By Jaime Raúl Molina for Panama-Guide.com - We in Panama have a series of artificial barriers created by legislative action, that make it extremely difficult for businesses in the country to hire the services of highly qualified foreign employees. This, instead of benefitting Panamanian workers as is the declared intention, results in a reduced competitiveness for Panamanian businesses in a global marketplace.

A Mistaken Economic View

The view above expressed is a labour policy based on an economic fallacy, that sees job positions as a pie of fixed size, and that the least people there are to share the pie, the greater the specific portions will be for each one. A zero sum game, in sum. However, in a globalized marketplace, it is competitive advantages what makes businesses and economic actors more competitive.   Click Here To Read The Full Article (1,114 words)

By FLOR BOCHAREL in Puerto Armuelles, CHIRIQUÍ for La Prensa - Today, the evaluation commission to define the future of the Multiple Services Cooperative of Puerto Armuelles Fruit Company (Coosemupar) will announce if the only company interested in buying the banana business, Centro de Distribución de Toscana (CEDIT), complies with the guidelines established or not. After the time allowed for the submission of proposals, the lawyer Enzo Polo, who represents the companies Agro K and Boquerón Trading, who withdrew their bids, says that CEDIT is not qualified to participate because it owes money to Coosemupar for fruit sold through the Agricultural Commodity Exchange years ago. In that sense, the national director of Bananas, Roberto Santamaria, said the existing claims between Coosemupar and CEDIT will be addressed in two areas, the claims for current accounts for the purchase and sale of fruit and claims for damaged fruit, that were either not purchased (rejected) or not delivered, but he explained that on these topics there is no pending litigation. On Tuesday the government will make its official announcement on whether the company will manage the banana business, in David at 8:00 am.   Click Here To Read The Full Article (204 words)

By OHIGGINIS ARCIA JARAMILLO for La Prensa - The waiting has ended. The Panamanian government issued an executive order yesterday establishing new minimum wages which will take effect starting 1 January 2010. This measure, which will put more money into the pockets of 250,000 workers, includes classifications into two zones. Zone One - comprised of Panamá, Colón, San Miguelito, David, Santiago, Chitré, Aguadulce, Penonomé, La Chorrera, Arraiján and the District of Bocas del Toro - increases were approved from $33 to $95 dollars per month. In other words, the new minimum wage will increase from from $357 to $416 per month. The rest of the country is in Zone Two, where minimum wages will increase from $31 to $95 per month. This means that the minimum wage will go from $349 to $ 416. For both areas, the minimum wage varies according to activity and occupation. Panama's president Ricardo Martinelli described the increase as "an act of justice never before seen in the past 50 years," however both employers and employees are unhappy with the decision. (Editor's Comment: Obviously, business owners wanted to pay less and employees wanted to get more, which is why both sides are "unhappy." In Panama most people work a 45 hour week or about 180 hours in a month. Even at the highest rate of $416 per month that still only works out to about $2.31 per hour. This increase will put about an additional $15.7 million dollars per month into circulation in the Panamanian economy, and of course employers will now increase their prices to pass additional labor costs onto the public, so expect prices to rise slightly across the board, especially in those businesses such as retail outlets and grocery stores that rely heavily on minimum wage workers.)   

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 Chris Yee for El Siglo - After long hours of discussion, the National Council of Private Enterprise (CONEP) proposed an increase to 15% the minimum wage. The increases could range from $ 6.30 to $ 41.50 per month. Business leaders presented numbers that could take effect starting in 2010, however workers are insisting on an increase of almost 100%. The proposal made by CONEP calls for a minimum wage of $650 per month. Antonio Graell, the leader of the National Council of Organized Workers (CONATO), refuted the figures presented by the business sector. For Graell, there is a sufficient basis to pay a minimum wage above $600 dollars per month. "Next week we will gather and analyze the proposal," he said. According to a CONEP press release, the economy is currently experiencing the negative effects of the international financial crisis, which is holding Panama's economy to annual growth of only 2% to 2.5%, which does not favor the workers' proposal. The workers are betting that the Ministry of Labor review and eliminate one of the three areas they currently govern. Currently the best paid workers are in the construction sector where they make a minimum wage of $1.87 per hour, while the lowest paid workers are in the agricultural sector, earning just $1.01 per hour, the same as that paid by small businesses. The tripartite committee met yesterday behind closed doors starting early in the morning, and they did not emerge to discuss the progress they had made until 3:00 pm that afternoon. The committee members agreed to meet again next Wednesday, 2 December 2009, and if they don't reach an agreement then the final decision will be in the hands of the government. The current minimum wage in Panama is $325 per month, one of the highest in Central America, however monthly basic food costs reach $272 per month. CONATO is asking for a minimum wage of $650 per month. (Editor's Comment: These discussions over an increase to the minimum wage have been going on for a few weeks now, and I suspect the government will announce an increase that will take effect on 1 January 2010. The final number will almost certainly be more than what the business leaders are offering, and less than what the union leaders are asking. No matter what, whatever happens will probably be the largest single increase in the minimum wage in recent history. This is another area where Ricardo Martinelli is following through on campaign promises made during the election cycle.)   

