Individual Case (CAS) - Discussion: 2025, Publication: 113rd ILC session (2025)

Employment Policy Convention, 1964 (No. 122) - Panama (Ratification: 1970)

Written information provided by the Government

The Government, through the Ministry of Labour and Workforce Development (MITRADEL), complies with international labour standards in full accordance with the Political Constitution. The Republic of Panama, in accordance with articles 19, 40 and 64 of the Political Constitution, recognizes the freedom of individuals to choose freely the exercise of any occupation or trade, without any type of discrimination on the basis of race, birth, social class, sex, religion or political ideas, and the State, in compliance with this constitutional duty, formulates economic policies designed to promote full employment and guarantee to all workers the conditions necessary for a decent existence.

MITRADEL, in accordance with section 1 of the Labour Code, regulates the relations between capital and labour on the basis of the principles of social justice, ensuring State protection for workers, promoting full employment through the creation of the necessary conditions to guarantee workers a decent existence and to offer capital equitable compensation for investment.

With this objective, the Republic of Panama has established the following programmes:

Focused recruitment, as an innovative approach by the public employment service which gives priority to a more human, dignified and efficient process of seeking work for all citizens of Panama through procedures that are organized and aligned with real opportunities on the labour market, which only call on applicants whose profiles are in line with the available vacancies, thereby ensuring that they have a real chance of obtaining decent work. During the second half of 2024, some 52 recruitment days were organized at the national level, offering 2,021 job vacancies. In the first half of 2025, 60 such days have been organized in regional offices, with a total of 4,685 vacancies offered through the collaboration of over 300 private sector enterprises.

The Mi primer empleo (“My First Job”) programme (Act No. 121 of 2019, Executive Decree No. 27 of 2024, as amended by Executive Decree No. 6 of 2025) is a flagship programme of the current administration. It facilitates the integration of young persons between the ages of 17 and 24 years in the formal labour market through a transparent and flexible process, administered through a digital platform which optimizes labour mediation through the automated matching of the vacancies registered by enterprises and the profiles of the young participants in the programme, thereby facilitating interviews and internships. This tool promotes public–private collaboration, facilitates integration into the formal labour market with decent remuneration and reinforces the commitment of the State to youth employability and economic growth. During its first phase, between July and December 2024, the programme offered 1,058 internships and achieved the integration of 624 young persons in the private sector. In 2025, a further 2,780 internships are envisaged, of which 738 were organized during the first quarter of the year, with the active participation of over 405 private enterprises at the national level. In April 2025, we signed a cooperation agreement with the Private Sector Council for Educational Assistance in support of the Mi primer empleo programme. The agreement provides for training through the CONECTA platform, which is an innovative, flexible and solid tool that optimizes the management of essential activities and resources to promote vocational development and strengthen links with the business world. This training, which is aligned with labour market demand and the skills required by enterprises, includes regular assessments to monitor the progress and involvement of young beneficiaries.

The Programme to Improve the Employability of Persons with Disabilities (Act No. 15 of 2016), through which comprehensive strategies have been developed to raise awareness and provide support for enterprises for the recruitment of this valuable talent pool. Within the context of this transformative vision, the Barrierless Talent Foyer “Anita Correa” has been developed as a fundamental pillar of the model of inclusive recruitment which ensures that each labour market integration process for persons with disabilities is carried out in an effective, decent and sustainable manner, with the promotion of real opportunities for integration. We play a key role by offering comprehensive support to enterprises, ranging from legal guidance to post-recruitment follow-up, and ensuring strict compliance with Act No. 15 of 31 May 2016. On the basis of this inclusive and structured strategy, between July 2024 and the present, a total of 222 persons with disabilities have been integrated into the labour market in the various regions of the country, of whom 127 are men and 98 are women. This progress is a result of the positive impact of the initiative for the development of a more equitable and accessible labour environment for everyone. The State recognizes the labour market inclusion of persons with disabilities as a fundamental right that promotes equity and social cohesion.

The Vocational Guidance and Employment Programme (Decision No. 341 of 24 July 2015) is being consolidated as a strategic tool to bring young persons closer to the real conditions on the labour market. The Programme provides advice on employment trends and academic courses for school-leavers at the bachillerato level with a view to facilitating free and informed decisions on their vocational futures. In 2024, a total of 2,210 young persons were trained at the national level, and in 2025 it is planned to cover 10,000 young persons, who will be assisted by suitable psychologists from the institution, thereby reaffirming the Government’s commitment to the comprehensive training and labour market integration of youth in Panama.

The Government is proposing to make progress towards real electronic administration through the integration of technology as a key tool for the provision of public services. A significant step forward in this respect is the management of the Department for Private Employment Agencies, governed by Executive Decree No. 32 of 15 April 2016, with a total of 108 enterprises registered, of which 81 have currently valid permits. In 2024 and 2025, six new agencies have been registered, both for maritime and land-based employment. During the course of 2025, seven applications have been received for the renewal of permits and one application for a new permit. Of the new applications received, only one was submitted in hard copy, thereby demonstrating the effectiveness of the digital application and the administrative efficiency for employment generation.

The digital platform Empleos Panama (Executive Decree No. 3 of 22 April 2024) continues to be a pillar of employment mediation and facilitates the appropriate and efficient matching of enterprises and jobseekers, with support from MITRADEL. The platform has 2,001 registered enterprises and 234,167 users and is a tool that is making progress towards a comprehensive restructuring based on artificial intelligence, which will make it possible to modernize the service and improve its efficiency, in line with the highest international standards for public employment services. On 5 May 2025, we concluded an agreement with the Ministry of the Interior for the selection of staff for the Community Justice Peace Houses through the Ministry’s employment exchange. With over 2,100 posts available at the national level, the effectiveness of the public employment service is being consolidated as a key tool for the Government to guarantee accessible justice and strengthen local recruitment.

The Government is continuing to strengthen skills training for the labour force through strategic alliances with educational institutions, such as the Higher Specialized Technical Institute (ITSE). A framework cooperation agreement between the ITSE and MITRADEL seeks to extend its training programmes at the national level, using the facilities of the Panama Institute of Labour Studies in the regional departments of MITRADEL. This initiative has promoted the implementation of micro-credentials, especially in the tourism sector, with priority being given to regions with a high demand for labour, thereby reaffirming the State’s commitment to quality technical training that is inclusive and oriented towards economic development and social equity. The ITSE has trained 328 young professionals, with a historically high labour market integration rate of around 60 per cent.

The Republic of Panama, as a country with a high demand in the tourism and logistical services sectors, requires a good level of English as an essential skill to strengthen the labour market and improve employability. In this context, MITRADEL has concluded an agreement with the National Institute of Vocational Training and Human Resource Development (INADEH) for the provision of English courses in classrooms and online with a view to providing jobseekers with the essential tool of a second language. This alliance is strengthening continuous training and quality technical capacity-building with a view to promoting inclusion, equity and better labour market opportunities.

The services of the INADEH are intended to train citizens for employment. In 2024, it provided services for 181,024 beneficiaries, of whom 35.5 per cent were men and 65.5 per cent women. It provided 6,406 courses and programmes physically and online in 28 skills areas intended to address the needs of the various economic sectors. The INADEH is currently developing the initial phase of the Hotel School project, with the principal objective of responding to the needs of beneficiaries who do not have opportunities to engage in vocational practice. The project links theory and real work. It is costing around 30,715,035 balboas and, in addition to beneficiaries in the hotel industry, will also promote the areas of enterprise development, catering, baking and client services, among others, and, for its operation, will require various vocational profiles and the development of an organizational plan for the institution.

The INADEH is also planning the construction of new training centres in local districts with a view to bringing the provision of training closer to remote rural communities, as indicated below:

• (1) The construction of new facilities for the local Ngäbe Buglé vocational training centre, which is planned to cover 212,084 inhabitants of the Ngäbe Buglé indigenous district who, according to the 2023 census, consist of 109,577 women and 102,507 men. It is planned that there will be approximately 6,925 direct beneficiaries each year, through the provision of around 277 courses. The investment will be 4,312,256.16 balboas transferred by the central Government.
• (2) The construction of new facilities in the Guna Yala district, in a project that will benefit 32,016 inhabitants of the Guna Yala indigenous district where, according to the 2023 census, there are 15,308 men and 16,708 women.

It should be emphasized that on 13 and 14 May this year, the Ministers of Labour of Central America and the Dominican Republic and their permanent technical staff held the first ordinary meeting of the Council of Ministers of Central America and the Dominican Republic (CMT-CARD) in the City of Panama. On that occasion, Panama acted as Chair pro tempore, in succession to Honduras, and the CMT-CARD Plan of Action 2025–27 was adopted, which addresses the four fundamental areas of: innovative employment placement in public employment services and labour market observatories; labour inspection with the inclusion of new technologies; the transition to the formal economy, including the development of a regional analysis and a good practices guide; and the strengthening of the governance of the Council and the management of international cooperation.

The Panama Declaration was also adopted, which places emphasis on decent work programmes, the Labour Information and Analysis System (SIALC) of Latin America and the Caribbean and the discussions at the 113rd Session of the International Labour Conference in relation to labour matters in the region. Emphasis was also placed on the positive impact of the design and implementation of comprehensive policies for the transition to formal employment through the adoption of a multisectoral approach and the use of technology. International cooperation and technical assistance are key elements in addressing these challenges through sustainable and effective strategies with a view to ensuring better conditions of work and opportunities for the population.

Finally, we emphasize that the efforts made in Panama are not only a response to structural factors in the labour market, but also to recent events that have affected job conservation and creation, such as the mining contract being found unconstitutional, the prolonged closure of roads at the national level and the calling of unlawful and unjustified strike action, which have had a negative impact on economic activity and labour stability. We are continuing to make firm progress through coherent activities that include the Government, the private sector and the population in order to ensure that every citizen of Panama can have access to real opportunities for decent employment that are freely chosen and are not affected by any form of discrimination, thereby strengthening economic growth and sustainable development.

Discussion by the Committee

Chairperson – I have the honour of giving the floor to the distinguished representative of the Government of Panama, the Director of Employment, Ministry of Labour and Workforce Development.

