Strong Opposition Holds Up Labour Reforms

Recent strike action by both canal and banana plantation workers in Panama demonstrates the extent of domestic opposition to President Ricardo Martinelli's attempts to introduce greater labour market flexibility in the economy. In response to industrial activity the government decided to suspend the enforcement of Law No. 30, which would have included restrictions on workers' right to strike as well as their rights to sign up to union membership. While the end to the strikes will come as a welcome relief to the business community, Martinelli's administration will now be hard pushed to make headway in bolstering labour market flexibility in the country.

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