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.)   

TVN Noticias - The labor sector is seeking a minimum wage of $650, a general wage increase and a freeze on prices of basic food, said Rafael Chavarria. The Minimum Wage Commission, which includes representatives of workers, employers and the government, has finished doing the technical study and Chavarria said he would wait until the tripartite commission meeting that will be held in David tomorrow to announce the possibility of reaching an agreement. Chavarria also said the labor sector disagrees with the government over the current level of unemployment. On this point, Chavarria says unemployment stands between 11% and 12% and not less than 10%, which is why he considers that the number cited by the government is not consistent with reality.   

PANAMA (AFP). The jobless rate reached 6.6% in Panama in August, one percentage point increase over the same month last year, according to the Comptroller. According to the Household Survey conducted by the National Institute of Statistics and Censuses, "the overall unemployment rate rose from 5.6% in August 2008, to 6.6% in August this year," said the Comptroller in a statement. Unemployment is higher in urban areas (7.9%) than rural (3.9%) and affects more women (8.9%) than men (5.1%). "In fact just the loss of 2,131 jobs (in the midst of international crisis) according to the survey estimate is minimal," said Minister of Economy and Finance, Alberto Vallarino. Unemployment rose due to the completion of various infrastructure projects in the first six months of the year and due to the economic crisis "that has affected certain sectors," the minister told RPC Radio. According to the survey, the economically active population reached 4.2 million, up 2% from a year ago. The Atlantic province of Colon had the highest unemployment rate (10.4%) and the Darien jungle of the lowest (1.4%) with indigenous areas (1%), detailed the Comptroller.   

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.   Click Here To Read The Full Article (126 words)

By DON WINNER for Panama-Guide.com - On 17 August 2009, a special Minimum Wage Commission, nominated by Panama's President Ricardo Martinelli through Executive Order Number 48 of 4 August 2009, will be installed according to a press release from Panama's Labor Minister Alma Cortés. The commission will be comprised of representatives from the government, private sector, and organized labor and will discuss changes that have to be made in the actual minimum wage in Panama. One of the first things Ricardo Martinelli accomplished shortly after taking office was the elimination of the "third zone" - improving the purchasing power of thousands of Panamanians who live and work in the interior of the country. The executive order signed by Martinelli designates Labor Minister Alma Cortés to preside over the Minimum Wage Commission, which will also include representatives from MITRADEL, MEF, MICI, MIDA, CONEP, CAPAC, and CONATO.   

By: Kathyria Caicedo for Telemetro Reporta - The recruitment of foreign labor is an issue of concern to the authorities, according to Labor Minister Alma Cortés, especially when there are many companies exceeding legal limits. Cortés is considering meeting with business executives from companies such as Odebretch as Copa Airlines, two companies that have more than 10% of their positions occupied by foreigners.   Click Here To Read The Full Article (78 words)

By Gilberto Pérez for El Siglo - A total of 53,417 new work contracts were signed between January to March of 2009, or 3,407 more than were registered during the same period last year, according to numbers issued by the Ministry of Work and Labor Development (Mitradel). At least 18,451 were signed for a defined period of time, 13,980 were for an indefinite period of time, and another 20,959 were to complete a specific project. Apparently Panama is not being effected so severely by the economic crisis that is shaking the world, and everything indicates productivity is robust. Rodolfo Stanziola, the Director of Labor at Mitradel, said a large number of the new labor contracts are coming from the construction sector and in second place, but no less important, from the services sector. “Restaurants, hotels and others are demanding manpower, and the market in that sector is turning," said Stanziola. But everything is not rose colored. Preparation is essential to obtain a good paying job that, at least, covers basic living expenses.   Click Here To Read The Full Article (459 words)

I have been bringing clients to Panama for the past year who are interested in purchasing real estate in Panama. I have over 20 years experience in real estate and project management. I am not ready to move to Panama yet but would like to know how to find consulting jobs for companies in Panama while I continue to live in the United States. There is no problem for me traveling to Panama at any given time. Any networking tips on how to obtain a consulting job would greatly be appreciated.   

