Labor Minister Alma Cortez acknowledged an error occurred when the new minimum wage was established for workers in the wholesale and retail industries, but she said the error was later corrected through Executive Order 241, which established the correct minimum payment for these workers. Executive Order 240 established that the new minimum wage for wholesale and retail workers was to increase by 18%, when in fact it should have been raised by 15%, so the next day the error was fixed with the issuance in Executive Order 241. Cortez reiterated the Government does not want to have to intervene again in the minimum wage adjustment that will take place in 2014, when the next increase will occur.

Meanwhile, union leader Genaro Lopez said when the adjustment to the minimum wage was announced, there was a reduction for grocery workers who had a salary of $214, but now it's $208. According to Lopez, this contradicts the provisions of the Constitution, because the minimum wage cannot be decreased and they will file a lawsuit against Executive Order 241.

Meanwhile, businessman Roberto Lombana does not like that the government does not want to be part of the procedure to establish a new minimum wage, because it should be a consensus among the three parties. At the same meeting, the private sector presented a proposal for a reclassification of the minimum wage for workers in clinics and hospitals. It was learned the issue will be addressed at the next meeting, where representatives of the Union will be present in hospitals and the private sector. (Panama America)

   

By DON WINNER for Panama-Guide.com - Received this morning via email: "Evening Don: I have been looking to relocate to a spot where there is work and better climate. I noticed your bio and the piece you had drafted about the canal expansion, sounds damn interesting on this end. My background is well rounded as I grew up on a small coastal farm and was raised by folks who owned small business's and developed land. Business experience, includes heavy equip. operation and management, all excavation techniques that include large civil projects, purchasing, contract negociation, fuel distribution and regulations that pertain to that industry, and road construction and all steps to perform mass excavation, logging, clearing, drilling rock, drainage ect. I have a valid passport and am clean cut and 53 years old and in good health. Oregon where I reside is in severe depression and I am looking to produce elsewhere. I am fairly well traveled.....If you get a minute let me know how things look for employment down there.... With respect, KH."

Please Stop Asking Me About Jobs: I know there are a lot of people in the United States who are unemployed. I know there are all kinds of articles on this website about how many jobs there are here in Panama. But, this is a news operation, not an employment agency. I receive email like this frequently, and I never answer them. If you want to investigate employment opportunities in New York City, would you write an email to the editor of the New York Times? Of course not. You would look for companies that are hiring, and talk to them. You should do that. Remember, Google is your friend. And, I'm not going to be doing any web searches for anyone. So in summary, don't start your job search with me, because it won't go anywhere.

Copyright 2011 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

With the increase to the minimum wage of between 15% to 18%, agricultural producers and entrepreneurs predict they will have to implement staff reductions in order to cope with the higher wages they will have to start paying their workers on 1 January 2012. Virgilio Saldaña, president of the Manufacturers Association of the Highlands, considers the increase to the minimum wage approved by the government on Wednesday to be just, but he said the increase does not come at a good time considering that the agricultural sector is "in trouble." According to Saldana, the new minimum wages set by the executive 'will jeopardize many jobs', as many producers will have to make adjustments in spending.

CONCERN: Employers will reduce to some extent their ability to create jobs, said Saldana, who argued that the highlands of the province of Chiriqui generates about 6,000 direct jobs in the agricultural sector. "It is unfortunate that while (the wage increase) is beneficial to some employees, others must be sacrificed," he concluded. Saldaña's opinion is shared by the president of the National Association of Micro and Small Enterprise, Gloriela Quintana, who said small business owners will have to implement layoffs in order to deal with the increase in the minimum wage. In the agribusiness sector, the increase was 15%. Right now hourly wages are from $1.08 to $1.16, and after 1 January 2012 those will increase to $1.22 to $1.43 Zones 1 and 2, respectively.

The Increase is Not Enough: Edgardo Voitier, assistant secretary of the National Federation of Public Servants (FENASEP), said raising minimum wages by 15% to 18% does not even cover the increases to basic food costs. Voitier, who was part of the Minimum Wage Commission on behalf of the National Council of Organized Workers (CONATO) as an alternate, questioned the Executive's lack of interest include measures such as freezing of food prices in the decree authorizing the increase. He said this was disrespectful to the workers of public institutions who also pay food bills, electricity, housing, among others. According to Voitier failing to regulate the prices of basic goods will cause the increase to be not noticeable, because businessmen are free to set prices as they see fit.

Payroll Will Increase By $300 Million Dollars: The business leaders represented in the Chamber of Commerce, Industry and Agriculture of Panama (CCIAP) expressed concern over minimum wage increase in a statement. Federico Humbert, president of the union, explained that an increase of 15% will cause an increase in private sector payroll of $300 million more a year. The employer complained that the government did not take into account the issue of productivity proposed by the CCIAP, which proposed that the most efficient workers should earn more. Executive Decree 240 approving the minimum wage increase that will govern for the next two years, estimates a scale between $411 and $490 the maximum. The Government's decision left both the workers and businessmen disgruntled, and both think the increase was unjust. (Siglo)

Editor's Comment: That $300 million dollars is going to come from somewhere, and it's not just going to materialize out of thin air. On one side of the equation businesses will certainly reduce the size of their workforce somewhat to keep their payroll in line. On the other side of the equation businesses will all increase their prices to generate the additional cash flow necessary to pay the higher payrolls. About one third of the Panamanian work force gets paid at the minimum wage level. So, you can expect this increase to add to inflationary pressures in the near future. Generally speaking, prices will go up, pretty much across the board, for just about everything.    

