Category World News

Banana producer Chiquita has announced mass layoffs in Panama amid an ongoing strike.

The United States-owned banana giant said on Friday it was letting “all” daily labourers go for the “unjustified abandonment of work at our plantations”.

Workers have been on strike for more than a month, as part of nation-wide industrial action protesting new social security laws lowering pensions. The government has branded the strikes “illegal” and said the sackings are the result of workers ‘ “intransigence”.

Chiquita said in a statement that the strike had caused “irreversible damage..]and] at least $75 million in losses”, adding that those affected by the layoffs are required to collect severance payments.

The company did not elaborate on the number of people affected by the decision. However, the Reuters news agency reported that about 5, 000 workers out of 6, 500 have lost their jobs, referring to an unnamed source.

‘ De facto ‘ or ‘ indefinite ‘ strike

Panamanian President Jose Raul Mulino defended Chiquita’s actions at a news conference on Thursday.

“The company will have to act accordingly, dismissing those necessary to save its operation in Bocas]a Caribbean province in Panama]. Believe me, it hurts me, but this intransigence is not good”, he said.

“The strike is illegal”, Mulino added. “The next step according to the Labour Code is dismissal with just cause because this is a de facto strike, not a legitimate strike”.

However, Francisco Smith, secretary-general of the Banana Industry Workers Union (Sitraibana), told the Panamanian television channel Telemetro on Thursday that the strike was legal because the “deputies who approved bill 462 harmed the banana sector”.

Passed in March, Bill 462 introduced changes to the Social Security Fund that could lead to a possible reduction in pensions.

The introduction of the law led to significant anger, with unions, including banana workers, joining a national strike on April 23.

The government and Sitraibana held a preliminary meeting on Thursday to discuss amendments to the bill, which would include protections for banana farmers.

Still, Smith said, “the strike continues, we continue fighting in the streets… The strike is indefinite”.

The banana industry makes up the country’s economy in large part.

In response to unwavering rhetoric on both sides, Iran and the United States are scheduled to hold a fifth round of discussions on Tehran’s nuclear program.

On Friday, Steve Witkoff, the US president’s Middle East envoy, and Iranian Foreign Minister Abbas Araghchi are scheduled to meet in Rome.

The Oman-mediated discussions are aimed at achieving a new agreement that would prevent Iran from producing nuclear weapons while lifting international sanctions. Little progress has been made, though, and both Washington and Tehran have recently taken a tough stance in public, particularly regarding Iran’s uranium enrichment.

According to Witkoff, Iran is prohibited from enriching any country.

Tehran has rejected that “red line,” saying that it has raised its enrichment to about 60%, which is significantly above the civilian level but below the 90% required for weaponization.

Ayatollah Ali Khamenei, the leader of the Supreme Court, warned that the ongoing discussions are unlikely to lead to any conclusions. He called the demand “excessive and outrageous.”

While acknowledging that achieving a deal that would allow Iran to have a civil nuclear energy program but not enrich uranium, US Secretary of State Marco Rubio stated on Tuesday that it “will not be easy to reach a deal”.

Iran’s construction sector was put under new sanctions by the State Department on Thursday.

Araghchi stated on social media on Friday morning, “Finding out the path to a deal is not rocket science.” We DO have a deal, according to the saying “zero nuclear weapons.” We don’t have a deal, so zero enrichment means. Time to make a decision.

Tehran’s Ministry of Foreign Affairs spokesman attacked the new sanctions, calling them “vicious, illegal, and inhumane.”

High stakes

Both sides have high stakes. Trump wants to stop Tehran from developing nuclear weapons that could stoke a regional nuclear arms race.

Iran insists that its nuclear ambitions are purely for civilians, but it wants to slam international sanctions that threaten its economy.

Trump resisted the Joint Comprehensive Plan of Action (JCPOA), a 2015 agreement that allowed Iran to reduce its nuclear program in exchange for easing sanctions during his first term, in 2018.

Trump renewed his “maximum pressure” program in January, including one that focused on Iran, adding to the country’s economic pressure, for example, by stifling China’s oil exports.

Iran reacted defiantly, promising to stand up to any attack and agender-related enrichment that was unavoidable under the 2015 pact.

Tehran’s enrichment program has become a major source of contention since the two nations started the talks through Oman in April.

The cost could be prohibitive if the talks ultimately go badly. Trump has threatened military action on occasion if no agreement is reached.

Due to rising inflation and supply shortages, Japan’s favorite staple food’s price almost doubled in the past year, making it “rice crisis.”

According to government data released on Friday, rice’s price increased by 98.4% year over year in April after increasing by 92.5% year over year in March.

The surge is straining Japanese consumers’ wallets, further lowering Prime Minister Shigeru Ishiba’s and his ruling Liberal Democratic Party’s popularity.

Prices have increased by about 5, 000 yen (about $35) this month for 5 kg (11 pounds) of the well-known Koshihikari brand of rice despite emergency measures like tapping into government rice reserves. Early this month, according to Japanese media, the other varieties hit 4,200 yen (roughly $29).

Ishiba, who was speaking during a questioning session with Japan’s parliament this week, said, “We don’t know why we haven’t been able to push prices down.

He said, “We will first determine exactly how much rice there is and where it is.”

Rice prices are still being subject to an upward trend, according to Tim Harcourt, chief economist at the University of Technology Sydney (UTS), who is also the chief economist at the Institute for Public Policy and Governance.

According to him, “one is panic buying as a result of rumors of a mega-earthquake,” referring to an online rumor about Japan. “Which causes the shortage of wheat to replace rice because of the Russia-Ukraine war. And three more important things are that the Japanese tourism industry is expanding, and the demand for rice is rising.

Additionally, a particularly hot summer in 2023, which resulted in a poor harvest for Japanese farmers, has been linked to shortages.

Restaurants in Japan and some consumers have abandoned the traditional Japanese preference for locally grown rice and instead have started purchasing less expensive imported varieties as a result of rising prices.

As voters turn out for parliamentary elections later this year, Japan’s “rice crisis” could affect its minority government’s chances in the future.

An economic crisis automatically turns into a political one, according to Harcourt of UTS, according to Harcourt.

According to a recent poll conducted by Japanese media, Ishiba’s cabinet’s approval rating decreased by 5% from April to 27.4% this month.

Due to the numerous gifts of rice supporters he received, agricultural minister Taku Eto was also forced to resign this week after causing outrage by declaring that he “never had to buy rice.”

The statement was deemed out of touch with voters, who are currently experiencing a cost-of-living crisis and high inflation.

Shinjiro Koizumi, his replacement, announced on Friday that he wants to raise rice prices by about 3, 000 yen (roughly $20) for a 5kg bag of rice.

The Bank of Japan’s latest data shows that Japan’s core inflation rate increased to 3.5% in April, its highest annual rate in more than two years. According to the BOJ, the consumer price index increased by 3.5 percent in April, which includes the price of oil but excludes fresh foods.

As Japanese businesses began their new fiscal year, food prices increased by 7.0 percent in April, according to government data. The price increased came after the March increase, which was 6.2% higher.

Japan was once renowned for having low inflation levels, but the COVID-19 pandemic and the Ukraine war helped to reverse the decades-long trend in 2022.