authorities from the Ministry of Labor to verify if the strikers do, in fact, represent a majority of workers. The Ministry of Labor will conduct a headcount and if the striking workers have a majority then the strike is validated and legal. If the striking workers do not in fact represent a majority of the workers then the strike is null and void.
- During a strike, business owners can hire people to maintain equipment and conduct preventative maintenance, however these employees cannot be used for production.
- Regarding Federations, Groups, And Groups of Unions; The law allows for the Executive Branch to constitute a National Workers Board that will consist of representatives from the various union groups and federations that exist, who will act in an advisory capacity. The Executive Branch will also designate who will attend any international labor or union meetings or conferences in places like the UN for example.
Nicking At The Corners: Once again, I see these changes as a minor shift of power towards business owners, and a slight loss of power for labor unions. Workers still have the right to strike and to collective bargaining, their primary weapon. Business owners now are guaranteed access to their plants and facilities during a strike, to ensure their equipment and machinery does not deteriorate during the course of a strike. Employers cannot hire replacement workers during a strike, and they cannot use maintenance or administrative personnel for production. I think these elements simply address some of the concerns and problems that have emerged during recent labor stoppages, and the details of this law certainly do not include all of the extreme measures the SUNTRACS guys were screaming about, when they alleged the law would supposedly "eliminate their right to strike." I covered a SUNTRACS march last week, and their concerns that this new law would eliminate their right to strike were completely unfounded. However, no matter - as usual they just used the issue to get some face time on television, and their leader Saul Mendez was even allowed to speak before the National Assembly. In other words, it was political. The SUNTRACS is now little more than a political arm of the extreme left in Panama, which supports the politics and policies of Hugo Chavez. The full text of the Articles in question follow below, so if you are so inclined you can read them for yourself. (more) Click Here To Read The Full Article (1,457 words)






The Director of INADEH, Temístocles Rosas , said on the Channel 2 TVN morning newscast that Panama has the human resources required for the expansion of the Panama Canal. Rosas said the INADEH signed an agreement to train the personnel required by the Panama Canal in technical areas, and to that end they have also been working together with the Ministry of Labor (MITRADEL). Rosas said the INADEH is keeping the Panama Canal Authority informed and he displayed a matrix showing the types of technicians that are needed, and that the training of these people is underway. Recently INADEH and the "Grupo Unidos por el Canal" (who won one of the primary contracts) signed an agreement to meet the training requirements, according to the academic offerings of the institution, and the introduction of new programs that complement the demand for skilled personnel. An INADEH bulletin states the most sought after positions are: earth moving foreman, electrical line foreman, heavy equipment maintenance foreman, high voltage line worker, carpenters, mechanics, first and second grade equipment operators, plumbers, steel workers, welders, electricians, electrical mechanics, lineman, among others. Rosas said the INADEH has the capability to train Panamanians in different areas, complying with the profile and international certification to provide skilled manpower which will be required by all aspects of the work being done on the waterway. (TVN Noticias)
Union leaders received another barrage of criticism from the Minister of Labor and Social Development (MITRADEL), Alma Cortez. This time, Cortes reported a series of situations that occur within the walls of the unions. And she vowed to solve these problems even if the law needs to be changed. About the National Council of Organized Workers (CONATO) the Minister said they don't do anything and simply spend their time fighting to see who will go to the International Labour Organization conference (ILO) and collect the $15,000 allowance. About the Single National Union of Construction Industry Workers (SUNTRACS), the minister said they have millions of dollars deposited in the bank and that she would verify to see if those funds are being used to train workers. Cortes announced that she has labor auditors available to investigate all unions, if requested by just 10% of the membership. And she said she has received complaints from workers who say they do not receive anything in exchange for their union dues. Genaro Lopez, SUNTRACS leader, said he did not know it was wrong to deposit the union dues paid by their members into a bank account. He said they send quarterly reports to MITRADEL. "This is a persecution." Rafael Chavarria, of the CONATO, said that "this is a dream of the minister" because MITRADEL can not audit anything, it is the unions that have this function. (La Estrella)
About 250,000 workers in Panama will see an increase in their paychecks today, as a result of the new increases to the minimum wage announced by the government at the end of last year, which takes effect as of today, 15 January 2010. However, there are many complaints and doubts. Every company is obliged to pay their employees at the new rates as per Executive Order Number 263, which regulates the minimum wage and specifies what has to be paid according to the type of commercial activity and region of the country. The Ministry of Labor has launched an information campaign using kiosks in shopping malls, where they have personnel working who can explain the charts and tables of the new minimum wage. What's more, anyone who has a question can call the Ministry of Labor at 560-1100 for inquiries or complaints. (Source: Kathyria Caicedo for Telemetro Reporta)

By Kathyria Caicedo for Telemetro - The government was supposed to announce an increase to the minimum wage today, but they decided to postpone the announcement. Currently, the minimum wage is $325 per month. Hernán García Aparicio, the Secretary of the Labor Ministry, confirmed that because the Minimum Wage Commission failed to reach agreement, the government thought it would be prudent to take a little longer to make a decision. According to Garcia, the main goal is to have an increase to the minimum wage that is in line with the country's situation. The decision should be announced before 31 December. In the Minimum Wage Commission, workers represented by Conato submitted a proposal to have the minimum wage increased to $625 per month, while employers say the increase should be to $360 or $370 per month.
By MANUEL LUNA G. for La Estrella - PANAMA. A caretaker of a luxury building and a store clerk could earn a new minimum wage of nearly $420 starting in January 2010. This is with the government proposal to increase the minimum wage by up to 30% for the ten job categories which have registered the most dynamism and financial growth. A total of 243,000 workers currently receive the minimum wage and more than 150,000 of them could receive the increase. But the proposal does not seem to have many adherents. The president of the National Council of Private Enterprise (CONEP), Gaspar Garcia de Paredes, believes that an increase of 30% "is too much." While yesterday CONATO "flatly rejected" the segmentation of activities proposed by the government. Union leader Alfredo Graell argues that the increase should be equal for all, to prevent evasions in business. (Editor's Comment: The government of Panama has been discussing an increase to the minimum wage for months. What remains to be decided is how much, and how it will be implemented. Obviously the business sector wants to pay less, and the workers want more. There will be an increase, probably before the end of the year, but the details are yet to develop.)
Panama America - On Monday, 10 August 2009, Panama's Labor Ministry will hold the official launch of their now "My First Job" program. This program is targeted towards young workers between the ages of 18 to 29. The program aims to benefit 20,000 young workers who are active job seekers, especially those who are having greater difficulties entering the labor market. The government has allocated $11 million dollars to encourage young entrepreneurs during the first year of the program.
By DON WINNER for

By DON WINNER for 