Government representative – On behalf of the Government, I welcome the opportunity to speak to this distinguished Committee in order to provide information relating to the application of the Convention.

And what have we been asked to do? Among other matters, the Committee of Experts has requested the Government to continue providing information on the nature and impact of the measures adopted to implement an integrated policy aimed at promoting the creation of opportunities for full, productive and freely chosen employment. In this context, we wish to report the following.

The Government, through MITRADEL, complies strictly with the standards of international law and in full accordance with its Political Constitution, and particularly articles 40 and 64, which establish the freedom of all persons to the free choice of their occupation or trade. In compliance with this constitutional mandate, the State of Panama develops and implements economic policies designed to promote full employment while guaranteeing every worker the conditions necessary for a decent existence.

In this context, Panama will provide a brief description of recent action and the commitments assumed for the effective implementation of the Convention. MITRADEL, in accordance with the Labour Code, regulates the relations between capital and labour with a view to promoting full employment and the protection of workers.

I wish to emphasize first that the Government approved, by Cabinet Decision No.124 of 26 December 2024, the Strategic Plan of the Government for the next five years (PEG 2025–29). The Strategic Plan is a key tool for national planning with the principal objective of the coherent articulation of all public policies including, of course, employment policy, with the economic and social objectives of the country. The Strategic Plan is not only a framework for action, but also the outcome of a participatory and inter-institutional process, which ensures the alignment of the various levels of Government and social sectors. In turn, this facilitates more effective coordination between employment policy and other areas of national development.

In terms of implementation, the Strategic Plan 2025–29 establishes financial programming for five years with a public investment plan of US$30,277,000, with a direct impact on key sectors, such as agriculture, logistics, finance, education, health and tourism. This includes major infrastructure works that are planned, and some are already being implemented, such as the Panama-David-Frontera train, the San Miguelito Cable Car, the fourth bridge over the Panama Canal, the modernization of the National Aqueducts and Sewers Institute and the rehabilitation of the historical centre of the Province of Colón. In this context, I would also like to take this opportunity to inform you that in the month of April we recorded an increase of nearly 31 per cent in new employment contracts.

After almost one year of our Government, we have launched and strengthened various programmes, such as focused recruitment, which is an innovative approach by the public employment service that gives priority to a more human, dignified and efficient process of seeking work for all the citizens of Panama through procedures that are organized and aligned with real opportunities on the labour market. Only applicants whose profiles are in line with the available vacancies are called upon, thereby ensuring that they have a real chance of obtaining decent work. Instead of the traditional employment fairs, which brought together great crowds, but offered few specific opportunities, we are implementing this approach which makes people and their aspirations the central focus. This strategy optimizes labour mediation between applicants and real vacancies. By the end of the first quarter of 2025, some 107 focused recruitment procedures had been carried out at the national level, generating 8,401 employment opportunities, in collaboration with over 300 private sector enterprises.

The Mi primer empleo programme is a flagship programme of the current administration which facilitates the integration of young persons between the ages of 17 and 24 years in the formal labour market through a transparent and flexible process, administered through a digital platform which optimizes labour mediation through the automated matching of the vacancies registered by enterprises and the profiles of the young participants, thereby facilitating direct interviews and internships. This tool promotes public–private collaboration, facilitates integration into the formal labour market with decent remuneration and reinforces the commitment of the State to youth employability and economic growth.

During its first phase, between July and December 2024, the programme offered 1,058 internships at the national level and achieved the integration of 624 young persons in the private sector. In the context of economic recovery and policy dynamism throughout the territory, the President of the Republic, José Raúl Mulino, authorized an inter-institutional transfer of responsibilities to reinforce the second phase of the programme, which will integrate an additional 2,000 young persons as a result of the joint efforts of the Government and private enterprise to generate new job opportunities.

In April 2025, we signed a cooperation agreement with the Private Sector Council for Educational Assistance in support of the Mi primer empleo programme. The agreement provides for training through the CONECTA platform, which is an innovative, flexible and solid tool that optimizes the management of essential activities and resources to promote vocational development and strengthen links with the business world. This training, which is aligned with labour market demand and the skills required by enterprises, includes regular assessments to monitor the progress and involvement of young beneficiaries.

We have launched the Programme to Improve the Employability of Persons with Disabilities (Act No. 15 of 2016), through which comprehensive strategies have been developed to raise awareness and provide support for enterprises for the recruitment of this valuable talent pool. Within the context of this transformative vision, the Barrierless Talent Foyer has been established as a fundamental pillar of the model of inclusive recruitment, which ensures that each labour market integration process for persons with disabilities is carried out in an effective, decent and sustainable manner, with the promotion of real opportunities for integration. We play a key role by offering comprehensive support to enterprises, ranging from legal guidance to post-recruitment follow-up, thereby ensuring strict compliance with the Act.

On the basis of this inclusive and structured strategy, between July 2024 and the present, a total of 222 persons with disabilities have been integrated into the labour market in the various regions of the country, of whom 127 are men and 98 are women. This progress reflects the positive impact of the initiative on the development of a more equitable and accessible labour environment for everyone.

The Vocational Guidance and Employment Programme is being consolidated as a strategic tool to bring young persons closer to the real conditions on the labour market. The Programme provides advice on employment trends and academic courses for students at the bachillerato level with a view to facilitating free and informed decisions on their vocational futures. In 2024, a total of 2,210 young persons were trained at the national level, and in 2025 it is planned to cover 10,000 young persons, who will be assisted by suitable psychologists from the institution, thereby reaffirming the Government’s commitment to the comprehensive training and labour market integration of youth in Panama.

The Government is also proposing to make progress towards real electronic administration through the integration of technology as a key tool for the provision of public services. One of the significant steps forward in this digital transition is the management of the Department for Private Employment Agencies, governed by Executive Decree No. 32 of 15 April 2016, with a total of 108 enterprises registered, of which 81 have currently valid permits. In 2024 and 2025, six new agencies have been registered, both for maritime and land-based employment. During the course of 2025, seven applications have been received for the renewal of permits and one application for a new permit. Of the new applications received, only one was submitted in hard copy, thereby demonstrating the effectiveness of the digital application and the administrative efficiency for employment generation.

The digital platform Empleos Panama (established by Executive Decree No. 3 of 2024) continues to be a key pillar of employment mediation and facilitates the appropriate and efficient matching of enterprises and jobseekers, with support from MITRADEL. The platform has 2,001 registered enterprises and 234,167 users and is a tool that is making progress towards a comprehensive restructuring based on artificial intelligence, which will make it possible to modernize the service and improve its efficiency, in line with the highest international standards for public employment services.

On 5 May 2025, we concluded an agreement with the Ministry of the Interior for the selection of staff for the Community Justice Peace Houses through the Ministry’s employment exchange. With over 2,100 posts available at the national level, the effectiveness of the public employment service is being consolidated as a key tool for the Government to guarantee accessible justice and strengthen local recruitment through a transparent system.

The Government is continuing to strengthen skills training for the labour force through strategic alliances with educational institutions, such as the Higher Specialized Technical Institute (ITSE). For example, a framework cooperation agreement between MITRADEL and the ITSE seeks to extend its training programmes at the national level, using the facilities of the Panama Institute of Labour Studies in the regional departments of MITRADEL. This initiative has promoted the implementation of micro-credentials, especially in the tourism sector, with priority being given to regions with a high demand for labour, thereby reaffirming the State’s commitment to quality technical training that is inclusive and oriented towards economic development and social equity. The ITSE has trained 328 young professionals, with a historically high labour market integration rate of above 80 per cent.

The Republic of Panama, as a country with a high demand in the tourism and logistical services sectors, requires a good level of English as an essential skill to strengthen the labour market and improve employability. In this context, MITRADEL has concluded an agreement with the National Institute of Vocational Training and Human Resource Development (INADEH) for the provision of English courses in classrooms and online with a view to providing jobseekers with essential tools, such as a second language. This alliance is strengthening continuous training and quality technical capacity-building with a view to promoting inclusion, equity and better labour market opportunities. In 2024, it provided services for 181,024 beneficiaries, of whom 35.5 per cent were men and 65.5 per cent women.

The INADEH is currently developing the initial phase of the Hotel School project, with the principal objective of responding to the needs of beneficiaries who do not have opportunities to engage in vocational practice. The project links theory and real work. This project, with an approximate cost of US$30,715,035, in addition to beneficiaries in the hotel industry, will also promote the areas of enterprise development, catering, baking and client services, among others, and, for its operation, will require various vocational profiles and the development of an organizational plan for the institution.

The INADEH is also planning the construction of new training centres in local districts with a view to bringing the provision of training closer to remote rural communities, including the construction of new facilities for the local Ngäbe Buglé vocational training centre, which will benefit 212,084 inhabitants of the Ngäbe Buglé indigenous district, and new facilities in the Guna Yala indigenous district.

On 13 and 14 May 2025, the first ordinary meeting was held in Panama City of the Council of Ministers of Labour of Central America and the Dominican Republic (CMT-CARD). On that occasion, Panama acted as Chair pro tempore and the Plan of Action 2025–27 was adopted, which addresses the four fundamental areas of: innovative employment placement in public employment services and labour market observatories; labour inspection with the inclusion of new technologies; the transition to the formal economy with the adoption of a multisectoral approach based on technology; and international cooperation and technical assistance, which are key to addressing these challenges adopting sustainable and effective strategies.

The Panama Declaration was also adopted, which places emphasis on decent work programmes and the Labour Information and Analysis System (SIALC) of Latin America and the Caribbean to which the Government of Panama contributes annually through the significant contribution of US$327,000 and which has existed for almost three decades. I place emphasis on the SIALC because it is an important programme for beneficiary countries in Latin America and the Caribbean. The Panorama Laboral produced by the SIALC is a key tool for Governments, employers, workers and academics interested in the systematic analysis of labour markets in the region. It offers us the opportunity to have access to clear and updated analysis of the labour market situation as a basis for developing action strategies for the years to come, thereby contributing to the strengthening of our labour policies and strategies and ensuring that the information produced has a positive and effective impact on decision-making on labour matters.