Telemetro Reporta - Unemployment in Panama dropped to 5.6% in 2008 according to the Ministry of Labor, and they estimate that in 2009 the Panamanian economy will maintain the conditions necessary to continue to generate new jobs. "One should not fear an apocalyptic scenario because there are conditions to generate dignified and decent jobs," said Labor Minister Benjamin Salamín today, Wednesday, making reference to the international financial crisis. Salamín said unemployment in Panama was at 14% in 2004 and that it has been continuously lowering. "2008 closed with an unemployment level of 5.6% which is very positive - it means approximately 215,218 new jobs have been created in the country," he said. The economic activities that have contributed more to the creation of new jobs are commerce, construction, and tourism among others. The government has said sustained growth of the economy based on public and private investment has allowed Panama's poor access to new jobs. (See Comments)   Click Here To Read The Full Article (448 words)

Skilled employees within the shipping industry could soon be participating in the expansion of the Panama Canal. On Wednesday, Labour and Social Security Minister, Pearnel Charles agreed to support the Joint Industrial Council for the Port of Kingston to recruit an existing pool of port workers for the project. The agreement is expected to help strengthen global trade and expand Government resources available for economic and social development. Mr. Charles also disclosed that he would make a recommendation to Prime Minister Bruce Golding to appoint members of the Council to help oversee the employment process based on their knowledge and experience of the industry. In the meantime the President Elect of the Shipping Association of Jamaica, Roger Hinds said the Shipping Association will continue to play a vital role in expanding the country's earnings by facilitating the entry of skilled Jamaican workers in Panama.    Click Here To Read The Full Article (184 words)

By DON WINNER for Panama-Guide.com - Hiring a maid or domestic employee to take care of the basic cooking and cleaning is one of the advantages of living in Panama. These relationships, in which the English speaking expat is the employer and the maid is the employee, often become a source of problems and conflict. The Panamanian legal system is definitely skewed toward helping the "little guy," and in most cases the American or Canadian employer has many times the money and resources of the maid they hired. As a general rule of thumb all maids are angels on the first day they start working and the devil with a red dress on the last day. There are very precise requirements in Panamanian law regarding what you have to pay your maid and when, and I'm not going to cover all of that again in this article. Rather, I'm only going to focus on what to do when your maid shows up with a notice that you have to appear at a hearing in the Ministry of Labor. (more)   Click Here To Read The Full Article (1,066 words)

By DON WINNER for Panama-Guide.com - Received today via email: "I am a Board Certified, licensed Family Physician in Florida and am interested in moving to Panama. I am not ready to retire and have been trying to find out what the process is for obtaining a license to practice medicine in Panama. I have not found that addresses that question on the Ministry of Health website. Any other suggestions? Thanks." Sorry, but foreigners are prohibited from practicing medicine in the Republic of Panama. As far as I know there's no way around that restriction other than running some kind of a non-declared clinic on the sly or something. There are a few chiropractors, for example, who are doing that kind of thing but it's obviously dangerous - all it takes is one ticked off former patient to drop a dime and you're toast. So, unless you're a Panamanian, you simply can not legally practice medicine here.

Copyright 2008 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

By DON WINNER for Panama-Guide.com - Here is another "class" of email I receive regularly, from people who are vaguely interested in possibly moving to Panama but they really have not done enough homework yet: "I will be considering moving to the David, Panama area next year, and seeking information on what Telecommunication carriers are in the area. Landline or wireless. I have over 25 years in the telecom sector and currently working for Verizon Wireless in Phoenix, Arizona. I would need to get a job there and I wanted to ask if you could pass my resume around to you're many contacts and supply info on the in's and out's of getting established there. Thank You in advance." The basic answer is that it's relatively hard to get a job working for someone else here in Panama unless you're a Panamanian. Most people who need an income start a business and hire people. Panama loves it when you start up a business, and they also try to make sure Panamanians get the jobs first before foreigners. In any case, please feel free to add your comments below, and thanks.

