The closure of bank accounts belonging to the Sindicato Único de Trabajadores de la Construcción y Similares (the National Union of Workers of Construction and Similar Industries in English, or SUNTRACS) in Panama has raised significant concern among various social actors and observers about the Central American country’s level of respect for union rights, freedoms and activism in general.

Trade unionists and environmental representatives have described these closures as a coercive measure taken in response to the participation of SUNTRACS in the large-scale social mobilisations, which lasted for months, aimed at canceling the mining concession contract held between the Panamanian state and Minera Panamá S.A., a subsidiary of the Canadian multinational First Quantum Minerals, at the end of 2023. On 28 November of that year, the Supreme Court of Justice (CSJ) declared Law 406, which had approved the concession, unconstitutional.

“The union is facing intense persecution, which is impacting our operations,” Saúl Méndez, general secretary of SUNTRACS, tells Equal Times.

In mid-November 2023, Caja de Ahorros (CA), one of Panama’s two state-owned banks, closed SUNTRACS’ accounts, including the individual accounts of several of the union’s leaders. The bank stated that, in accordance with its internal policies and the banking services contract, it had detected “suspicious transactions” allegedly linked to the “financing of terrorist activities”.

Méndez categorically rejects this claim, insisting that the union’s primary source of funding comes from the 2 per cent union dues it collects. These dues, he adds, represent a percentage of the salary of affiliated workers and are used to finance the union’s various activities and services, including defending labour rights, organising strikes and protests, and providing social and economic support to its members.

“The union’s resources come directly from the workers and their salaries and are thus legitimate. All of this money is deposited into a bank account and used to fulfil the union’s commitments,” he explains. According to Méndez, after 30 years of being customers without any legal issues, the closure of their accounts is not only a surprise but also represents an “arbitrary, illegal, unconstitutional and criminal” act.

In this case, which involves severe restrictions on freedom of expression and assembly, as well as the arbitrary detention of trade union members, Panama was singled out in the International Trade Union Confederation’s (ITUC) Global Rights Index 2024. This index evaluates respect for workers’ and trade unions’ fundamental rights and freedoms worldwide.

Similarly, the Ombudsman’s Office of Panama has identified a “clear violation of the SUNTRACS’ human rights, specifically regarding freedom of association”. Meanwhile, the International Labour Organization (ILO), in response to a letter from the union, confirmed that they have addressed the situation and are awaiting a response from the government. The ILO also highlighted the excessive use of force employed during the demonstrations against the mining contract.

While freedom of association is recognised in the Panamanian Constitution, as well as in numerous international treaties signed by the country, Eduardo Gil, general secretary of the Panamanian national centre Convergencia Sindical (Trade Union Convergence in English, or CS), warns that, in practice, and given the decline in trade union rights and freedoms over recent decades, progress is urgently needed in its implementation.

Gil also believes that there is now greater awareness of the violations of freedom of association in Panama, as well as the political attempt to control these groups, “beginning with the strongest union in terms of both leadership and membership”.

Another significant challenge facing the country is the lack of adequate protection for environmental activists, Lilian González Guevara, executive director of the Centro de Incidencia Ambiental de Panamá (the Panama Environmental Advocacy Centre in English, or CIAM), tells Equal Times.

As González Guevara explains, environmental activists find themselves in a “special situation” due to the absence of specific legislation to protect them. However, she views Panama’s ratification of the Escazú Agreement as an important first step. The agreement requires the Panamanian government to foster a supportive environment for environmental activists and to take appropriate, effective, and timely action to prevent, investigate, and address any attacks, threats or intimidation they may face.

The experts consulted for this article agree that there is a clear need to strengthen the protection of the rights of trade unionists and environmentalists in Panama, and to ensure that institutional actions uphold these fundamental rights, particularly given the risks of threats, violence and political persecution.

Attacks on activists on the rise

This follows the tragic consequences of the protests against the mining contract, where four defenders lost their lives during the repression of the demonstrations, according to the 2024 Global Witness report, Missing Voices.

According to the organisation, “Latin America consistently records the highest number of documented murders of land and environmental defenders”. The report also highlights a concerning fact about Panama: while five defender killings were reported in the country between 2012 and 2023, four were killed in 2023 alone.

González Guevara of CIAM recalls another emblematic case from the 2023 protests: the attack on photographer and activist Aubrey Baxter, who lost an eye after being hit by a pellet fired by the National Police while documenting the demonstrations. According to a 2024 UNESCO report, 7 out of 10 environmental journalists have been attacked for their work.