The Executive yesterday approved a minimum wage increase of between 15% and 18%, according to economic activity, occupation and size of companies around the country. The monthly wage of a worker will increase to between $432 and $490 per month. Today the minimum wage is between $376 and $416. The the minimum wage will take effect on 1 January 2012, according to the Executive Decree approved yesterday in the Cabinet and published in the Official Gazette. The new layout brings into Region One - where higher wages are paid - the districts of Capira, Chame, Antón, Natá, Las Tablas, Bugaba and Boquete, which had been in Region Two. Union leader Rafael Chavarria said the increase does not meet the expectations of workers, who demanded $540 per month. Anthony Fletcher, of the Panamanian Association of Business Executives, said the increase is higher than that proposed by the business leaders, and it does not correspond with productivity. For his part, the President of the Chamber of Commerce, Industries and Agriculture of Panama Federico Humbert Arias, said the 15% adjustment would create an increase of about $300 million dollars per year in payrolls throughout the country. And this does not take into account other additional or subsequent increases that will take place within companies. "It is a 'thrust' against the micro and small enterprises, an important part of the engine of our economy," he said. (Prensa)

Editor's Comment: As expected the union leaders wanted more and the business leaders wanted to pay less. This increase basically splits the difference and more than makes up for the increases in cost of living due to inflation (at about 10%) so it also should add somewhat to the true spending power of the poorest Panamanians. This article fails to point out that the true cost of having an employee in Panama is actually about twice the stated wage, once you add in additional expenses for Social Security payments, mandatory vacation time, paid holidays, maternity leave, and the "13th month" bonuses. So, if you're a businessman out there making your plans and doing the math, start with the monthly minimum wage, double it, and multiply times 12. That's about your annual cost per employee. And of course that will be higher if you need skilled labor or anyone who can demand a higher wage, someone who is bilingual, high school or college graduate, skilled in just about anything, etc.   

By DON WINNER for Panama-Guide.com - The government of Panama has finally been forced to take the gloves off when it comes to their efforts to hire more drivers for the ever expanding Metro Bus public transportation system. Starting in February 2012, Metro Bus drivers will receive a monthly base salary of $680 - representing an increase of $100 over the current base. The government is expanding the system and deploying new buses as fast as they arrive in the country, as they take the old "Red Devil" buses off the streets. They have been having problems attracting drivers to take the bus driver jobs because Panama's economy has been red hot and expanding steadily, creating a stream of new and better paying jobs. Simply put, anyone who can drive a bus can usually get a better paying job driving something else. The drivers also get other incentives for performance, arriving on time, avoiding problems on the road such as accidents, and the like. This inability to hire drivers is representative of the broader problems in the labor market in Panama, where there is an abundance of new jobs but a shortage of skilled personnel to fill them. This new wage will put the bus drivers at about $200 per month - or about 45% - above the new minimum wage. On a side note, the government of Panama is paying a $25,000 dollar "severance" payment to the owners of the old "Red Devil" buses for each vehicle that is taken off the road.

Copyright 2011 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

The new minimum wage in Panama City will be about $470 per month, said a source close to the talks. It now will fall to the Executive Cabinet Council to set the new minimum wage salary in their meeting to be held today, after a commission of businessmen and worker's organizations failed in their attempt to reach a consensus decision. Today, the last scheduled Cabinet meeting of 2011 could establish the new minimum wage that will be in effect for the next two years. Yesterday, President Ricardo Martinelli announced that the increase might be about 15%, taking into account increases in the cost of living of between between 10% and 12%. (Siglo)

Editor's Comment: In the last couple of months there have been meetings of a special commission that was supposed to try to reach a mutual consensus. Obviously the union leaders were asking for way too much money and a massive increase in the minimum wage (and that was not about to happen) and the business leaders proposed a much lower increase - while in reality they don't want to pay any higher wages at all. In the end it now falls to the Executive Cabinet Council to make the final decision, and that will be that. This issue comes up every two years.   

There will be an increased demand for workers in the trade, construction, telecommunications and transportation sectors in the first quarter of 2012. This is the picture revealed in the Manpower Survey of Employment Outlook, which places the Net Employment Outlook at +24%. The results for the next year place Panama as the second country in Latin America after Brazil (in terms of growth), with positive projections on labor. Despite these good prospects, the country has its Achilles in the subject of manpower, because there is a shortage of qualified personnel to fill the spots of jobs that are being created. This situation causes the international companies who settle here, and who often face a shortage of the human resources they need, to have to bring staff in from other countries, said Eric Quesada, the Regional Director of Manpower.

31% of the 628 Panamanian companies surveyed said they plan to increase their workforce next year, 7% said they plan decreases, and 61% said they are not planning to make any changes, and the remaining 1% said they don't know. "Today there is a major challenge for companies to find staff, and this is particularly true for specialists. The foreign population is growing, people who come to occupy those positions that cannot be filled with local talent," he said. Quesada added that the current rate by the year 2025 about 25% of the population of Panama will be foreigners. For example, in his experience, there are more customers who are asking for foreign employees, however there are limitations in local law. The trends for increases in hiring are located in Panama City with +29% and the province of Colon at +28%.

For his part, Francisco de Ycaza, the President of the Panamanian Association of Business Executives (APEDE), said there is a need to train staff in Panama, but said they are working on that. The businessman said the importation of professionals should not be seen as a threat, since the measure would help to increase the country's internal preparation and there will be a greater fluidity of knowledge.

Meanwhile, Juan Planells, the Director of the Foundation for Economic and Social Development of Panama (FUDESPA), explained that the lack of trained personnel is obviously a problem for the country's sustained growth. He noted it would be ideal for companies to acquire their human resources here, since the aim should be that the riches are for Panamanians. He acknowledged the issue of education is a long-term problem, it is necessary to develop technical courses that train specialists, but also to promote values ​​such as leadership, responsibility and attitude. He added these elements are the keys to success for the workers. (Panama America)

Editor's Comment: And the situation I've been predicting for at least three years now is becoming reality. Panama's economy is creating more jobs than there are Panamanians trained to fill them. The government of Panama will eventually have to loosen the laws that restrict employment by foreigners. I would suggest special one year contracts - package deals that include both immigration and work permits on an as needed basis, renewable as long as the economy continues to kick ass. There are millions of people in the United States, for example, who are currently unemployed who would be more than happy to come down here to work. The problem (for them) is that the wage scales are not up to US standards. There's much more of a flow of foreign labor from places like Colombia and other Latin American countries whose economies are not kicking ass as in Panama.   