Copyright 2008 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

La Prensa - The national statistics could not be more flattering today, Labor Day in Panama - unemployment is down to 6.3% with all forecasts predicting that number will continue to fall. There less people working informally, with a 5% increase in the number of people hired to work in the industrial section and a growth of 12.8% in the number of people who are newly participating on the active rolls of Social Security. While numbers and statistics are cold, behind them there is a great number of workers who are responsible for the growth of Panama. The challenge now is to take this growth to new levels. (Photo Credit: La Prensa/David Mesa)   Click Here To Read The Full Article (93 words)

By Juan Limachi for La Critica - Popular organizations are asking Panama's government to increase the minimum wage to be better able to face rising costs of living. A wage increase will help the growth of the internal market and will contribute to the increase of the buying capacity of 67% of the young population, said Horacio Rivera yesterday, an investigator of the Institute of National Studies (IDEN.) "The ideal minimum wage should be established at $400 per month. Only with this amount is it possible for workers to satisfy their basic necessities," he said. According to Rivera, the present minimum wage has not been adjusted to the current reality of the high costs of life, and the people finds itself more and more "drowning" because they work only to be able to eat. (more)    Click Here To Read The Full Article (443 words)

By DON WINNER for Panama-Guide.com - Panama's Contraloría General de la República (General Comptroller of the Republic) reported the overall unemployment rate for Panama dropped from 8.7% in August 2006 to 7.3% in May 2007, down 1.4% in ten months. The highest rate of unemployment is in Colón at 11.4%. The Comptroller's office provided comprehensive detailed statistics in their recently released report which tracks unemployment rates among men and women, by age group, by provinces in the interior and sections of Panama City (such as the center of the city and San Miguelito), and breaks out indigenous populations and treats them separately. The lowest rate of unemployment in Panama? In the Darién at 1.5%, mostly because all of the people who live there are working either in their own small agriculture based business or as part of a co-op.

Copyright 2007 by Don Winner for Panama-Guide.com. As usual, go ahead and use whatever you want as long as you credit the source. Salud.   

By Earl Moxam, Senior Gleaner Writer - The (Jamacian) Government is now preparing to seek job opportunities for Jamaicans on the new Panama Canal project. This follows the Panamanian people's decision, in a national referendum last month, to support a massive expansion of the canal, with the addition of a new, "super-sized" lane. This came almost a century after the existing shipping lane was completed, joining the Atlantic and Pacific oceans on both sides of the Central American country. "The Ministry of Labour will be making the necessary contacts so that, if needed, we will be able to send some of our skilled workers to participate in the new project," Derrick Kellier, the Minister of Labour, confirmed in an interview with The Gleaner. Already, said Kellier, officials in his ministry have begun exploring options for Jamaicans participating in the US$5.2 billion expansion project Diplomatic channels - "We are keeping close to the situation and are looking forward to the opportunity, and through diplomatic channels we will be making contacts to make sure that we are up to date with the situation," he said. Ruddy Spencer, Opposition Spokesman on Labour, is also optimistic about the job prospects for Jamaican workers on the new canal project, saying he hopes the Labour Ministry will exploit this opportunity to secure vitally needed jobs for many of skilled but unemployed workers.    Click Here To Read The Full Article (333 words)

(Source) SCOTT MOYERS ~ Southeast Missourian: This is a lot to ask of a job fair: Prove to executives of a St. Louis-based company in eight hours that the local work force can sustain a new call center. Do it and Cape Girardeau can bank on 350 new jobs. Don't and the jobs go elsewhere. That's exactly what local economic development recruiters, city officials and executives at National Asset Recovery Service Inc., or NARS, are asking of the Southeast Missourian-sponsored Career Fair on Oct. 17."I don't ever recall having that much riding on a job fair as what will be riding on this particular job fair," Mayor Jay Knudtson said Monday. NARS, founded by Cape Girardeau native and company president Chris Buehrle in 1993, is considering opening a call center here but company executives have yet to be convinced that the area has a strong enough labor pool. "It's not a done deal," said Mitch Robinson, executive director of Cape Girardeau Area Magnet, a business recruiting organization involved in the project. "They key thing is the availability of workers." The NARS Web site describes the firm as a business process outsource company founded in 1993 as a collection agency. Now the company calls itself a call center outsourcing firm. NARS also has an 1,100 employee facility in Panama City, Panama, and more than 1,000 employees at a center in Montego Bay, Jamaica. Company officials said Monday they were not yet willing to discuss their Cape Girardeau plans. (more)   Click Here To Read The Full Article (403 words)