The Panorama Laboral 2024 shows that, even though the region has recuperated its economic levels from prior to the pandemic, there remain significant challenges in the labour market. We cannot therefore overlook the effects of the pandemic, which resulted in even deeper informality, unemployment and precarity. It is important to recall that these problems are not exclusive to Panama and are to be found at the global level.

I would like to emphasize that unemployment in Panama is not only a result of structural factors in the labour market, but also of events that have affected the retention and creation of employment, such as the mining contract being found unconstitutional, the prolonged closure of roads at the national level and unlawful strikes, which have had a negative impact on economic activity and labour stability in the country. The unemployment rate continues to be a challenge and informality and precarious work are still a matter of concern. We cannot therefore fail to recognize the efforts made by my country through the implementation of structural reforms to improve the quality of employment and reduce informality and precarious work, thereby enabling workers to have access to decent and sustainable jobs.

Before finishing, on behalf of the Government, we reiterate our commitment to the generation of decent employment and the productive development of the country.

Employer members – Before starting, we would like to thank the Government for the information provided on compliance with the Convention in law and practice. As usual, we would like to give some context to facilitate a better understanding of the case. This is the first time that the Committee has discussed this case. Panama ratified the Convention in 1970 and the Committee of Experts has made observations on it on six occasions, and specifically in 2011, 2012, 2013, 2016, 2018 and, finally, 2024, when it took note of the Government’s reports and the observations of the social partners.

Before turning to the comments of the Committee of Experts, the Employers wish to place emphasis on the importance of the Convention as one of the ILO’s priority governance Conventions, which essentially provides that Member States shall declare and pursue an active employment policy designed to promote full, productive and freely chosen employment.

It is important to bear in mind that, in the present case, we are called upon to discuss the effective implementation of appropriate measures to give effect to the commitments set out specifically in Articles 1, 2 and 3 of the Convention. I will therefore divide my intervention into three sections analysing separately the international commitments deriving from each of these Articles.

First, Article 1 of the Convention establishes as a major goal an active policy designed to promote full, productive and freely chosen employment. In this regard, the Employer members note the tripartite efforts made to subscribe to the Memorandum of Understanding (MoU) on the Decent Work Programme 2024–27. In accordance with the information provided, this Programme was a result of tripartite social dialogue and constitutes a significant step forward in the appropriate direction.

In accordance with Articles 1, 2 and 3 of the Convention, the Decent Work Programme, adopted on a tripartite basis, is intended to ensure that work is productive, strengthen vocational training programmes and establish policies and programmes that place emphasis on vulnerable categories, and particularly young persons, with a gender focus.

The Employer members would like to emphasize the following action deriving from the Decent Work Programme. First, the establishment of the National Labour Observatory with a view to improving the compilation and analysis of labour market data; second, the Youth Employment Promotion Plan; and third, the tripartite round table to follow-up the implementation of the Programme.

Based on the information provided, the Employer members note that, over and above the issues raised by the Committee of Experts concerning the coordination of the employment policy with national social and economic policy, and the scope and outcome of the provisions adopted, Panama does indeed have an employment policy promoted through tripartism and focusing on the reduction of unemployment and informality.

Second, in relation to compliance with Article 2(a) and (b) of the Convention, with reference to the review and monitoring of the measures and implementation of specific programmes, the Employer members note that, as a result of the tripartite agreement on the Decent Work Programme 2024–27, a tripartite follow-up round table has been established responsible for adjustments to the action taken under the Plan of Action, which benefits from the active participation of the most representative social partners.

With reference to the programmes implemented, the Employer members note the implementation of the following action specifically focusing on women and young persons:

• (1) The Policy of Equality of Opportunities for Women, which is structured around fundamental themes such as economic empowerment, labour autonomy, the eradication of violence and socio-cultural transformation.
• (2) The Mi primer empleo programme intended for young persons between the ages of 17 and 24 years, which facilitates their integration into the formal labour market and endeavours to match supply and demand on the labour market.
• (3) The Vocational Guidance and Employment Programme, as a tool to bring young persons closer to the reality of the labour market.

In light of the above, the Employer members recognize the progress and the efforts made by the Government of Panama for the implementation of programmes and projects focusing on the generation of decent work.

With reference to informality, we wish to emphasize that, in accordance with the data of the Office of the Comptroller General of the Republic of Panama, informality in the labour market affects over 47 per cent of the economically active population of the country, and principally in sectors such as commerce, construction, logistics, industry, hotels, restaurants and other service activities. The rise in informality has given rise to unfair competition and has placed at risk the sustainability of the social security system in Panama. It is also one of the main challenges for the economic and social development of the country.

In this context, we call on the Government, with ILO technical assistance, to take measures that contribute to promoting the transition from informality to formality for both enterprises and workers. Such support should include measures designed to simplify labour provisions and make them less bureaucratic and to make administrative procedures more flexible so that legal compliance is more accessible and attractive.

Finally, in relation to Article 3 of the Convention, respecting consultations with the most representative social partners, we invite the Government to continue working through tripartite round tables so that, with the participation of everyone and the experience and knowledge possessed by employers, workers and the Government, progress can continue to be made, both in relation to employability under the concept of decent work, and in the transition from informality to formality.

In this regard, we recommend that the Government, with ILO technical assistance, develop projects and programmes focusing on the strengthening of tripartite social dialogue which protects the independence, parity and constructive participation of the parties. At the same time, it is necessary to reinforce a conducive environment for employers’ and workers’ organizations.

The Employers wish to emphasize that the presence of a conducive environment for the development of sustainable enterprises is the basis for the creation of decent jobs. A conducive enterprise environment is essential to offer legal security and promote investment, innovation and employment. These are fundamental elements for the promotion of public economic, social and employability policies.

In this respect, the Employer members call on the Government to intensify its efforts to continue the implementation, in consultation with the most representative social partners, of projects and programmes both for employment generation and in relation to the transition from informality to formality, for which ILO technical assistance can be requested.

Worker members – The Worker members are taking the floor in the Committee to address the case of Panama in relation to the Convention. We do so with concern and a sense of responsibility because what is at stake is not only compliance with a governance Convention, but also the credibility of the Organization in relation to a serious and current case of the regression of rights which render its genuine and effective application impossible.

We are aware of the rules governing the procedure: we know them and we respect them, but we are talking about a case of a country which goes beyond the Convention.

The report of the Committee of Experts, which we commend for its solidity and balance, emphasizes the lack of a coherent and coordinated national employment policy that can be evaluated and is coordinated with macroeconomic and social strategies. In line with the Preamble to the Convention, productive and freely chosen employment must be considered an essential objective of economic and social policy. However, Panama is not in compliance with this objective.

The Committee of Experts has been clear in its analysis. Despite the plans and announcements described by the Government, there is in Panama no national employment policy that is comprehensive, coherent, sustainable or coordinated with economic and social policies. There is no continuity or focus on the long term. Programmes multiply without evaluation or coordination, with inadequate budgets and without the effective participation of the social partners.

The report indicates that: informality is over 56 per cent; unemployment persists, especially among young persons and women; fewer than 25 per cent of the employment contracts registered are without limit of time and, instead of addressing the structural causes of precarity, the Government has adopted programmes such as Aprender haciendo (“learning by doing”) and Capacítate para el trabajo (“learn work skills”), which are fragmented in their application and do not manage to change the real conditions of employment.

But over and above the technical design of the programmes, there is a central institutional problem: the systematic exclusion of the social partners. Article 3 of the Convention clearly provides that States shall consult the representatives of employers and workers with a view to the formulation and implementation of the policies envisaged. There is no such consultation in Panama.

The trade union movement in Panama has denounced the lack of participation in the design of public employment policies, the weak institutional structure for social dialogue and the absence of a long-term strategy of the State to guarantee decent employment with rights. It has also raised the alarm concerning the geographical concentration of opportunities, persistent gender gaps and the mismatching of the supply of education and the demands of the productive sector.

The Government itself has publicly stated that it will not maintain channels of dialogue with the trade union movement. Instead of institutionalized tripartite dialogue, it refers to listening round tables, without powers of decision, balance or genuine representation. This explicit denial of social dialogue is a direct violation of the core principles of the Convention and the tripartite principles that give the ILO its meaning.

The gravity of this situation is accentuated when it is considered that Panama is part of the troika of the Inter-American Conference of Ministers of Labour (IACML) of the Organization of American States (OAS). The regional responsibility of the troika (Argentina was the Chair, Colombia is now and Panama will be the next Chair) is an ethical and institutional requirement together with the necessity to set an example. It is not possible to take the leadership in regional forums while persecuting unions at the national level. We are convinced that honouring international commitments is not an option, it is a duty.

The report of the Committee of Experts also notes the weakness of the mechanisms for coordination between employment policies and education and production strategies. And here is a critical point: in this climate of institutional hostility towards workers and their organizations, it is absolutely not viable to implement a Decent Work Country Programme which, as we are well aware, can only be developed on the basis of participation between Governments, employers and workers. That is how it is developed. Tripartism cannot be simulated. Either it is respected, or it is violated. And in Panama we believe that today, regrettably, it is violated.

The social and political environment is in crisis and risks are common to the security, freedom and life of persons. As we have heard, the head of the executive authorities declared his intention to the mass media to drown the unions economically. This statement, more than merely a view, is a policy directive that is unacceptable to the Worker members. For this reason, we need to be clear. Full, productive and freely chosen employment cannot be achieved if those who are defending these rights are persecuted. There can be no employment policies without social partners who are at liberty. There can be no sustainable development without social justice, and there can be no social justice without freedom of association.

For the global trade union movement, and especially in the Americas, Panama is today a regional priority. This is because fundamental rights are being violated: freedom of association and the right to organize; the effective recognition of the right to collective bargaining; the elimination of all forms of forced or compulsory labour; the effective abolition of child labour; the elimination of discrimination in employment and occupation; and a safe and healthy working environment.

How has it come to this in Panama which, after being considered a model some years ago due to the presence of tripartite dialogue commissions, is now in its current situation and has been brought before the Committee?

Let us repeat that Panama is identified by the Trade Union Confederation of the Americas (TUCA) and the global trade union movement, because this case is opening a door to backward steps in relation to trade unions in the region, which in turn opens the door to a general retrogression of rights.