On Wednesday, 14 December 2011, business leaders in Panama presented their proposal for a new minimum wage, an increase of 7% over the current minimum wage, announced the group's representative Roberto Lombana. This proposal would raise the minimum wage in Panama to between $402 to $445 dollars per month. With this proposal workers who are currently receiving $376 per month (the lowest wage in the scale) would receive $402 per month, and those receiving $416 would receive $445. The representative of the business leaders on the commission said the proposal has been well studied and is consistent with the reality of the country. However, he said they are willing to continue negotiations.

REACTION - Rafael Chavarria, of the National Council of Organized Workers, said the workers reject outright the proposal presented by the business leaders. He added that the proposal put forward by the labor leaders - asking for an increase to $540 per month - is not debatable. For his part, the Deputy Minister of Labor and Workforce Development, Darius Falcon Piraquive, said both sides have until 20 December to reach an agreement. Otherwise, the Executive will set the new minimum wage salary that will go into effect in January 2012, the official said. (Prensa)

Editor's Comment: The negotiations to determine a new scheme for minimum wages in Panama continues. A 7% increase might sound like a lot, but inflation has been running at around 5% so it's really not much of a tangible increase, and rather just enough to keep pace. In these kinds of things you can just about split the difference - expect the bottom line to come in at about $460 to $480 or so, I bet. More than what the business leaders are proposing and less than what the union leaders are demanding.   

Everything indicates it is the Executive branch that will finally decided on a new minimum hourly wage rate, as calculated by the Comptroller General of the Republic, which will affect about 400,000 workers in Panama. Labor leaders yesterday proposed that the minimum wage - which is now at $416 per month - be raised to $540 per month. Businessmen (employers) preferred to treat the issue with caution, however they have announced that they oppose the implementation of a so-called "single zone" for the entire country. Meanwhile, the Minister of Labor and Workforce Development, Alma Cortés said she hopes that the various sectors in the National Minimum Wage Commission agree and reach a consensus, no later than next Thursday. (Estrella)

Editor's Comment: OK, so about 400,000 workers in Panama are making minimum wage. There are about 1.5 million workers in Panama - a measure of the total workforce. So therefore, the other 1.1 million are making more than minimum wage. And of course there are others who are "off the books" working in the "gray" labor market and it's hard to tell exactly what those people are earning. The total labor force - now at 1.5 million people - is growing daily as the economy continues to expand and new jobs are added. Every year X number of people retire out or leave the labor market for whatever reason. Y number of kids graduate from high school or college and enter the labor force and Y > X. Add to that Z number of people (foreigners) who immigrate to Panama in search of jobs and opportunity. But that ratio - about one third making minimum wage and about two thirds making more - is interesting.   

The Minister of Government, Roxana Mendez and the Administrator of the Authority For Urban and Household Cleanliness, Enrique Ho Fernandez, signed a cooperation agreement today. This agreement will allow prison convicts to pay their sentences through community work as garbage collectors. Inmates must meet certain requirements to be allowed into the program. This agreement will also serve to educate the inmates on the proper handling of solid waste in the La Joya and Joyita prisons. The agreement contemplates the possibility that inmates who participate in the project, once they finish serving their sentences, might be hired by the AAUD. (Critica)

Editor's Comment: Reality on the ground - the AAUD is having problems recruiting and retaining garbage collectors. The pay sucks, the work sucks, and there are plenty of other jobs available. So now the government is literally dipping into the prisons to fill positions, to get the convicts to do the work that no one else will do.   

Unemployment in Panama fell to 4.5% in August 2011, a decrease of one percentage point compared to the most recent measurement of 5.6% in March of this year, said on Thursday the Ministry of Economy and Finance (MEF). The report notes that in rural areas the unemployment rate fell from 3.9% to 2.4%, and in urban areas unemployment fell from 6.4% to 5.4%. The August 2011 unemployment rate is the lowest in at least the last four decades, said the Department of Social and Economic Analysis of the MEF, based on information from the National Institute of Statistics and Census. The report mentioned that the second lowest unemployment rate recorded to date was a 5.1% in 1966. Panama has an economically active population of about 1.5 million people. (TVN)

Editor's Comment: In fact Panama has already reached a "practical level of zero unemployment," meaning that there are many more jobs available than there are people to fill them. These people who are currently unemployed are basically unemployable for several reasons. Either they have little or no formal education, they didn't finish school or are practically illiterate, they have some kind of problems with addiction to either alcohol or drugs, or have a long criminal record. On the other hand, salaries for those people with highly sought after skill sets are quickly rising as employers face more and stiffer competition to find and retain valuable employees. A smart, educated, bilingual manager who is capable of handling almost any situation can practically name their price. The government of Panama is now scraping the bottom of the barrel so to speak, and twisting people's arms to get them to attend some kind of training class to improve their hire-ability. Panama's economy keeps chugging along, growing at a rate of 8.5% this year (at least), so even more jobs are being created as we speak. Sooner or later Panama will be forced to (gently) allow foreigners to come here to work, or risk slowing the economic engine due to a lack of skilled manpower. This unemployment rate of 4.5% is the lowest in modern recorded history.   

