After six months of talks, the Panamanian Chamber of Construction (Capac) and the construction workers union (Suntracs) reached an agreement on the salary for the 2022-2025 collective agreement early Monday, April 4, just hours before a strike call for 20,000 workers which would have seriously hampered Panama’s post-pandemic recovery.

The Suntracs leadership reported that the salary adjustment consists of $0.28 cents over four years for the general assistant, $0.32 cents for beginners and $0.40 cents for the qualified worker. This increase represents 6% more than the current remuneration and will come into force in July.

"The understanding prevailed that we are all Panamanians, that we understand the reality of our country that is in a process of recovery and economic reactivation," said the Minister of Labor, Doris Zapata, after signing the agreement.

Conversations between Capac and Suntracs for the signing of a new collective agreement have been going on for six months, but no agreement has been reached. The parties even declared themselves in permanent session over the weekend and it was not until early Monday morning that they reached an understanding.

Carlos Allen, president of Capac, stated that the union's negotiating committee evaluated the entire situation in the country, highlighting that the worst economic and health crisis is being experienced.

In addition, that they should reach that number in the salary adjustment that will not weaken the companies or affect the industry.

“After a long negotiation with the union, we reached a salary agreement, and the clauses that were needed, for the benefit of the industry and what it can support,” Allen said.

The agreement that we have just signed covers 20,000 workers, who represent 20,000 families and naturally improve their conditions for the next four years," said Suntracs leader Saúl Méndez.