In this regard, we inform the Committee that the trade union leaders of Panama, who are present at the Conference, with the support of the TUCA, have met the Director-General of the ILO to request an urgent, direct and visible intervention. A high-level mission is indispensable so that it can observe the seriousness of the situation in situ. The people of Panama have no hope. We cannot look away. It is necessary to comply with ILO Conventions, including Convention No. 122, a governance Convention, and the fundamental Conventions. We urge the ILO, through the Director-General, to engage in an energetic, direct and viable intervention so as to contribute to the reconstruction of spaces for social dialogue and the effective compliance with international labour standards in the country. Panama needs to give guarantees of the safety of trade union leaders so that, with respect for democracy, peace and the rule of law, a process of tripartite dialogue is set in motion with the support of the Office.

We know that technical assistance will not be peripheral or merely symbolic. It will be a priority, strategic and sustained. What is at stake is not only compliance with a Convention. It is the very possibility for the system of ILO standards to continue to be a living tool for social justice.

The serious acts of violence that we have described are not part of the past or taken from a technical report. They are occurring now at the very same time that the Committee is meeting here in Geneva. This is the reality that we are seeing through the mass media, with news arriving minute by minute, with nevertheless a ray of hope for the workers of Panama because of what we are doing today here in the ILO.

As indicated in the Plenary of the Conference by the Secretary-General of the International Federation of Building and Wood Workers, in relation to Panama, the ILO is the house of justice and we must all honour it. We are talking about the overwhelming need for social peace in Panama.

Employer member, Panama – We have come together today to examine the compliance of the Republic of Panama with the Convention on the basis of the observations submitted by the National Council of Organized Workers (CONATO).

It is important to be clear that this is not a case of freedom of association or collective bargaining, nor a case motivated by complaints submitted by a trade union on matters related to freedom of association. It is extremely important to be clear on this point.

The State of Panama, under the administration of the former President, Mr Cortizo, submitted an official response on 6 December 2022, detailing the programmes and plans developed by the country to comply with its obligations under the Convention.

Today, under the new administration of President José Raúl Mulino, these plans have been continued as a matter of State policy, while new initiatives have been launched to generate employment, encourage decent work – particularly for women and young persons – and promote sustainable enterprises to reduce informality.

For reasons of time, I will not refer to each of these plans, as details have been provided by the Director of Employment of MITRADEL. I can confirm with full conviction, and without any reservation, that these policies are real. As Chairperson of the Labour Commission of the National Council of Private Enterprise (CONEP), and as spokesperson and negotiator for the employers, I have participated directly in them, as have workers’ representatives.

The plans and programmes meet the requirements set out by the Convention. Panama is in compliance with the Convention. It has complied 100 per cent. Beyond technical policy design, however, the country is facing serious structural limitations that are affecting the results of the strategies.

In recent years, a pattern of social protest by some groups has developed, and while these groups may have legitimate roots, they have adopted approaches that are deeply disruptive to production and national development. We are referring specifically to the road closures used as a means of exerting pressure and which prevent the normal functioning of the economy, during which workers cannot reach their workplaces, employers cannot open their businesses, producers cannot tend to their crops and citizens in general do not have access to vital services, such as education, food and even medical care.

In 2022, for example, the increase in global fuel prices and alleged inflation triggered protests with widespread blockages, despite the fact that inflation in Panama is minimal, and the country does not produce oil or fuel, and is therefore dependent on global prices. The Government was forced to introduce temporary financial subsidies for fuel for the whole of the population. Those protests caused serious economic losses and forced the closure of many micro, small and medium-sized enterprises, which had barely recovered from the devastating effects of the pandemic, and many of which turned to informality.

There was another example in 2023, after the adoption of Act No. 406 on mining concessions, which led to a wave of protests and road blockages that paralysed the country for more than a month. The subsequent ruling that the Act was unconstitutional resulted in the dismissal of more than 7,300 direct workers and the loss of more than 30,000 indirect jobs. Panama has a very small population, and that was keenly felt. CONEP estimated the economic losses at US$1.7 billion, in addition to the decrease in projected growth of GDP, from 7.4 per cent to 2.9 per cent, and a 7.5 per cent fall in exports.

More recently, in April 2025 the adoption of Act No. 462 reforming the Basic Act on the Social Security Fund, a reform recognized as being urgently needed by all sectors, including the ILO, once again sparked protests, with road closures, the paralysis of the public education for over a month and a half up to now, and unlawful work stoppages.

In the Bocas del Toro province, a banana plantation union called a strike in a company with which it did not have any conflict or claim. As a result, the company lost its crops and closed its operations in the country, leaving more than 7,000 direct workers and 21,000 indirect workers without work. The province’s economy depended on that activity, which collapsed as a consequence of the unlawful strike.

This is a pattern that, worryingly, is being repeated. Social and political issues are met with protests and closures that cause more damage than they claim to rectify.

This is a structural issue. On the one hand, we have employment policies that are well designed, technically appropriate and in line with the principles of the ILO and the Convention. On the other, divisive and unstable social conditions prevent these policies from producing sustainable results. The question is therefore not whether Panama is complying with the Convention in its regulations, planning and execution. It is undoubtedly in compliance. The real question is whether the social context allows all possible results to materialize.

The answer is clear: while this trend of self-destructive protest persists, no employment programme, however robust, will thrive and produce all the desired results. Many efforts are being made.

Today, more than mounting a technical defence, I want to make a human and collective appeal. Panama has enormous competitive advantages: hard-working people, good people, and strategic resources. But we are witnessing an internal erosion caused by our own actions taken by a few small groups.

My country’s situation pains me. That is why I am making a sincere appeal. We need help to strengthen something that historically was our strength: the advantages and opportunities that we have, so that together we can face with maturity the challenges of decent work in sustainable enterprises, harnessing technology, artificial intelligence and robotics, with a vision of the country for all. And in this respect the ILO can help us to strengthen social dialogue.

Panama cannot keep shooting itself in the foot. At times like this we need to come together to keep making progress, as we have always done, with lively social dialogue with a vision for the country.

Worker member, Panama – The Convention was adopted by the Conference in July 1964, at its 48th Session, and came into force on 15 July 1966. It was ratified by Panama on 19 June 1970. Allow me to give an overview of the meaning of “employment policy”. Employment policy comprises the measures adopted by the public authorities to influence the labour market, enhance job quality and reduce unemployment. Such policies can take one of two forms: active and passive. Active policies seek to improve the employability of the unemployed through guidance programmes, vocational training and support for job searches, while passive policies relate to a system geared towards social protection that can guarantee an income for the unemployed while they seek new employment.

In the case of Panama, we must emphasize that the unemployment rate was 9.5 per cent in October 2024, an increase of 2.1 per cent on August 2023. This means that the number of unemployed persons increased from 155,625 to 202,609 over that period. As we have indicated, the unemployment rate rose from 7.4 per cent in August 2023 to 9.5 per cent in 2024. This increase means 46,984 additional unemployed persons. Unemployment among men rose from 4.4 to 5.8 per cent, and the rise among women is more alarming, from 7.7 to 10.5 per cent, with an upward trend.

Labour informality continues to be one of the highest rates in the region. In Panama, around 50 per cent of workers in non-agricultural jobs are in informal work, according to figures from October 2024. In the meantime, during the period from August 2023 to October 2024, the country’s economically active population was 2,126,771 persons. The youth unemployment rate has reached 29 per cent, according to the National Statistics and Census Institute (INDEC), which has become a short-term social problem due to the lack of opportunities for this number of unemployed persons. Sixty per cent of jobs held today by young persons are informal, and those who find formal employment earn less than US$698 per month, which is around US$35.87 less than the average wage of US$734.

In the case of indigenous populations – the Ngöbe Buglé indigenous region has the highest levels of poverty – the lack of job opportunities and neglect by the authorities has caused this population to have the highest level of extreme poverty and malnutrition, reaching over 96 per cent. According to the study, this group lacks sufficient food, drinking water and mains electricity, and access to education is almost non-existent.

This means that, by 2025, Panama had lost approximately 54,107 formal jobs. Between 2023 and 2024, three out of five new jobs created by the economy were informal, necessitating serious discussion of whether the development model being followed by our economy is appropriate in a country with many resources and much potential, but that is failing to create sufficient quality employment.

Although, as workers organized in trade unions, we raised the need to discuss the root causes of the country’s structural problems, our position has been ignored. The situation is worsened by policies intended to reduce public spending, as well as budgetary control measures intended to promote the repayment of public and private debt, which totals more than US$56 billion, while reducing funding allocated to social areas, such as water, health, education, decent work and other claims voiced by trade unions and social organizations in general.

Although Panama has an estimated GDP of around US$63 billion, as well as a consumer price index of over US$13,500, the population faces daily water shortages, with around 250,000 persons without a water supply in Panama City and Colón, the cities at either end of the Panama Canal. Twenty-two per cent of the 3,200 school buildings do not have an internet connection, and 12 per cent do not have an electricity supply, in addition to the deplorable condition of the facilities in a significant number of schools, which hampers the quality of life and the creation of a population with the skills demanded by the labour market.

The public health system is also facing a crisis in the provision of care, drugs and other basic services. In the same way as the so-called “labour market”, it is facing complexities reflected in rapid changes in conditions of stability and security, to the detriment of workers, their representative organizations and leaders, who are facing strong political and economic pressure.

The rapid growth of both open and disguised informal work, estimated to affect 61.2 per cent of the active population, is compounded by the scandalous anti-union policy pursued by the authorities responsible for adopting worker protection measures. Deregulation policies and high levels of labour flexibility have resulted in an unemployment rate of 9.2 per cent, while just 22 per cent of the workforce is in the formal sector, with most of the working population falling outside the protection of the social security system and not enjoying the benefits or rights deriving from the employment relationship, as required by the legislation.

On 1 July 2024, a new Government took office, considered to be on the right-wing libertarian line. The Government identifies fully with the most conservative sector of Panamanian employers, setting a pro-private enterprise course and an attitude of constant attacks on the trade union movement, even in violation of constitutional provisions and disregarding the protective provisions of Panamanian labour law.