By DON WINNER for Panama-Guide.com - I receive these kinds of requests all the time, like this one that came in via email today: "I was glad to find your web site , a friend told me they are needing welders and heavy eqpt. operators to work on the canal project but I am unable to find out how to get hired on there would you please help me in this mater , I have a fifty foot live aboard that I wish to bring there to live on mabe at a later date and I need to know if that is possible as well, Thank you for your help on this matter. JT." Unfortunately I don't run an employment agency and I really don't have good contact information for the companies who are building the expansion of the Panama Canal. People are just lazy sometimes. They do a quick Google search on "Panama," find my website, and ask me if I can help them get a job in Panama. Some even send me resumes. Well sorry folks, there are simply way too many complications that come with a foreigner from the United States or anywhere else who wants to come to Panama to work on the Panama Canal. If they would just take five more minutes to do a better Google search, they would be able to find out the names of those companies, contact them, and find out how to submit a resume. However, I don't do web searches for anyone but myself. These kinds of requests always go unanswered, so you can stop sending them. I mean, keep reading the website, but you're going to have to find your own job. Good luck.

Copyright 2011 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

#Panama - The Panamanian labor market is experiencing a dilemma: there is not enough manpower to work in tourism, technology and communications, construction and financial intermediation, among others. A study by the Research Department of Employment, of the Ministry of Labor and Workforce Development (MITRADEL) realizes it. It also reveals that by the end of this year and in early 2012, more than 11,000 new workers will be required just in the hotel industry. Samuel Vargas, the General Manager of Jobs at MITRADEL explained that just last week they intervened to allow 700 people to be admitted to work on the expansion of the Panama Canal, and by January of next year there will be a need for 2,500 new workers for the new Metro subway system. "The real work on the Metro system will begin in January," he said.

Vargas said that the country companies are having problems because there is not even labor available for such activities as drivers or general assistants. "We have to continue training to meet the high demand," he said. MITRADEL data reveal that in the last job fair held at the Roberto Duran gym on 12 October 2011, more than 100 companies had 14,900 jobs to fill, but the fair was attended by only 5,000 people.

Rafael Chavarria, coordinator of the National Council of Organized Workers, believes that formal education in the country is not doing its job. "The professional and technical institutes should be given more resources, since that is the labor required," said the union leader. He added that the workforce could be trained in the National Training Institute for Human Development. (Prensa)

Editor's Comment: Did you catch the buried headline? The Ministry of Labor "intervened" to allow 700 foreign laborers enter the country in order to work on the expansion of the Panama Canal. However they didn't actually say that in the article. They don't want to say it. The government of Panama doesn't want to admit that they can't get Panamanians to train up to fill these jobs, so they are very quietly allowing foreigners in, but only when the employers start screaming at the tops of their lungs. I've been preaching this for years. The Panamanian economy continues to grow and expand, meaning more and more jobs are being created all the time. This year growth of more than 10% is expected. However the manpower pool is already stretched thin. The government has been applying band-aid fixes, but pretty soon they are going to have to call out the big guns. Meaning, to loosen up the rules for foreigners to come here to work. And when Panamanians start bitching the answer should be "Do you have a job? If so, then what are you complaining about? If not, here's a list of 9,000 jobs we need to fill. Pick one, and we will train you to fill it. Everyone else with a political agenda, pound sand." And by the way, a road-trip to Panama for every elected politician in Washington DC should be a mandatory assignment. They should have to write a paper that answers the question "What is Panama doing right, and what do we need to change in order to be more like them?"   

With the growth of the aviation industry in Panama, there is a need for a large number of pilots, and faced with this fact, the INADEH and Copa Airlines signed a training agreement worth $2 million dollars. According to the CEO of Copa Airlines, Pedro Heilbron, "due to a lack of financial capacity, young people don't study to become a pilot because the degree costs about $60,000 dollars." "This training program aims to close that gap for young people who have the vocation to be pilots," said Heilbron. (Critica)

Editor's Comment: About a week ago I spoke to a couple of American pilots who had been recruited by Copa Airlines to come down here to fly for them. Copa currently has a significant shortfall of pilots. According to the guys I spoke to, Copa is one of the worst paying airlines and therefore it's hard for then to retain the qualified pilots they already have. As soon as young new pilots get certified, once they have some experience, they take off (har) for greener pastures and higher salaries in other countries. So now Copa is being forced to recruit pilots from other countries like the United States.   

By DON WINNER for Panama-Guide.com - This morning Roberto Henriquez, Panama's Minister of Economy and Finance, sent via his Twitter account - "Unemployment in Panama is at 5.6%, the lowest rate in 45 years. Together we will resolve the problems of health and education." The unemployment rate in Panama continues to fall and in fact I don't really trust this 5.6% number because I think in reality it's even lower. Large business owners and employers will tell you they are having more and more problems finding qualified workers to fill the positions already available. Both the government and private entities are working hard to "train up" those Panamanians who are ready and willing to work, but who lack a skill set that would allow them to enter the labor market. Like, a short course in welding and presto- there's a new welder. In three years he will be a relatively experienced welder. The unprecedented growth in the Panamanian economy will continue to generate additional revenue for the government, which they can spend to fix the problems of health and education mentioned by Minister Henriquez. And of course the headlines today are dominated by the issues of the killer antibiotic resistant bacteria in the Social Security hospital (health) and the teacher's strike (education.) Is Henriquez sounding presidential yet? He's already running for president in 2014, although he has not formally announced the start of his campaign.

Copyright 2011 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

The growth of the Panamanian economy and labor market is a fact, and there are serious problems getting local talent to fill the vacancies being generated by the economic development. That is the general conclusion reached by the participants of the forum "Education: Pilar for the labor market," organized by Corporación La Prensa SA as part of the editorial "Education, priority: 1", sponsored by the La Prensa newspaper, to draw out the weaknesses and potential of the system from its genesis, as a contribution to the debate in which the country is immersed. "It takes passion, and for the Panamanian to see competitiveness. That Panama is the center of the world is a lie, the world is round, anywhere can be the center; we were lucky enough to grow but we need people to give us height, otherwise we will not grow; we need to continue strengthening education," said Carlos Urriola, general manager of Manzanillo International Terminal, one of the panelists.