(Source) The Panamanian Institute of Professional Formation and Qualification for Human Development (INADEH) will train more than 200,000 Panamanians through a new and extensive training program to help prepare for the expansion of the Panama Canal and other economic programs. These training and skills qualification classes will be free to the participants and will be paid for by the Panamanian government. This program was presented by the Director of the INADEH, Juan Planells, who clairified that this is a training and skills preparation program, and that the people who complete these courses will be better prepared for jobs and will have a greater chance of finding employment with the companies that will be coming to Panama to build the expansion of the Panama Canal and other major projects. "Once students are well trained and have graduated from these courses then we will make a list of graduates available to the companies that will be needing skilled labor in specific areas," he said.   Click Here To Read The Full Article (515 words)

The number of job applications sent to the Panama Canal Authority (ACP) had doubled to 5,200 a month since April 24, when Panamanian President Martin Torrijos announced the Canal widening project, the ACP said on Tuesday. Ana Maria de Chiquilani, the ACP's human resources director, said most applications had come from electricians, drivers, welders and cablemen. She said there were also significant numbers of applications from civil engineers, technicians and computer specialists of various grades. The ACP has currently received more than 62,000 applications, more than 32,200 of which meet the job specifications. At present, the canal project mostly needs temporary workers, welders, riggers, mechanics, cablemen and assemblers. The ACP will choose and recruit staff in line with the organizations' needs and the progress of the canal widening project, the director added. Panama is set to hold a public referendum in October on a 5.25-billion-dollar plan to enlarge the canal to accommodate new, super-large cargo ships. Some 13,000 ships pass the 77-km canal a year, 5 percent of the global maritime market. Source: Xinhua    

The Ministry of Labor announced an 8% hike in Panama's minimum wage yesterday. The new rate is $285 per month, up from $263 per month. According to the Minister of Labor Reynaldo Rivera, the hike represents a $.10 per hour raise for workers and would total $35 million dollars per year. He said that on 1 July 2007 pay rates for public employees who are making less than the new minimum would be adjusted, which would cost the government $16 million dollars per year. Labor leader (SUNTRACS) Genaro López said "this is very far from what workers need to live adequately." Business leader (APEDE) Enrique de Obarrio said the hike is reasonable, and that it establishes a mechanism for periodic review based on several factors, including productivity.   Click Here To Read The Full Article (543 words)

The Commission of the Minimum Wage has been discussing what to do for eight months. So far there has been no movement or decision, but some business leaders have fixed their sights on a 4% wage increase. According to Antonio Fletcher, a representative of National Council of Private Business (CoNEP), a 4% hike in the minimum wage would be fair and substantiated by steep increases in prices and inflation that have hit the working class hard. The current minimum wage in Panama is $263.76 per month, and a 4% increase represents an additional $10.55 per month.   Click Here To Read The Full Article (985 words)

The fight that started between the National Council of Organized Wokers (Conato) and the National Confederation of Independent Union Unity (Conusi) that started over the social security reform debate has continued with a disagreement over proposals for a hike to the minimum wage. Rafael Chavarría, of Conato presented a plan to raise the wage to $526.19 per month until the year 2009, and Genaro López of Conusi set the number at $638.33. Private business representatives have not entered the debate yet.    Click Here To Read The Full Article (124 words)

Miami-based Carnival Corp. has grown into the world’s biggest cruise vacation company through savvy marketing, creampuff U.S. tax laws and inexpensive labor recruited from poor nations around the world. Carnival’s crews work 10- to 16-hour days, seven days a week, many of them primarily for tips. The company avoids U.S. corporate income tax and labor laws — and posted profits of $1.8 billion last year — because the company is incorporated in Panama. And while ferrying North American passengers to exotic ports of call, it strikes deals with vendors to keep a share of the money customers spend onshore.    Click Here To Read The Full Article (1,051 words)