What Happened
Panama’s Labor Ministry says PedidosYa delivery riders are not formal employees under the current legal framework, as a strike by motorizados continues to disrupt the platform’s operations. The stoppage, which began on April 13, involves a large group of riders, many of them foreigners, who are demanding better working conditions and pay.
Labor Minister Jackeline Muñoz said the riders are best understood as informal workers or independent service providers, not employees with a direct labor relationship with the platform. She said that, under current law, the ministry does not regulate the apps themselves because its authority covers formal employer-employee relationships.
Impact on Riders and Businesses
The conflict has affected more than 4,100 workers and 3,500 businesses connected to the delivery service. The stoppage has also prompted lawmakers, including Eduardo Gaitán, to call for mediation by the Ministry of Labor as pressure grows for a solution that addresses both working conditions and the legal status of platform-based delivery work.
For riders, the dispute highlights the uncertainty surrounding gig-economy jobs in Panama, where platform work has expanded faster than the rules governing it. For merchants, prolonged disruption can quickly affect order volume, delivery times and customer access to digital sales channels.
Government Stance on Regulation
Muñoz said the government is open to forming an interinstitutional table to examine the sector’s legal gaps, but she made clear that any future regulation would come with a strict requirement: the workforce would need to be overwhelmingly Panamanian. She said that if the sector is formalized, 90% of the riders should be nationals.
She pointed to the Labor Code as the basis for that position, noting that companies operating in Panama must generally maintain a minimum of 85% to 90% local staff. Her comments underscore how labor policy, migration and digital business models are now colliding in the same dispute.
Why It Matters
The strike has become more than a disagreement over delivery conditions. It has turned into a test case for how Panama will handle platform labor, foreign labor participation and the expansion of the digital economy. Any eventual framework for delivery apps could shape hiring practices, worker protections and the future of app-based services in the country.
At the same time, the ministry’s position signals that any formalization of the sector will likely be tied to broader labor rules already used in other industries. That makes the outcome relevant not only to PedidosYa riders, but also to businesses and workers across Panama’s growing platform economy.