Martin Alvarez, general manager of Dell, went along the same line. "Panama has been a victim of its own success." Alvarado acknowledged that his company has grown along with the country over the past eight years, generating thousands of jobs with service centers and many others with jobs that require a lot of expertise. They expect to create about 500 more jobs, Alvarez said, adding it is difficult to find talent to fill those vacancies.

Representatives of three companies who were invited to the forum agreed that part of the investment they make is focused on preparing employees and they were forced to move into training to tackle problems such as lack of a secondary language and / or specialized training. The problems we are facing now, they said, is that some employees, after being prepared, leave their companies to take a better deal.

Training in Values: There are other things important to the professional development of a person. That was the approach of Ivan Cohen, CEO of Do It Center, another panelist. "If a person was on the honor roll in mathematics, it is also important that the person has the values ​​to take care of a customer, that's the other side of education ... Education does not end when you leave school, it ends when you stop living," said Cohen. The businessman is concerned that education is not limited to 10 years in schools, the moral foundations a person takes at home is invaluable, and part of the problem is that not all parents are prepared to give that training: we need to educate parents so they know how to react, proposed Cohen.

Meanwhile, Juan Planells, director of Foundation for Economic and Social Development of Panama, which encourages and promotes the program United for Education, said he shares the opinion of the Minister of Education, Lucy Molinar, who said education should not be left totally as the responsibility of the government. "We are the envy of the other countries in the region; in the last 10 years we are the country with the fastest growing economy (6%), and growth this year will surpass 8%, which looks to be on the rise" explained Planells. The entrepreneur and former director of the National Institute of Vocational Training for Human Development also reflected on competition as being a good thing, and we should use this situation so that Panamanians learn how to overcome. In fact, he said when the Panama Canal was built only 1.2% of the workers were Panamanians, however, for the expansion of the waterway is currently running with more than 90% of the workforce Panamanian.

Planells also brought worrisome examples. He said that the results of students Panamanian students compared to those from other countries or neighboring countries is shameful, as evidenced by the most recent regional testing (PISA), in which the country was ranked 63, 64, and 65 out of the 65 countries that participated. "The results are frustrating," he said. (La Prensa)

Editor's Comment: When students talk about about a problem such as the shortage of a labor force due to an expanding economy that's creating more jobs than the population can fill, they stupidly always come back to education as the solution. No, having more babies 18 years ago would have been the solution but that didn't happen, so now we have to do something else. The Dell guy hit in on the head. They are forced to train people up, and once they are prepared and experienced they leave Dell to go get a better (higher paying) job somewhere else. Err, did you ever think of raising their salaries so they would stay at home? That's the other thing companies have to do - pay their educated and trained and experienced employees what that are worth. If not, they will go elsewhere. Multinationals move to Panama because of the cheap labor force. Panama has all kinds of other things working in its favor - if you want millions of cheap bodies go to India. Anyway, no matter what, education by itself will do little or nothing to fix the fundamental, underlying strategic problem of not enough dudes to do the work. Really, it won't. If you train a construction worker how to fix computers he will just go get a better paying job in an air conditioned office fixing computers. But his moving to the new and better paying job thanks to the improved education simply opened up a job t the construction site. So one dude is making more money but the construction work isn't getting done due to a simple lack of dudes. It's a zero sum game. I bet no one at this forum said "get more dudes" or "relax the restrictions on labor laws for immigrants" or "allow foreigners to work in Panama." That simply has to happen, and I've been predicting it for years. Sooner or later the market will simply demand these changes. It's unavoidable.   

During the first half of this year there have been 42,487 new hires in the construction sector, representing 36.3% of the total new jobs created in this period in Panama City, of a total of 116,770 jobs. The information was provided by Fabricio Finch, head of Statistics at the Ministry of Labor and Workforce Development (MITRADEL), who said the construction sector is characterized as the largest generator of new jobs. According to statistics, the month of June saw the most new hires with 11,291 while in January there as the fewest with 4,359. Of all workers employed in the first half, 33,797 are men representing 80% of contracts and 8,000 were women. The activity of the companies that have opened new offices in the Panama Pacific Special Economic Area (AEEPP) and the expansion of the Panama Canal with about 6,000 contracts have been the major generator of jobs in construction during this semester. Finch recalled in previous years, the sector generating the most jobs were trade, but this year it has been dominated by the construction industry due to the mega projects being developed mainly in the city of Panama. This report does not include the generation of jobs due to the construction boom of tourist hotels on the beaches of ​​the interior. Manufacturing created 12,164 new jobs, and trade created 12,217. According to MITRADEL records, hotels and restaurants created 11,460 new jobs and real estate 11,173. Michael Fernandez, Economic Advisor (CAPAC), recognized there is a shortfall, but that improved over the course of the months in hiring labor. (El Siglo)

Editor's Comment: Holy crap. According to this article the tiny economy of Panama created 116,770 new jobs in just the past six months. That is an amazing number, when you consider the entire workforce of the Republic of Panama is only estimated to be about 1.557 million people. Therefore, 116,770 new hires would represent 7.49% of the entire estimated labor force. The unemployment level for 2010 was 6.5%. If these numbers are true and accurate, unemployment should now be at -1%. Full employment, plus some. The only way to work this magic is if some people who were identified in this report as "new hires" actually left other work or positions in order to fill these new contracts. The details of the numbers don't really matter all that much. What does matter, on the other hand, is that Panama's economy is estimated to grow at about 8.5% this year. A growing economy creates new jobs. And without a doubt the labor force is drying up, running out - approaching full employment across the board. Very soon employers will start to feel the pinch. They won't be able to find qualified people to fill the positions they have open. Employers will then start to do several things. They will hire illegals to work for cash and under the table. They will increase pay to entice qualified and experienced employees to leave one company to come work for them. And, they will begin to ask the government of Panama to ease restrictions on foreign workers. And obviously, these restrictions make no sense in an economy that has reached full employment. I've been predicting this for years, and now it looks like we're getting closer and closer to the "tipping point."    

