What Happened
The International Labour Organization’s Committee on Freedom of Association has warned of “significant restrictions” on labor rights in Panama, focusing heavily on the treatment of the construction union Suntracs and its leaders.
In its 18-page review of the country, the committee points to government and judicial measures that it says have sharply limited the union’s ability to operate. The concerns center on actions taken after mass protests against the mining contract tied to Minera Panamá and against changes to the social security system.
Protests, Detentions and Criminal Cases
The committee said it took note of complaints about repression during demonstrations against the mining law that backed the contract with Minera Panamá, later declared unconstitutional by the Supreme Court, and against Law 406, which reformed the pensions system. It also asked for final reports on investigations into the deaths of four people in November 2023 during anti-mining protests.
In February 2025, more than 500 Suntracs members were detained, according to the complaints reviewed by the committee. The union also cited clashes between workers and police near the Santo Tomás and Hospital del Niño facilities, after which President José Raúl Mulino described the violence as an “indiscriminate act of murder” and called protesters “terrorists.”
The committee also highlighted criminal proceedings against union leaders Jaime Caballero and Saúl Méndez. Both are being investigated for alleged money laundering tied to a labor dispute in the Red Frog tourism project on Bastimentos Island, in Bocas del Toro. Caballero is under house arrest in Boquete, Chiriquí, while Méndez sought asylum in Bolivia before later leaving that country. Panamanian authorities issued an Interpol red notice to locate him.
Bank Accounts, Dissolution Move and OIT Concerns
Another major concern is what the committee described as the systematic closure of the union’s and its cooperative’s bank accounts. The review cites the position of Panama’s Ombudsman’s Office, which said the closures amounted to a clear violation of the rights to association and freedom of union activity.
The committee also noted a legal move by the Ministry of Labor seeking the dissolution of Suntracs, as well as the cancellation of its cooperative’s legal status by the Panamanian Autonomous Cooperative Institute. In July 2025, Labor Minister Jackeline Muñoz filed the dissolution request, arguing it followed a rigorous legal and technical review and responded to complaints of extortion, violence, fraud, abuse of power and misuse of resources.
The ILO reiterated that dissolving a trade union should only happen in cases of extreme gravity and through a judicial decision that fully protects the right of defense. It urged Panama to let Suntracs carry out its normal activities defending the interests of its members while the legal cases continue.
Why It Matters
The case comes after a period of political turbulence in Panama. The anti-mining protests helped define the final stage of former President Laurentino Cortizo’s government, while the social security reforms were approved in March 2025 under Mulino’s administration.
With workers and unions planning renewed May Day mobilizations in Panama City, the ILO warning places labor rights, state authority and judicial due process at the center of a dispute that remains highly visible in the country’s political debate.