Politics Events Country 2026-04-11T02:36:55+00:00

Legal Battle Over Dissolution of Panama's Construction Union

The first hearing was held in Panama's lawsuit to dissolve the major construction union Suntracs, filed by the government. The union accuses authorities of violating freedom of association, while the government alleges criminal activity. The court heard both sides.


Legal Battle Over Dissolution of Panama's Construction Union

The Single Union of Construction and Similar Workers (Suntracs) and the Ministry of Labor and Labor Development (Mitradel) held a hearing this Friday before the First Labor Court, presenting evidence in the first session of the lawsuit seeking the dissolution of that union. During the hearing, Suntracs presented a total of 500 documentary pieces of evidence and 58 witnesses supporting its actions as a union organization dedicated to defending the interests of construction workers. María Fábrega, the lawyer representing Mitradel, also filed a motion to invalidate the evidence presented by Suntracs, but this request was dismissed by the court. Fábrega also presented the evidence she will present during the trial, including four construction workers and several documentary pieces of evidence. Antonio Vargas, Suntracs' lawyer, explained that in today's hearing, all the evidence presented was admitted, and the session will resume on April 24, when the evidence will be presented and the witnesses will testify. Vargas detailed that among the evidence presented by the union are statements made by President José Raúl Mulino, in which he declares his intention to eradicate this movement. He also explained that in this case, the union alleges that the actions taken by the government violate freedom of association, a situation that has been reported to the International Labor Organization (ILO) and other international bodies. Vargas recalled that on February 13, 2025, President Mulino stated that Suntracs was not a union, but an "old-fashioned organization like the transport mafia and other mafias in the world," and that these are elements that will be presented during the judicial process.

Origin of the conflict. The active participation of Suntracs in a series of demonstrations and clashes with security forces following the approval of Law 462, which introduced reforms to the social security pension system (CSS), was the trigger for the conflict with the government. On July 17, 2025, the Minister of Labor, Jackeline Muñoz, filed a lawsuit for the dissolution of Suntracs. Muñoz's lawsuit is based on Article 392 of the Labor Code and responds to multiple complaints and facts that demonstrate how, under the guise of a union organization, repeated acts of extortion, violence, fraud, abuse of power, and misuse of resources have been committed. On that occasion, the minister stated that the action taken by Mitradel does not constitute an attack on unionism or the freedom of association for workers. At that time, the minister also referred to the cases against Suntracs leaders Génaro López and Saúl Méndez for money laundering, fraud, and other crimes related to the Red Frogs project being developed on Bastimentos Island, Bocas del Toro, and the criminal case against Jaime Caballero for the appropriation of workers' union dues from that organization. In Méndez's case, he took refuge in the Bolivian Embassy in Panama but later left the country. An arrest warrant has been issued against him by the Specialized Prosecutor's Office against Organized Crime. While López was charged with money laundering, aggravated fraud, and document forgery, and was placed under house arrest, which was later modified to a precautionary measure of weekly notification. Meanwhile, Jaime Caballero, who was detained at La Joya Penitentiary Center, was placed under house arrest.