The president of Panama, Ricardo Martinelli, on Wednesday encouraged Spaniards to come to Panama to work because there is "full employment." A note from Europress adds that Martinelli said "but Panama lacks skilled manpower for the many infrastructure projects the government is undertaking, plus the expansion of the Panama Canal." Martinelli said "Panama is a country of opportunities," during a speech given at the New Economy Forum, highlighting the numerous ongoing projects in the country, both in the infrastructure as well as in sectors such as tourism and energy. He noted that although there is "full employment" their country, Panama "needs a lot of professionals," such as engineers or in the future "doctors and nurses" because they are building five new hospitals. In this regard Martinelli said during his meetings with the King and the Prime Minister of Spain, José Luis Rodríguez Zapatero, he proposed to "unilaterally" and without asking anything in return for an agreement under which "any Spanish citizen who has been living in Panama for more than one year shall be eligible for citizenship." This could be especially useful considering that by law, the State requires that 90 percent of workers in companies in the country be Panamanian, although according to Martinelli this is "more of a problem on paper but in practice there is a lot of flexibility." (TVN Noticias)

Editor's Comment: Holy crap. The government of Panama is getting desperate for labor. This article is a diplomatic form of begging. The government will now begin to offer even more incentives and create initiatives such as this to lure and retain skilled labor from around the world. Notice - they don't want or need unskilled labor but if you have a degree then come on down.   

The approval of an Executive Order to grant temporary work permits to foreigners is not being well received by the labor unions, who say the government must first guarantee the jobs for Panamanian nationals. With the decree approved last Tuesday in the Cabinet Council, about 11,500 foreigners whose immigration status was recently regularized by the National Immigration Service could have the opportunity to enter the labor market in Panama. Minister of Labor and Workforce Development, Alma Cortez, said this permit, which will have the same validity as the card issued to normalize the immigration status for two years, will have an approximate cost of $500 dollars. A percentage of the revenue collected will be used for social projects.

"They (the National Immigration Service and the government) have regularized the status of many people who were illegal before, and his decree establishes possibility that these foreigners have access to decent work and dignity," said the head of Labor. Now, said Cortés, these people might have the income to sustain themselves and retain the services of attorneys who handled their legal status in Panama. She said she will send a letter to the Minister of Economy and Finance, Alberto Vallarino, to open an account on behalf of the National Treasury, which will be used to allow foreigners to buy their checks and pay for the permit.

According to Rafael Chavarria, of the National Council of Organized Workers (CONATO), the granting of work permits to foreigners is worrisome, because every day there are more foreigners working, which goes against the Panamanians. "They should comply with the provisions of the Code of Labour ... there can be no more than 15% of foreigners working in a company," said Chavarria. Meanwhile, Genaro Lopez of the National Confederation of Independent Unions, said that first they should ensure work for Panamanian nationals. Immigration has held, since last year, six extraordinary sessions to regularize the immigration status of thousands of foreigners, called "Panama, melting pot." (Panama America)

Editor's Comment : I told you so. As part of this process Immigration has only processed 11,500 people. That's nothing considering the growing demand for qualified labor in Panama, and the fact that many of these people are already working, in one form or another, somewhere. Maybe half of that number, less than 6,000 will actually enter the work force to take "normal" jobs on a payroll at a company. This is a first step, and eventually Panama will have to take even more to crack open the labor market to foreigners. Was that CONATO dude right? I thought it was 10% - but he said 15%? Did something change and I missed it?   

There are about 6,000 jobs available in the different hotels in the country, so the National Institute of Vocational Training for Human Development (INADEH) and the Panamanian Association of Hotels is training those who are working or who want to work in the industry. There are also opportunities for those wishing to work in this industry. In addition, there are already about 35 schools who are providing a Bachelor's degree in Tourism to meet the demand.

Editor's Comment: There are currently about 45 hotels in construction in the different parts of Panama, with the grand majority of the new rooms coming on line in Panama City. Everyone already knows that there will be more jobs available than people to fill them. Training new people is supposedly the solution, however unemployment is already at record lows. There are only so many bilingual or trilingual front desk receptionists with experience in the country. Oh, and by the way - has anyone pointed out the fact that customer service in Panama sucks? I mean, no offense or anything, but there simply is no culture, experience, or expectation of superior customer service in this country. None. Business people already know - if you absolutely have to have excellent customer service, hire a Colombian... (no kidding). Panama is about to face a severe labor shortage, and the only way out will be to issue short term work permits to foreigners. I've been predicting this for months if not years. The squeeze is starting, and it's going to get worse. Wages will go up for those most in demand.   

Panama's Labor Minister Alma Cortez said the National Commission on the Minimum Wage will be installed on Monday, 6 June 2011. She recalled that the adoption of Law 30 of 2010 gives a space at the table to CONUSI. Cortes said she hopes in the future space will also be given to the representatives of independent unions and the Panama Canal Authority. Meanwhile, the union leader Samuel Rivera reported there are many companies who are not paying the minimum wage such as security guard companies, and he urged the Ministry of Labor to do inspections. Rivera said higher costs for food and basic necessities substantiate an increase to the minimum wage. (La Estrella)

   

By DON WINNER for Panama-Guide.com - Received today via email: "Hi Don, I've been following up on your updates about job opportunities for foreigners. I am a world class customer service representative, worked on reception for 11 years now, six of them onboard of high standard cruise lines. I speak 5 languages and own valuable skills as well. Do you believe I could be considered for a position on the Hotel industry in Panama? George."