Budget cuts, cuts to public spending and investment, particularly in sensitive sectors, such as health, education and housing, the elimination of social assistance programmes, mass dismissals of public officials and the closure of public institutions, among other measures, have become political tools wielded against social movements that demand greater employment and decent wages.

At the same time, the imposition of control mechanisms over social organizations and trade unions through policies of pressure and the use of the courts to silence the voices of leaders who demand job creation has become a daily reality – that is, the criminalization of social protest – in some cases accompanied by open threats, and by pressure tactics in others.

The leaders of teachers’ unions are being prosecuted through rigged cases and investigations. Trade union leaders who, together with other sectors, call for greater employment opportunities and access to the labour market are investigated on suspicion of the crime of “misappropriation of public funds”. Indigenous leaders suffer intimidation, pressure and coercion to change the organizational structures traditionally used for action by indigenous peoples, who have historically been forgotten.

In conclusion, we would like to emphasize that the Decent Work Programme, promoted by the ILO through the National Decent Work Plan, is not working. The previous and current Governments have demonstrably failed to acknowledge the forums created by the ILO, such as the tripartite committee in Panama, which enjoyed support from the Committee of Experts. We therefore demand the establishment of the forums for dialogue required under the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144), with reference to the tripartite commissions which in their time strengthened social dialogue mechanisms in Panama and full compliance with and implementation of the Convention.

Government member, Ecuador - I am delivering this statement on behalf of a group of Latin American and Caribbean countries including Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Paraguay, Peru, and my own country, Ecuador. We note the updated information and statistical data reflecting the results of the various active employment promotion programmes, which were provided by the Government of Panama, represented by the Minister of Labour and Workforce Development.

We welcome the continuous efforts made by the Government, with a view to implementing a comprehensive policy aimed at promoting the creation of full, productive and freely chosen employment opportunities.

We also welcome the measures adopted to promote the integration of young people and persons with disabilities into the labour market through public–private partnerships and the participation of women in the labour market. We encourage the Republic of Panama to pursue these efforts.

We also recognize the country’s commitment to the digital transformation of its public employment services and the Labour Market Observatory, the regulation of private employment agencies and the implementation of training and certification in key sectors, such as tourism and logistics, prioritizing areas of vulnerability.

We also emphasize the leadership by the Republic of Panama as Chair pro tempore of the Council of Ministers of Labour of Central America and the Dominican Republic, a subregional forum for dialogue that recently adopted a work plan focusing on the strengthening of public employment services and labour market observatories, as well as the transition to formality through a multisectoral approach harnessing technology, international cooperation and technical assistance.

Finally, we express our solidarity with and support for the Republic of Panama in its efforts to achieve economic recovery and job creation, and recognize the progress made in addressing the challenges arising from the pandemic and other situations that affected the continuity of production.

Employer member, Guatemala – Many thanks to the Government representative for the information provided. The informal economy has reached alarming levels in the countries in our region. Panama is no stranger to this situation, and we therefore welcome the political will demonstrated by the social partners and the Government through the signature of the Memorandum of Understanding of the Decent Work Programme 2024–27. It is within this framework that the course of action must be determined and the follow-up to the employment policies referred to in this important Convention must be ensured. This action must clearly take into account the elements indicated by the Committee of Experts in its report, that is, coordination with the economic and social policy of the country, including the Strategic Plan (PEG 2025–29) to which the Government representative referred, and the compilation of statistics to evaluate the outcome of employment policies.

It is in this forum that a way forward must be sought to address the specific challenges specified by the Committee of Experts, that is, the low labour market participation rate of women and youth unemployment, which are major concerns for us.

Prolonged blockades of national roads and unlawful work stoppages, which have seriously affected labour stability and the operation of enterprises, particularly micro and small enterprises, do nothing to help create and maintain jobs. These are acts that we condemn as violations of the freedom to work, freedom of enterprise and of movement and, ultimately, legal certainty.

Government member, El Salvador – On behalf of the Government of El Salvador, we express our appreciation to the sister Republic of Panama regarding the application of the Convention. We recognize the efforts made by the Government to guarantee the right to decent work through public policies aimed at promoting dialogue and productive and freely chosen employment, in accordance with its Constitution and international labour standards.

As member countries of the Council of Ministers of Labour of Central America and the Dominican Republic, we have had the opportunity to experience first hand Panama’s good practices, which link education with employment policy. In this regard, we welcome the fact that Panama has responsibly taken on the challenge of leading collective efforts for the implementation of modern and innovative active employment policies, the digitalization of public employment services, the promotion of equality of opportunity, and the implementation of comprehensive strategies for the transition from informality to formality.

We wish to emphasize that this commitment is not isolated, but is part of a vision shared by countries in the region, which recognizes the importance of addressing in a coordinated manner structural challenges, such as the digital transformation, the impacts of climate change and the need for sustained investment in education and lifelong vocational training.

The modernization of public employment services and labour market observatories is an objective that we are pursuing mutually to improve outreach to the population. These are indispensable instruments to ensure successful employment policies, decent work, effective social dialogue and the protection of workers.

We welcome with enthusiasm and confidence the role of our neighbouring country, Panama, in the impetus of a human-centred national and regional agenda, and we encourage it to continue making the necessary efforts to ensure effective compliance with international Conventions. We are willing to continue sharing good practices in future regional forums, and look forward to doing so.

Worker member, Canada – I share this statement on behalf of the Canadian Labour Congress. The report of the Committee of Experts on the application of the Convention in Panama clearly states the need for a coherent employment policy, sustained in tripartite social dialogue, which guarantees full, productive and freely chosen employment. However, what we see today in Panama is a profound contradiction between these principles and the national reality. It is impossible to establish an employment policy based on dialogue if freedom of association is not first guaranteed. And in Panama, unfortunately, that guarantee is absent. The Worker members would like to express our deepest concern at the attacks on Panamanian trade union organizations: freezing of accounts, intervention in mutual societies, prosecution of leaders, arbitrary arrests and repression of social protests. All this is happening with the support, and even the pridefulness, of the Government itself, which in public statements has openly stated its refusal to enter into dialogue with the trade union movement. This situation, incompatible with the founding values of this Organization, undermines not only freedom of association, but also any real possibility of formulating a participatory, inclusive and effective employment policy. We therefore urge this Committee to send a clear signal. And we ask the Office to deploy the maximum efforts to offer Panama technical assistance and accompaniment, with the objective of re-establishing minimum conditions of legality, social dialogue and peace. The workers of Panama are not alone. This Committee must contribute to open a path to a solution.

Employer member, Costa Rica – The Costa Rican employers welcome the opportunity to speak at this forum regarding the case of Panama, in the context of following up on the application of the Convention. As part of the mandate of this Organization, active employment policies must be promoted in a comprehensive manner, which takes into consideration both institutional developments and structural challenges. In this regard, we recognize the substantive efforts made by the Republic of Panama to strengthen its national employment strategy under the Decent Work Programme 2024–27. Key initiatives include: the implementation of youth employment policies; the establishment of the National Labour Observatory; the launching of vocational guidance programmes; and a set of specific actions to promote gender equality in the labour market. Furthermore, social dialogue has been strengthened through active tripartite round tables. It is particularly important to emphasize the role of CONEP as a stakeholder committed to the development of the country. Its participation has been technical, constant and proactive, and it has contributed to both the design and follow-up of public labour policies, and has promoted the principles of sustainable economic development and decent work.

However, it is also necessary to point out that the efforts to build an environment conducive to formal and productive employment have been hindered by external factors beyond the control of employers. These include events such as the mining contract being found unconstitutional, the prolonged blockades of national roads and the unlawful work stoppages that have seriously affected labour stability and the operation of enterprises, particularly micro and small enterprises. Such acts, which in many cases were carried out at the margins of social dialogue, are in violation of the right to work, free enterprise and legal certainty. As employers, we cannot ignore the fact that these circumstances represent a serious threat to the creation of formal employment, investment and social peace. Without a predictable environment and full respect for the rule of law, it is not possible to make progress on the issue under examination. The Costa Rican employers express their profound solidarity with their Panamanian counterparts and emphasize the need for the efforts for the implementation of the Convention to be examined in their real context. It is not possible to have productive employment or effective policies if the principles of legality and peaceful coexistence, which underpin development, are violated. We therefore trust that this Committee will be able to recognize the progress made by Panama and the commitment of employers. We consider that the examination of this case should not be confused with a failure to comply with obligations. It should instead be seen as part of a dynamic process requiring the support of all stakeholders, that is, the tripartite system itself.

Worker member, Argentina – I am speaking on behalf of the three Argentine confederations: the General Confederation of Labour of the Argentine Republic (CGT RA), the Confederation of Workers of Argentina (CTA Workers), and my union, the Confederation of Workers of Argentina (CTA Autonomous), and on behalf of the Brazilian confederations. In the case of Panama, the Committee of Experts has made a series of observations that indicate considerable gaps in terms of access to and conditions of employment, noting a high rate of informality, an increase in temporary contracts, youth unemployment and low levels of participation by women in the labour market, which shows the failure of the Government’s Strategic Plan 2020–24, and other plans, such as the national register of own-account workers, which was intended to improve informality rates, and the standstill of the ILO National Decent Work Plan.

As the Committee of Experts recognizes in its report, CONATO has denounced the lack of an employment strategy developed with the social partners, as shown by the high rate of informality, temporary contracts, the strong concentration of the economy in specific sectors and regions, with inequalities by region, ethnicity and gender. As we anticipated, the indicators continue to show that the employment policies designed by the Government have proven to be predictably ineffective and inadequate for the achievement of the objectives set out in Article 1 of the Convention. The Government does not allow criticism or dissent, and endeavours by all means to prevent trade union action that highlights the failure of the Government’s employment programmes. This explains the repressive action, such as the persecution of leaders, the arson committed on union premises and the financial stranglehold, all of which have been denounced by the National Confederation of United Independent Unions (CONUSI) and by the Single National Federation of Construction and Allied Workers (SUNTRACS) to the Committee on Freedom of Association (Case No. 3456). In that Case, reference is made to the murders of four persons who were participating in protests, arbitrary detentions, acts of intimidation against trade union leaders and the closure of their bank accounts, as reprisals against participation in the protests.

