The General Union of Workers (UGT) issued a statement warning that Bill 163, which reformulates Law 51 of the Social Security Fund (CSS), signifies the end of the principle of solidarity, a fundamental pillar of the social security system. According to UGT, solidarity in the CSS allows the most vulnerable sectors of society to access health services and decent pensions. This principle, which includes solidarity between generations and among economic groups, has weakened due to tax evasion and the lack of political will to address it.
In the statement, the union denounces that tax evasion in Panama amounts to alarming figures: $6 billion in corporate income tax and $1.8 billion in ITBMS. Recovering these resources, argues the workers' organization, could ensure a state contribution to cover the pension system deficit. UGT points out that Law 51 already fractured the solidarity system with the creation of the mixed regime, which favors individual accounts and left more than 600,000 workers without funding. The new reform, they warn, deepens this precariousness by prioritizing the interests of the private sector.
The statement highlights that Articles 100 and 101 of the bill, which mention the "solidarity fund," instead of guaranteeing decent pensions, the proposed model limits payments to individual savings plus an interest rate, which would result in pensions significantly lower than 60% of the average salary, as currently occurs. Additionally, it criticizes the possibility of private financial entities managing the savings of workers, pointing out that this model, implemented in countries like Chile, has resulted in insufficient pensions and an increase in poverty.
In light of this situation, UGT calls on labor organizations, professional guilds, and retirees to remain steadfast in defending the solidarity system. The union warns that if the popular outcry is not heard, the affected sectors will resort to street protests. "The popular power in the legislative has the opportunity to correct the Executive's mistakes. If it does not, the Panamanian people will be ready to respond," concludes the statement.