Unfortunately, Probably Not: Foreign owned companies can hire a maximum of 10% of their staff from outside of Panama. This law was established so that companies can bring in their executives and specialized or highly skilled labor in with them for key positions, but the bulk of the jobs (90%) must go to Panamanians, by law. And while your customer service skills are urgently needed in Panama (where customer service generally sucks) you would have to find a company willing to give up one of their 10% slots, put you on a contract, and bring you into the country to work. There is also an onerous paperwork shuffle required between Immigration and the Ministry of Labor to get your visa and work permit. If you just land on the ground in Panama City and start handing out resumes, your chances of finding a position are exceptionally slim. I don't recommend that anyone do that, no matter what their background, education, or skill set.

I Have No Friggin' Idea: I get email all the time from people that say something like "I'm a highly skilled heavy equipment operator and I would like to get a job working on the expansion of the canal. Can you send me a phone number or give me an email address where I should send my resume?" No, I can't. There's this new magic thing on the Internet these days called "Google" - it helps you find stuff. If your first step in trying to find a job is to contact a journalist, then I have to question your fundamental job hunting skill set. "Dear Reporter at the New York Times - I really like the idea of living in Manhattan, and I heard they are building some new stuff there. Who should I call to see about getting a job?" See what I mean? You're asking the wrong person. Now, this guy's question was "do you think I could be considered..." Of course, anything is possible. However, I'm not the guy that can help you get a job. You need to do that on your own, so good luck.

Copyright 2011 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

A poor command of the English language is the main problem for Panamanians that keeps them from having access to a better job. Faced with this situation, the Trump Ocean Club group is holding a job fair and they are offering at least 300 jobs to Panamanians who want to work for their hotel project. The interviews are being held at the University of the Isthmus and Ganexa, and applicants only need to bring their resume and attend an interview conducted by the human resource management of this company. (Telemetro)

Editor's Comment: There's no doubt about it - Panamanians who can speak English generally earn a lot more than their counterparts who can't. What's more, people who are also intelligent, reliable, and responsible are worth their weight in gold (because they are so rare.) The local work force has not caught up to the opportunities that are presenting themselves in this hot and expanding economy.   

There are not enough drivers for the Metro Buses, is the phrase that has echoed in recent days. The central government, the administrator of My Bus and even the National Training Institute for Human Development (INADEH) have all insisted there are opportunities for those who wish to work for the new mass transit system. Today, when speaking on the channel 2 TVN morning news broadcast, the Minister of the Presidency, Jimmy Papadimitriu, accepted it by saying "there are problems with the operators." In a few days ago, Ivan Posada, the Chief Executive of My Bus, said they are having delays in the implementation of the system on new routes because of problems with hiring drivers.

This morning the director of INADEH, Themistocles Rosas, was clear in saying that although someone might not currently be a bus driver, those who are interested can apply to take the courses provided by the entity which make it easier to obtain the appropriate license. There is also an advertising campaign making the same call constantly, asking people to come and learn how to be bus drivers. When the managers of the Metrobus system were asked when they will complete the activation of all routes of the Southern Corridor and commence with those of the Northern Corridor, no one dares to give an exact date. But anytime they are given the opportunity to speak in public they always make a call to ask people to come and seek a position of employment with this company.

La Estrella consulted Esteban Rodriguez of the National Transportation Board (CANATRA), who said the blame for the lack of staff should fall on the recruiters of the Mi Bus company (that is responsible for operating the Metrobus system). Rodriguez reported the company gives "inhuman treatment to their drivers." He said they have something against CANATRA members, as many have been tested and they meet the requirements, but still they were rejected. According to the union leader, Mi Bus has rejected 70% of the members who are associated with their organization who have applied to be Metrobus operators.

Other measures due to the shortage of employees - Posada has been clear. When speaking to the news media he said that - although the priority is to work with Panamanians - if needed and if the law allows, they will seek foreign labor. About 2,800 bus drivers are needed to cover all of the routes in Panama City. Currently there are 190 working and another 180 are in the selection and training process. The administrators of the Metro Bus system have revealed that just to run the buses of the Northern and Southern corridor routes they will been 550 drivers. In Panama there are now about 150 buses, of which 120 are in operating condition and another 30 are being prepared. (La Estrella)

The Republic of Panama is facing growing pains with the implementation of the new Metro Bus system.

Editor's Comment: Translation - for the most part, those people who have experience driving the old "Red Devil" buses are buses are being rejected, probably because they have terrible driving records, many accidents, outstanding tickets, and bad habits, and bad attitudes. Before the individual bus owners had to take practically anyone who would sling their bus around the city to make a dime. Now, this company and the government of Panama have to be more stringent and demanding in their hiring practices. So, it's not that there's a shortage of experienced bus drivers - there's a shortage of good bus drivers who won't go out and pull the same crap they've been doing for years on the old buses. This labor shortage is going to delay the implementation of the system, no doubt.   

By DON WINNER for Panama-Guide.com - The other day I saw updated numbers and statistics for the levels of unemployment in Panama - 4.7%. This is the lowest number I've ever seen reported in the 24 years that I've lived in this country. And, considering the relentless growth of the economy over the past ten years it makes perfect sense. There are more jobs now in Panama than ever before and the economy continues to grow at an amazing pace. That's the good news.

There Is A Downside: However, back when I was studying international business in college many moons ago something similar was happening in the United States. The unemployment levels dropped down to about 4% or so and all of a sudden the fast-food places and employers with minimum wage jobs available could not fill them. There was too much work available and not enough people to fill all of the positions. The question I had at the time was "then why does the unemployment number never seem to drop below 4%." The answer is both simple and obvious - for ever 100 people out there who are within the working age group, there are at least four dudes who are outright lazy and who simply don't want to work. And now in Panama we're starting to get down to that number. Once you hit that level, a couple of things start to happen.

Higher Wages: It doesn't take long for the workers to figure out that they can make a lateral move from one company to another to secure a higher paying job. Those with skills, experience, and education become more highly sought after. Employers have to offer more money to attract qualified workers, and pay more to their existing work force to keep them on the job. So, more people will be making more money, but there is an inflationary element as businesses are forced to pass those higher costs of doing business on to their customers. But everyone has more money to spend, so the two things cancel themselves out at a macro level.