This means we are ever farther away from compliance with the employment policies required by Article 3 of the Convention and the obligation to consult with workers’ and employers’ organizations. The Government has unleashed a serious and inadmissible policy of persecution. It is not only in violation of the Convention, the basis of the Committee of Experts’ observation, but the conflict has escalated to constitute a violation of freedom of association and civil liberties. It is no coincidence that the rate of informality has deteriorated, reaching 49 per cent, and that the unemployment rate has risen from 7.4 to 9.5 per cent, according to the National Statistics and Census Institute (INDEC). Employment is generated by complying with the Convention and not by violating civil liberties and freedom of association, with fierce repression such as that used against first nation communities in recent days.

In conclusion, the Government is continuing to be in violation of the Convention. Its economic growth policies are not generating employment or improving the situation of workers. Structural inequalities associated with ethnic, regional and gender issues remain unchanged. The Government is forging ahead with its policy of repression instead of social dialogue and tripartite consultation. We demand an end to the persecution and financial stranglehold and demand the release of the detained union leaders.

Government member, Ecuador – The delegation of Ecuador welcomes the opportunity to intervene in this Committee and does so to express its support for the Government of Panama in the examination of the Convention on employment policy. Ecuador recognizes the progress made by Panama in the formulation and implementation of public policies aimed at promoting full, productive and freely chosen employment, in line with the principles of the Convention. We particularly appreciate the comprehensive approach adopted by Panama that covers education and vocational training, and the strengthening of public employment services through technological transformation, leaving no one behind. The Ministry of Labour of Ecuador notes with great interest the initiatives that Panama has been taking on labour migration policy and circular migration for the purpose of employment, in partnership with other countries in the region. We believe that these experiences represent good practices that contribute not only to safe and orderly labour mobility, but also to the economic development and social cohesion of all our countries. We welcome the country’s undertaking to invest in megaprojects that boost the economy and generate employment, as well as public–private partnerships that strengthen the participation of the productive sector in all labour policies. We also value the development of programmes aimed at the inclusion of persons with disabilities in employment and the initiatives undertaken in coordination with community justice peace centres, which promote access to work opportunities in particularly socially vulnerable contexts, thereby strengthening the link between employment, social cohesion and regional development.

We reiterate our appreciation to Panama for its commitment to the effective application of the Convention, and we call for this examination to be carried out in a constructive spirit, valuing the efforts made and the country’s constant willingness to continue strengthening its employment policies, with the support of the ILO and the participation of all the social partners.

Employer member, Honduras – It is an honour to address you to highlight the significant progress that Panama has made in labour policy, particularly in compliance with the Convention. The Convention urges States to adopt active employment policies with the principal objective of promoting full, productive and freely chosen employment. These are principles that, in our opinion, Panama has integrated into its employment policy seriously and with commitment. We have seen how, in close collaboration with the private sector represented by CONEP, significant progress has been made in consolidating a labour market in Panama based on stability, formality and respect for labour rights. We are pleased to see that, according to information provided by the Government, which has been confirmed by the country’s employer representatives, flagship programmes have been launched, including the employment integration support programme, Aprender haciendo, the “I comply” (Yo sí cumplo) programme for employers, and the vocational training and employment programme (POVE). These programmes, which were in force between 2019 and 2024, have been fundamental in the promotion of training, employability and the recognition of best practices in the field of labour.

In addition, the Strategic Employment Plan 2020–24 and the Decent Work Plan 2024–27 reaffirm the commitment to an inclusive tripartite dialogue, in which the Government, employers and workers actively participate in the development of effective labour policies adapted to the country’s needs. Only in an environment of respect and constructive dialogue can it be ensured that public policies achieve their objectives, benefiting the entire population and strengthening the stability that Panama has generated throughout its history. On this point, it is essential to highlight the importance of respect for the rights and protections of all citizens, particularly in contexts involving demonstrations and road closures, which disrupt freedom of movement and, in turn, the right to work. It should be recalled that no right is absolute, as all rights are limited by the rights of others, the security of the population and the just requirements of general well-being and democratic development.

In conclusion, Panama has openly and confidently shown its efforts to maintain a solid, fair and sustainable labour market through the application of active employment policies, which have been developed in collaboration with the various social partners, highlighting the participation of Panama’s employers. We therefore always encourage these partners to continue complying with the Convention in an inclusive manner.

Worker member, Sweden I am speaking on behalf of the workers of the Nordic region. Today, I wish to raise my voice for those women in Panama who continue to be excluded from the formal labour market in terms of both employment and consultation. As noted by the Committee of Experts, although the Government has indeed adopted plans, the reality is that gender inequality persists, and at an alarming level. In 2023, and according to the data of the ILO Department of Statistics, only 46.1 per cent of women were employed, compared with 70.4 per cent of men. These figures are not only statistics, but they are also a reflection of an economic structure that continues to exclude and be unequal. The high concentration of women in the informal economy therefore shows that the current policies are failing to change the structural conditions that perpetuate inequality in society.

We must be clear. In accordance with Article 3 of the Convention, which the Republic of Panama has ratified, governments are required to consult the social partners in the formulation of employment policies. However, in Panama, these consultations have been limited and, in many cases, symbolic. The lack of adequate social dialogue undermines the legitimacy and efficiency of any public policy for the labour market, including those aimed at strengthening the position of women. Furthermore, we observe with concern the developments in the situation in Panama, where trade union representatives are being persecuted. We wonder how trade unions can be consulted, as required by the Convention, if at the same time their leaders are being persecuted. In conclusion, the Nordic trade unions align themselves with the recommendations and requests made by the Committee of Experts on the labour market participation of women and highlight, in particular, the specific request for information on the consultations held with the social partners.

Government member, Costa Rica – The Government delegation of Costa Rica welcomes the opportunity to speak in this Committee and wishes to express its support for the Republic of Panama in the context of the examination of compliance with the Convention. We appreciate the efforts made by the Government to strengthen its public employment policies, taking into account the structural and economic challenges faced in the region. We have observed Panama’s willingness to provide a space for dialogue at the subregional level, to enrich the vision and approach at the national level, based on the exchange of good practices and experiences in the Council of Ministers of Labour of Central America and the Dominican Republic. Recently, a subregional agreement was concluded on the Plan of Action 2025–27 to focus efforts on strengthening public employment systems, labour inspection and formalization, with the aim of combining efforts to build a fairer, more equal and more resilient labour environment. We draw particular attention to the technical exchange that has taken place and will continue to take place in the coming years regarding public employment services, vocational training, active labour market programmes and formalization strategies, areas in which Panama has demonstrated a willingness to seek continuous improvement.

As part of our close bilateral collaboration, we wish to highlight the work carried out jointly by Costa Rica and Panama through the Agreement on the Coordination Mechanism for Migration Flows for Employment and Occupation, concluded in 2015 by our Ministries of Labour. This Agreement established a bilateral technical committee responsible for examining and promoting good practices and measures to improve the traceability of the migration flows of the Ngäbe Buglé population, who traditionally migrate from Panama to Costa Rica during the coffee harvest season. In this technical forum, both countries have made commitments to ensure safe and orderly labour migration, with emphasis on the protection of human rights.

This initiative reflects a genuine commitment by both States to promote decent work, labour market integration, the promotion of ethical recruitment and the regional coordination of public policies, in accordance with the principles set out in the Convention. In this regard, we call for the examination carried out in this Committee to be based on a balanced and constructive vision, recognizing the achievements. The recommendations issued should contribute to the further strengthening of national capacities to develop and implement effective employment policies. We also highlight the added value of the action developed through tripartite dialogue, with the provision of ILO technical assistance where necessary and appropriate. Costa Rica reiterates its commitment to strengthening decent work in our subregion and its willingness to continue collaborating with Panama and other neighbouring countries to promote comprehensive, resilient and sustainable public policies formulated through social dialogue.

Worker member, Peru – I am speaking on behalf of the trade union confederations of Peru and the TUCA. In view of the lack of a definite employment strategy formulated with the social partners, and of coordination between the programmes implemented to promote employment opportunities, as well as the absence of development plans with continuity, and we are not talking about isolated initiatives, as we have heard in this room, the Committee of Experts noted with interest the conclusion on 8 April 2024 of the Memorandum of Understanding of the Decent Work Country Programme 2024–27 by the Government and the social partners, including representatives of the National Decent Employment Commission (CONED), CONATO and CONUSI, with the participation of the ILO. This is the tripartite forum for the discussion of employment policies. As we see, this initiative was carried out with social dialogue, tripartite consultation and ILO technical cooperation and assistance, which we welcome. However, today we note with regret that a little over a year has gone by and the Government has frozen the implementation of the Decent Work Programme and the functioning of the tripartite follow-up committee. We recall that this Programme constitutes the main framework for the achievement of the four pillars of the Decent Work Agenda: employment, social security, social dialogue and fundamental rights. This is no small matter. We have moved from a climate of social dialogue to one of repression and persecution of trade union leaders for criticism or dissidence in defence of decent work, such as the adoption of a social security reform without consultation and the failure to respect freedom of association.

The situation has progressed from a discourse by the Government delivered by the Minister of Labour who, at the time, advocated public employment and occupation policies from a human rights perspective, and who always called for respect for fundamental rights in labour relations, to actions that do not promote employment, but instead restrict freedom of association, weaken trade unions and criminalize protests. This situation is already known to the ILO through the complaint in Case No. 3456. It is not only this Convention that is affected, but also fundamental Conventions, such as the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), and Convention No. 144. It is therefore important for the Government to return to the path of social dialogue for the development of employment policies, of course with ILO technical assistance, and with minimum guarantees for the participation of trade unions (including the guarantee that they have facilities for participation and financial resources, through the release of their trade union dues, and to reactivate the tripartite follow-up committee of the Decent Work Programme. For an employment policy to be implemented, it has to be consistent with economic and social policy in a country without social conflict, a country that is open to social dialogue, a country that promotes decent work and its four pillars, including the unrestricted respect of freedom of association. Finally, I wish to emphasize that it grieves the Worker members that the Government is not promoting social dialogue, and it grieves us that Panamanian workers are in the streets and are not working in order to claim their fundamental rights, without being heeded.

