In Panama, Construction Workers Say No to Exploitative Wage Structure

For the last 15 days, Panamanian construction workers of the Single Trade Union of Construction and Allied Workers of Panama (SUNTRACS) have been on strike, demanding an increase in their wages. The strike was called after the failure of talks with the Panamanian Chamber of Construction (CAPAC). Between 100,000 and 140,000 workers are taking part in the strike, which has reportedly affected 95% of the construction industry. Business owners have reported losses of $30 million a day in the sector. However, despite the key role played by the workers in economy, CAPAC refuses to offer more than a 4 cent increase in workers’ wages.

Prior to the strike, negotiation had taken place for  six months on a collective agreement for 2018-2021. SUNTRACS argued that workers should be given a 15% annual wage increase throughout this period while CAPAC initially offered only a 0.5% increase ie. 2 cents per hour. The trade union denounced CAPAC’s offer as ‘breadcrumbs’ and an insult to the workers. They also pointed out that most construction workers were not employed throughout the year, which meant that what they earned over 8-9 months was all they would have for the year.

The union has pointed out that the construction sector makes up 18% of the GDP of Panama. From 2014-2017, the sector generated $36,547,800. Of this, only $5.9 billion went for workers’ salaries while the rest – over  $30 billion – was profit. The union argued that a wage hike was not only economically feasible but also necessary in order to limit the excessive accumulation by business owners. Many of the business owners have been involved in the infamous Odebrecht corruption scandal and have been exposed for stealing millions from the state.

In fact, one of the members of the negotiating team of CAPAC was Luis Manuel Hernández, a member of the Partido Popular (People’s Party – a conservative Christian party), who is implicated in the Odebrecht scandal in Panama. Despite such high levels of expropriation, the business owners have been refusing to give workers more than $700 a month, which is barely enough for a family to survive on.

The construction sector and its elite allies, along with the hegemonic media, have taken a very antagonistic position towards the striking workers and SUNTRACS. They have been attempting to argue that construction workers make more than any other workers in Panama and so should not be demanding a wage increase. They also claim that the workers’ wages are really being consumed by union dues and that SUNTRACS was making a profit off the workers.

The owners have also sought to paint a picture of a sector in crisis as an argument for refusing hikes, and are spreading other misleading statistics about the profits and workers’ wages. Elisa Suárez de Gómez, sister of Federico José Suárez, the ex-minister of Public Works who received hundreds of thousands of dollars in the Blue Apple corruption scandal, wrote an article in a financial magazine where she stated that the majority of construction workers were young, uneducated men who should be happy that they earned nearly $700.

SUNTRACS workers march on May 1. Photo Credit: SUNTRACS twitter

These messages seek to divide the working class, pit workers against each other and above all, distract the working class from the true enemy, the capitalist class, which gains millions from the sweat and blood of workers.

Despite these attacks, the 100,000 SUNTRACS workers on strike remain firm in their resolve and the strike continues.  Negotiations went on even as the workers were on strike, While SUNTRACS was willing to reduce their demand from a 15% hike to a 11% increase, CAPAC was willing to offer no more than a 1% increase, which works to out to a paltry 4 cents an hour.

The impact of the SUNTRACS strike is evident from the frenzied claims of daily losses of up to  $30 million on the part of the owners. Already, the President of Panama, Juan Carlos Varela, has commented on the need to reach an agreement with SUNTRACS as the strike is affecting important public works projects like the metro line and the expansion of the Tocumen International Airport. The following days will see the answer to the question of whether the industry owners are willing to bear even a small dent to their profits so that millions may benefit.