Worker Shortage: This is already happening in Panama. The next article I'm going to publish talks about how the government is practically begging people to become drivers for the new Metro Bus system. They're only paying about $585 dollars per month (if I remember right) and apparently that's not enough money to attract qualified candidates. So, there are more jobs than workers (at that rate). Answer - offer more money. This situation with the Metro Buses is just the tip of the iceberg - an early indication of what will eventually become a much bigger and much more serious problem - a labor shortage in Panama. There has always been a shortage of quality skilled labor, for example those with particular skills (bilingual for example) or trained to do specific jobs. But now the economy is expanding in all directions so even those with minimal skills and experience will still be able to get better paying jobs.

Openings For Foreigners: Last year the Panamanian government started making some moves to grow the labor force. Specifically, they started to "legalize" those foreigners who have been living in Panama and working illegally for years. The concept is simple - give those people a legal immigration status so they can go out and get legal, regular, normal, on-the-books jobs. They held several of these "immigration fairs" all around the country, and by now that pot has probably run pretty much dry. I expect that the next step will be do open the doors a crack to foreigners. They will do this in a very selective manner, and they will allow in people on short term contracts to take specific jobs - construction, for example. Then in the future if the construction market dries up, they can pull those permits and kindly ask the now-unemployed people to return to their country of origin. The foreigners will be expected to take the lowest paying and least desirable jobs - like Mexican grape pickers in Southern California. Panama needs someone to do the work, and they will have to find a way to strike a balance between allowing foreigners in to work, while keeping unemployment low, and at the same time working against inflation. It's a balancing act.

That's The Big Picture: Now, you will probably see about 100 articles over the next year or so discussing the various details of these kinds of issues. There will be a lot more about this over time, not less. Heads up. If you have good and skilled employees, hang on to them...

Copyright 2011 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 - Received today via email: "Hello, I am considering semi retiring to Panama. I am a Journeyman Power Lineman with 20+ years. I was wondering what the lilelyhood of getting a job in Panama as a Lineman would be. I realize they (Panama) only employs very few non-residents, but I was curious to find out if my field of work is an exception. Thank you. Ron"

Probably Not: There are Panamanians who are trained and experienced linemen as well, so I doubt there's any chance of an exception based on your specific job skill set. The trick is to find a company with a job in Panama that's willing to hire you as a foreigner, and to "burn up" one of their positions that can potentially be used to hire a foreigner. Remember, any company can hire one foreigner for every ten Panamanians on the payroll. There are very few exceptions.

Copyright 2011 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 - Received today via email: "hi there. My name is wolfgang married German passport could you tell me if i can work in panama? JOB OFFERS SAY ONLY RESIDETS OF PANAMA. we are living and working at the Dominican rep AND WE LIKE TO LEVE SOON. SALUDOS WOLFGANG"

Sorry, Probably Not: There are a lot of people around the world that have this same question, and unless you are a Panamanian citizen your chances of being able to work in Panama are pretty slim. Foreign companies can have like one foreign employee for every ten Panamanians they have on the payroll, and there is a very specific process that has to happen before you can be hired, paid, registered with Social Security, and all of that. You will need a work permit from the Ministry of Labor. That's why the job announcements all say something along those lines - that you have to be a resident of Panama with a work permit before they can hire you. The system in Panama is designed to reduce unemployment and to get as many Panamanians working as possible before they allow foreigners to come in and take jobs. Hope this helps.

Copyright 2011 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 - Received today via email: "Greetings. I'm a Panamanian looking to move back to Panama. What are the possibilities of me getting a job within the computer or networking field, and what companies would I send my resume to? Thanks in advance. Currently contracting with IBM / Lenovo. Luis"

You'll Get A Job, Probably Making Less: As a Panamanian citizen you can work in Panama with no problem, doing whatever. With a computer and networking background there's going to be a demand for your skills. However, expect to make a much lower monthly salary than you're probably making now in the United States. Try looking into one of the placement companies like www.konzerta.com, and good luck. You also might want to consider starting your own company.

Copyright 2010 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

Thus far this year through August 2010, the Panamanian government has approved a total of 6,478 work permits for foreigners, representing an increase of 1,074 compared to the same period of time in 2009, according to the Ministry of Labor and Workforce Development (MITRADEL). Meanwhile, a total of 8,020 applications were process, up from 6,157 reported last year. Of these, most of the applications come from Colombian, Chinese, and Venezuelan citizens. "This is a direct reflection of the foreign investment that is taking place in Panama," said Adolfo Linares, the former president of the Chamber of Commerce, Industry and Agriculture of Panama (CCIAP). He added the phenomenon may be due to many factors, including the project to expand the Panama Canal, and many multinational companies are establishing new offices in Panama, in addition to the normal activities and banks, among others.

Although the report from the Department of Statistics of the MITRADEL does not reflect the amount of their wages, Linares said it can be medium to high, as companies usually tend to bring their high ranking executives. Of the permits approved by the MITRADEL, 1,655 correspond to the 10% category. That is to say, foreign companies operating in Panama are only allowed to hire a maximum of 10% of foreign labor.

Meanwhile, the highest number of approvals relate to foreign nationals who are married to a Panamanian citizen (2,244), followed by indefinite permissions (1,262), and 519 under the Marackesh agreement, among others.

For his part, Juan Cabareda, a Venezuelan, said the main advantage of working in Panama is the economic stability, due to the currency, as well as the low inflation in the country, which means he can buy more with the money earned. "In Venezuela, the minimum wage is not enough for anything, instead here the money goes farther for things such as food and housing, the cars are cheaper, and the only thing that is more expensive is gasoline," he said.

The Center for Economic Studies of the CCIAP explained that some companies hire foreign workers with the intention of bringing knowledge to meet needs for specific skills, highlighting some sectors such as trade, services, high technology and others. (Panama America)   

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)