Government member, Honduras – We have reviewed the report submitted by Panama, the request for information from the workers and employers and the respective responses during the regular reporting period. As we know, the Convention seeks to promote full, productive and freely chosen employment. In that regard, we acknowledge the efforts that Panama has been making to design and implement an employment policy, in consultation with the social partners and in line with its national development priorities.

We welcome the results obtained by Panama in the field of public employment policies. As part of those policies, 52 recruitment days were organized at the national level in the second half of 2024, offering 2,021 job opportunities. So far in 2025, 60 recruitment days have been held at the regional level, with 4,685 vacancies on offer. Similarly, as part of the Council of Ministers of Labour of Central America and the Dominican Republic we have learned how vocational training and labour market integration strategies, together with labour market data compilation and analysis, are key factors in strengthening public employment systems. We reiterate that employment policies must always be aimed at strengthening stability and the labour rights of the working class.

We recognize that there are challenges in this area, as we are still recovering from the stagnation caused by the COVID-19 pandemic. We therefore welcome all the technical assistance that the ILO can provide to strengthen public employment systems, labour market observatories and forums for tripartite dialogue. The latter represent a key driver in promoting democratic coexistence. To continue making progress, it is important to give priority to social dialogue, together with workers, who provide labour, and employers, who provide capital.

Worker member, Uruguay – I am speaking as a representative of the workers of Uruguay, and particularly from the education sector. The Convention indicates in its Preamble that “productive and freely chosen employment” should be a central objective of any economic and social policy, and Article 3 sets out the requirement for effective consultation with the social partners. In Panama, however, this basic requirement has been breached. Since 23 April 2025, the education sector trade unions, including teachers’ unions, have been on indefinite strike, demanding the repeal of Act No. 462 on social security. Over the past six weeks, thousands of teachers have lost classes and wages while the Government has proceeded to criminalize the protest. The pressure does not stop there, as teachers have been prosecuted, arbitrarily imprisoned and repressed in public demonstrations. The Ministry of Education, with the Government’s support, has announced that it will not negotiate. This situation is incompatible with the effective application of the Convention. There can be no sustainable employment policy or strong education system if the State is persecuting educators and workers’ representatives. Repression instead of dialogue prevents the development of social consensus and undermines public policies. We recall that the strength of a country to promote employment depends on the existence of legitimate, organized and free partners. However, Panama is weakening the third partner of tripartism, the workers.

The political defence put forward by the employers in this room seems to confirm this, even through the use of rash terms, such as “unlawful strikes”, endeavouring through the use of force to establish education as an essential service and the questioning of court rulings that have prevented the violation of the Constitution are all part of the problem. Faced with this situation, the Worker members request the Committee to issue an urgent call to the Government to immediately cease the repression of teachers’ unions, release the teachers who are being prosecuted, provide guarantees for their safety and open a real channel for tripartite social dialogue that complies with the requirements of Article 3 of the Convention. We also call on the ILO to intervene immediately to mediate in the conflict and redirect this process towards a space of social peace, inclusion and development. The credibility of the tripartite system is at stake.

Worker member, France – I would like to express our deep concern at the situation in Panama, which has a direct impact on the provisions of the Convention on employment policy. This Convention emphasizes the importance of an active policy to promote full employment and, above all, the need to consult employers’ and workers’ representatives for that purpose. In Panama, however, the capacity of trade unions to participate in social dialogue is being seriously undermined. The restriction of access to union funds, as in the case of SUNTRACS, is an obstacle to the functioning of trade unions, which in turn limits their capacity to represent workers effectively in consultations on employment policies.

In addition, the action taken against trade union leaders, including arbitrary detention and the failure to approve the establishment of support structures, such as cooperatives, are creating an environment that does not encourage the free and effective participation of workers in social dialogue. The Government has even tightened restrictions on the resources available to trade unions to properly carry out their function of social dialogue. The Government has also limited the access of trade unions to their financial resources by arbitrarily freezing their bank accounts (as in the case of SUNTRACS). As set forth in the Convention, the promotion of full and productive employment requires robust and unrestricted social dialogue. When workers’ organizations are prevented from operating freely, from using their own resources, from participating, the essential basis for the development of equitable employment policies is undermined. For all these reasons, it is fundamental to restore in Panama the conditions to enable the establishment of genuine social dialogue that ensures the full participation of workers’ representatives, in accordance with the provisions of the Convention.

Worker member, Costa Rica – I am speaking on behalf of the workers to express our deep concern at the situation in Panama in relation to the principles of the Convention. I would like to focus on two essential aspects for compliance: the effective application of a comprehensive employment policy that ensures labour market integration, and social dialogue, and the active participation of the tripartite constituents in such a policy.

In the first case, non-compliance is clear and evident. There is neither a national employment plan nor a comprehensive employment policy that meets the needs of the population in general and of young persons in particular. Government programmes are more bureaucratic than robust, without sufficient data or statistics to assess their relevance, real results and meaningful impact on labour market integration. They have frequently been used to lower business costs and make employment and recruitment more precarious. They are programmes without tripartite consultation, unconnected with each other and inconsistent with a comprehensive framework of pro-employment investment policies. Collective bargaining is marginalized in these programmes, which do not cover the transition to formality or adequate gender mainstreaming.

Second, it is undeniable that there is no social dialogue or tripartite consultation in this field. The Decent Work Programme is at a standstill without any progress. Trade unions are excluded from participating in the formulation, adoption and implementation of a comprehensive employment policy. In addition, the lack of freedom of association and the Government attacks on trade unions and their leaders make social dialogue unfeasible. Trade union rights are being severely violated, stripping trade unions of their means of institutional strengthening, as is the case with the suspension of training insurance, which is financed by workers’ contributions, which should therefore be available to trade unions for their training and capacity-building activities, which are vital to address and overcome the problem of decent employment. According to the observations of the Committee of Experts, it is clear that there is no identifiable progress. The employment problem has worsened, causing a further deterioration in workers’ standard of living. The most serious aspect is the absence of dialogue and the exclusion of trade unions from this area, preventing their democratic participation and respect for freedom of association, and with trade union confederations being subjected to constant Government aggression. Finally, we ask the Committee to note this terrible situation and to request the Government to comply with the principles of the Convention, allow the indispensable tripartite participation for the adoption a comprehensive employment policy, immediately cease its arbitrary attacks on trade unions and their leaders, and guarantee freedom of association as a pillar of social dialogue.

Worker member, Mexico – I am speaking on behalf of the National Federation of Workers of Mexico (UNT). The Convention and its accompanying Recommendation are fundamental governance instruments which establish principles for the achievement of sustainable development focused on employment and place emphasis, among other areas, on the promotion of decent employment in the public and private sectors, social protection and social dialogue.

The failure to apply these essential principles in the formulation of coherent, comprehensive and integrated frameworks for employment policies has had serious consequences, as well as the adoption of reforms in the field of social protection. This has included an increase in contribution weeks for entitlement to a pension, and the authorization for 10 per cent of the funding of the invalidity, old-age and survivors’ programme to be managed by private banks, which is threatening the model of social security based on solidarity in Panama. Attacks on the assets of trade unions through the retention of union dues are reducing their economic capacity, which is in turn weakening their capacity to develop their plans of action and therefore restricting freedom of association. Another example is the audits practiced on unions in relation to the Education Insurance Fund, composed solely of the contributions of workers in the public and private sectors and of employers based on the basic wages paid, of which only 5 per cent of the monthly total is assigned to trade union education and training. Other activities are financed, including the administration and staff of the Panamanian Institute of Labour Studies (IPEL), which administers the Fund and forms part of the Ministry of Labour and Workforce Development. It should be emphasized that no audits have been practiced on the IPEL, but they have been carried out on the unions. Under the presumption of the undue use of resources, funding has been unlawfully retained from the training activities approved and carried out. New allocations of funds have been paralysed, in the same way as occurred in Panama over 13 years ago, following the 101st ILO Conference in 2012.

The persecution of the leaders of unions and other organizations is complicating still further the exercise of social dialogue in the country, and accordingly the right to collective bargaining, the founding principle for the formulation of employment policies, which has resulted in workers in various sectors being forced to have recourse to the exercise of the fundamental right to strike. These actions demonstrate the intention to limit and undermine the participation of unions in the formulation of public policies for decent employment. How is it possible to participate in the formulation of effective and coherent public employment creation policies when unions and their leaders are suffering persecution? Accordingly, for the action taken in Panama to be considered effective and coherent in order to give effect to the Convention, it is essential to guarantee tripartism in practice in the formulation, implementation and review of employment policies. Without agreement between the partners, such policies can only be considered to have been formulated in bad faith.

Observer, International Trade Union Confederation (ITUC) – I am addressing this Committee on behalf of the trade unions in Panama which are affiliated to the TUCA. I am doing so with deep concern at the situation that is affecting our country, which is not only failing to comply with the Convention at the structural level, but has also entered an alarming phase of the blatant criminalization of trade union activities. The Convention establishes, in Article 3, the requirement for States to consult the social partners for the formulation and implementation of employment policy. But what social dialogue can exist if the unions are being persecuted as if they were criminals? I want to speak clearly about what is happening to SUNTRACS, one of the most important organizations in our country. Its Secretary-General, Saul Méndez, is currently in isolation in the Embassy of the Plurinational State of Bolivia after receiving death threats and being the subject of a systematic campaign of political and judicial persecution. The ILO must be aware that this is not an isolated denunciation, but rather a critical and verifiable situation.

Another national leader of the union, Genaro López, was imprisoned in a maximum security prison, and is now under house arrest due to his state of health. The real reason for his detention is being a trade unionist and fighting for collective rights. The authorities of Panama have gone as far as offering monetary rewards to citizens for information on the whereabouts of trade union leaders, including Erasmo Cerrud, as if they were dangerous criminals. As if this was not enough, the Government has blocked the bank accounts of the union, which is directly affecting its functioning and its capacity to provide essential services, such as the self-managed mutual fund for health and social welfare that SUNTRACS has built up over decades. This is a direct violation of trade union rights, the right to collective bargaining and freedom of association. With this level of institutionalized repression, there is no room for the application of the Convention. The conditions do not exist for social dialogue. There is no possibility of developing sustainable and participatory employment policies through tripartite cooperation when one of the essential actors – the workers – is being persecuted, silenced and deprived of its resources.

