What Happened
Panama’s First Labor Court held the first hearing in the legal case seeking the dissolution of the Suntracs construction union, with both the union and the Ministry of Labor and Labor Development presenting evidence on Friday. The court admitted the evidence submitted by both sides and set the session to continue on April 24.
Suntracs presented 500 documentary pieces of evidence and 58 witnesses in support of its position as a labor organization defending the interests of construction workers. The union also sought to challenge the evidence introduced by the ministry, but the court rejected that motion.
María Fábrega, the lawyer representing the ministry, also filed the evidence she intends to use in the trial, including testimony from four construction workers and documentary material.
Suntracs’ Defense
Antonio Vargas, the union’s lawyer, said the court accepted all of the evidence presented by Suntracs. He added that the next session will focus on presenting and supporting the evidence and on calling witnesses.
Among the items the union submitted are public statements attributed to President José Raúl Mulino, including remarks in which he expressed his intention to eliminate the movement. The union argues that government actions violate freedom of association and has taken that position before the International Labour Organization and other international bodies.
Vargas also pointed to comments made by Mulino on February 13, 2025, when he described Suntracs as not being a union but rather an organization “in the old style of transport mafia and other mafias in the world.”
How the Conflict Escalated
The dispute between Suntracs and the government intensified after the union took an active role in protests and clashes with security forces following the approval of Law 462, which reformed the pension system of the Social Security Fund. That political and social confrontation became the backdrop for the dissolution request filed by the labor ministry on July 17, 2025.
The ministry’s lawsuit is based on Article 392 of the Labor Code and argues that a series of complaints and incidents show repeated acts of extortion, violence, fraud, abuse of power and misuse of resources carried out under the cover of a union organization. The government has said the case is not an attack on unionism or workers’ right to associate.
Broader Political Context
The case is unfolding alongside criminal proceedings involving several Suntracs leaders. Génaro López and Saúl Méndez have faced allegations related to money laundering, aggravated fraud and document falsification in connection with the Red Frogs project in Bastimento, Bocas del Toro, while Jaime Caballero has also faced a separate criminal process tied to alleged handling of union dues.
Méndez had sought refuge at the Bolivian Embassy in Panama before leaving the country. He remains subject to an arrest order issued by the Organized Crime Prosecutor’s Office. López was initially ordered to house arrest and later moved to a weekly reporting requirement, while Caballero was placed under house arrest.
The dissolution case now adds a major labor and political dimension to a dispute that has already reshaped relations between the government and one of Panama’s most influential unions.