The ITUC also reports that, following SUNTRACS’ involvement in the mining protests, its leaders have been subjected to persecutory, repressive and intimidating treatment by Panamanian authorities. It was reported, for example, that SUNTRACS’ general secretary, Saúl Méndez, and foreign relations secretary, Jaime Caballero, have been charged by the public prosecutor’s office with crimes against freedom and the economic order, to the detriment of Panamanian society. Caballero was arrested on 26 February 2024. Shortly thereafter, on 10 March 2024, SUNTRACS’ offices in the province of Panamá Oeste were set on fire.

“These violations paint a worrying picture for workers’ rights in the country,” warns the ITUC in its report. According to Méndez, this statement brings to light an often-concealed reality. As he notes, this is not the first time Panama has appeared in a report on the violation of fundamental rights, citing rulings by the Inter-American Court of Human Rights and the ILO, the latter of which includes multiple complaints regarding trade union rights.

In its 2024 report Application of International Labour Standards, the ILO raises concerns about freedom of association and the protection of workers’ rights to organise and bargain collectively in Panama. The organisation urges the country to strengthen protections for trade unions and ensure that union leaders are not subjected to retaliation.

A series of challenges

According to Gil, the criminalisation of social protests, particularly when directed against union leaders, continues to be one of the main challenges for trade unions.

Similarly, González Guevara explains that being subjected to legal proceedings – whether criminal or part of a strategy to criminalise (the strategic use of the legal system to discredit, silence or harass) – opens the door to intimidation and persecution by private individuals. To an even greater extent, she adds, this situation poses risks to life and physical safety.

González Guevara cites at least two cases that her organisation has followed up on. One involved Jacinto Rodríguez, director of Fundación Agua y Tierra (the Water and Land Foundation), who was subjected to an administrative process before a justice of the peace by a development company after he exposed a project near a turtle nesting beach. The developer sought US$10,000 in compensation.

“Both the director of the foundation and the company received written warnings for violating the principle of peaceful coexistence. While the sanction was minor, there was a lack of diligence on the part of the authorities, both in enforcing the special law for the protection of turtles and in supporting the defender throughout the process,” says González Guevara.

Other challenges highlighted by Gil of the CS are related to the bureaucratic requirements for trade union registration and the routine procedures at the Ministry of Labour and Workforce Development (MITRADEL), which not only hinder the practice of trade unionism but also leave workers completely defenceless.

According to González Guevara, measures of economic repression include the closure or suspension of bank accounts, as well as the withholding of union training resources that are guaranteed by various legal instruments.

She cites other challenges, including the lack of support for organisations, limited access to information, slow legal complaint processes, the risk of repression and police violence, and the need to create civic space for meaningful participation in decision-making.

International pressure

As an important lesson, Gil acknowledges that international pressure plays a crucial role in ensuring Panama upholds standards of freedom of association, labour rights and collective bargaining. He emphasises that it is essential for unions to be able to defend their positions and present their arguments before international bodies, particularly at the ILO.

“We know that when we’re in these forums, we have to prove that the country not only has an anti-union policy aimed at limiting trade union participation but also an aggressive approach toward union leaders,” Gil emphasises.

“While this may harm the country’s international reputation, we are aware that this mechanism is often used when the channels for dialogue are closed and when there is no possibility of agreement or means that effectively guarantee these rights,” he adds.

González Guevara argues that while Panama lags behind in fully respecting freedom of association and social protest, there is still time to “put the brakes on” and reclaim human rights before the situation deteriorates as it has in neighbouring countries like Mexico and Colombia.

“Panama still has the opportunity to truly uphold and enforce human rights,” she concludes.

As Méndez of SUNTRACS explains, anyone who speaks out in protest is met with a barrage of accusations aimed at discrediting, demonising and distorting their position when it opposes the interests of corporates and the government. “This is part of the current situation,” he says.

According to Méndez, the closure of accounts has significantly impacted SUNTRACS’ ability to manage its finances and make payments to its members and suppliers. In response to this situation, he says, the union had explored alternative solutions to ensure the continuity of its financial operations, including the possibility of opening accounts with banks abroad.

While these efforts are ongoing, Méndez explains that one of the main challenges they’ve encountered is that, even if the funds are held in foreign banks, there will be no way to transfer them back to Panama if no bank is willing to accept them.

“It’s all part of the blockade of the financial system, which prevents us from operating both nationally and internationally. However, we are working on transferring some of our resources abroad,” he says.

In December 2024, the Third Chamber of the Supreme Court of Justice accepted the lawsuit filed by SUNTRACS against the CA. The union is currently awaiting developments in this legal process.

Equal Times attempted to interview the Ombudsman, Eduardo Leblanc, and the Minister of Labour and Workforce Development, Jackeline Muñoz, as government representatives, to further explore the realities surrounding the rights and freedoms of trade union and environmental activists. However, as of the time of publication, no response has been received.