We want to make it very clear that it is not possible to talk of employment policy without freedom of association, and it is not possible to talk of social dialogue when the Government publicly denies any form of negotiation and takes pride in “economically drowning the unions”, as stated by the President of the Republic himself in the media. We therefore call on the Committee to adopt strong recommendations requiring the following of the Government of Panama: the immediate cessation of the repression against SUNTRACS and all trade unions; the restitution of blocked trade union assets; guarantees for the safety and freedom of all persecuted union leaders; and the urgent opening of genuine social dialogue under the supervision of the ILO, as an essential step for the recovery of the democratic institutions of the world of work. We are worried about our return to Panama as we fear for our lives and the high level of repression suffered by trade union leaders in our country.

Observer, Building and Wood Workers’ International (BWI) – Article 3 of the Convention explicitly mandates that representatives of employers and workers must be meaningfully consulted on employment policies, with the objective of incorporating their insights and securing their full cooperation. This requirement is inextricably linked to the full respect for freedom of association and the right to collective bargaining, as enshrined in Convention No. 87 and the Right to Organise and Collective Bargaining Convention, 1949 (No. 98). Regrettably, the current situation in Panama demonstrates a clear and troubling deviation from these obligations. Since November 2023, the BWI affiliate SUNTRACS has been subjected to a sustained campaign of repression in response to its leadership of public protests against mining legislation and proposed social security reforms. This campaign has included arbitrary arrests and acts of intimidation. In recent weeks, the crackdown has intensified: union offices have been raided; bank accounts have been frozen; legal registration has been revoked; and arrest warrants have been issued for the entire leadership. Saúl Méndez has been forced to seek political asylum. Jaime Caballero is detained. Genaro Lopez is under house arrest. Erasmo Cerrud is being hunted down. These actions are occurring in the context of a national strike launched on 28 April. More than 120 SUNTRACS members, including both leadership and rank-and-file members, are facing criminal prosecution simply for exercising their legitimate right to peaceful protest. The BWI recalls the March 2025 recommendations of the Committee on Freedom of Association (Case No. 3456), which urged the Government of Panama to immediately restore SUNTRACS’ access to its financial resources and to provide protective measures for its leadership. To date, these recommendations have not been implemented. We call upon the Government of Panama to fulfil its international obligations, end the persecution of trade unionists, immediately withdraw arrest warrants, release those who are detained and fully restore trade union rights.

Observer, International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations (IUF) – The Convention requires Member States to adopt and pursue an active policy designed to promote full, productive and freely chosen employment which aims to stimulate economic growth and development, raise levels of living, meet manpower requirements and overcome unemployment and underemployment. Contrary to the spirit and content of this Convention, the Government of Panama has adopted Act No. 462, which workers fear will reduce social security protection, especially pension provision. The changes will hit hardest health, education, construction and banana workers. For the banana workers, the new Act is placing at risk the gains and provisions of Act No. 45, which recognizes the hardship of the work in banana plantations and gives banana workers the possibility to retire based on years of service rather than at a fixed age.

The workers went on to protest the changes. Since April, the workers’ protest actions and demonstrations have been met with police repression and threats of legal action by the Government. Union leaders fear for their safety and some have been forced into hiding. On 27 May, the Government declared a state of emergency in one of the main banana-producing areas, Bocas del Toro, increasing tension and fears of repression. In the same days, the company responsible for 90 per cent of Panama’s exports suspended 5,000 daily workers. It was followed by a further announcement that it will suspend all its administrative, planting, packing and export operations in Bocas del Toro. This decision will hit Panama’s economy, for which bananas are vital. They are the country’s main export, representing 17 per cent of foreign sales. The Banana Workers’ Union (SITRAIBANA) denounced the sackings, which they believe do not respect the procedures of the law and represent a manoeuvre by the companies in collusion with the Government to eliminate unions. We are aware that the Government has sent an investigative team to Bocas del Toro, and there is a proposal from Archbishop José Domingo Ulloa to introduce a bill, agreed upon with unions, that would restore workers’ benefits, but only if the union blockades end. However, repressive measures against all union leaders, like those that are faced by SUNTRACS, have eroded union confidence in the Government. We urge the Government, as an act of good faith, to move ahead immediately and unconditionally with the bill to protect Act No. 45 and to take immediate measures to restore social peace based on the full respect of freedom of association and collective bargaining.

Government representative – First of all, I would like to express our most sincere appreciation to the social partners for each of their precious interventions. Their comments and contributions are fundamental for the continued construction of a public policy that is genuinely inclusive and effective with a view to the development of all the sectors of our society. May I first briefly address the subjects that have been raised, particularly to place emphasis on the progress that we have achieved in the coordination of employment policy with the economic and social policy of the country. I wish to place special emphasis on the consultations held with the social partners in relation to the formulation, application and follow-up of active labour market measures. In 2022, a technical working round table was established for the formulation of a practical guide on vocational guidance for young students with the participation of various institutions, such as the Ministry of Labour, the Ministry of Social Development, the Ministry of Education, the Chamber of Commerce, the National Competitivity Centre, CONATO and CONEP. This is a clear example of how we are moving forward towards greater collaboration for the development of policies that respond effectively to the needs of the population.

With reference to the issue raised of the labour market participation of women, I would like to emphasize the progress achieved through the Public Policy for the Employability and Labour Market Integration of Young Persons and Women (PEIM). More specifically, I refer to the Impulsa mujer project, which has the objective of promoting equality of opportunity for women, and particularly those who are vulnerable. Since its creation, significant results have been achieved, such as the recognition of 16 legal personalities at the national level, of direct benefit to over 2,500 persons and providing income through cooperatives, which is contributing to the reduction of gender gaps in communities. This project continues to be a fundamental pillar of our strategy to ensure the economic independence of women and their inclusion in enterprises. It consists of three phases intended to create opportunities in communities through the development of cooperatives providing various types of services.

I would also like to underline the recent adoption of the Public Policy for Equality of Opportunities for Women (PPIOM) 2024–34, within a strategic framework intended to make progress in gender equality in Panama over the next decade. This policy addresses key aspects, such as legal equality, economic autonomy, the political participation of women and action to combat discrimination, especially in rural areas. The Economic Agenda for Rural Women in Panama is another important milestone in this process and seeks to reduce gender gaps and ensure the inclusion and empowerment of women throughout the country. In the context of our agenda of institutional modernization, we have taken decisive steps for the transformation of the Labour Market Observatory by aligning it with international standards and better practices. In this process, we have benefited from the valuable technical support of the Labour Market Observatory of Spain, with which we have had important exchanges and strategic dialogues. This technical cooperation has reaffirmed our commitment to the evidence-based management of employment, which makes it possible to take informed decisions and design more effective public policies for the development of skills in Panama. The Labour Market Observatory of Spain, managed by the State Public Employment Service (SEPE), fulfils various key functions for the analysis and improvement of the labour market. We trust that, in view of the progress that has been made by the Observatory in Spain, our own Observatory will improve the effectiveness and efficiency of employment policies, on the basis of which we will be able to facilitate the adequate matching of supply and demand on the labour market.

As part of our efforts to promote the transition from informality to formality, I would like to place emphasis on Act No. 462 of 18 March 2025, which introduces various important reforms to the Social Security Fund (CSS) of Panama. The Act was the subject of a broad citizens consultation process with the participation of all the sectors of the country, as well as a debate in the National Assembly, and benefited from ILO technical assistance for an actuarial evaluation. The objectives of the reforms include promoting the transition from informality to formality, ensuring the sustainability of the invalidity, old-age and survivors’ scheme, and improving the quality of the management of the health system. These measures are necessary to prevent the collapse of the CSS pensions system. However, the reforms do not include an increase in the retirement age, on which there was much speculation. The significant aspects including the establishment of a single solidarity funded system, an increase in employers’ contributions in stages, a rise in the levels of penalties for non-compliance and the introduction of a system of automatic registration through a link with MITRADEL, which should be operational within 24 months of the Act coming into force. These and other plans are being developed, both by MITRADEL and at the national level. For example, in care systems, we are seeking to establish carers certified by the INADEH as potential employers through the public employment service. In parallel, we are developing alliances with UN Women to promote cooperatives of carers and strengthen the valuable work that they perform. The National Directorate of Employment, through the public employment service, provides support to the migrant population resident in the country in order to guarantee their access to formal employment opportunities. This is done through the platform www.empleospanama.gov.pa, through which they can apply for vacancies published by the private sector. The migrant population can also participate in the various focused recruitment projects organized by this Department at the national level. In coordination with the International Organization for Migration (IOM), we are implementing a vocational training and employment programme, which has identified vulnerable young migrants through the Piénsalo dos veces (“think twice”) programme. These young persons are provided with psycho-social support by our team of psychologists and social workers to provide them with tools and guidance with a view to facilitating their integration into the formal labour market while they finish their studies or once they have completed them.

In our commitment to regional cooperation, we have held strategic meetings recently with our counterparts in Costa Rica, within the framework of the existing bilateral agreement, with a view to the traceability of our Ngäbe Buglé nationals in Costa Rica, who migrate to work on coffee plantations during the coffee harvest. We have established a specialized round table where we are developing a circular labour migration protocol which represents significant progress in the orderly exchange of specialized labour and the implementation of good practices in cross-border employment. In this context of the modernization of regulations, we have also adopted Executive Decree No. 6, of 11 March 2025, which establishes a comprehensive framework so that foreign nationals can regularize their migrant status in Panama, thereby facilitating their access to legal work and regular residence, and therefore supplementing the broad range of work permits that we already have.

Over the next year, we have assumed the commitment in relation to the Inter-American Labour Administration Network (OEA) to organize a specialized workshop on the articulation of education and work in our country in the context of the preparatory activities for the XXIIth Inter-American Conference of Ministers of Labour, of which we are part of the Troika. As a State, we express great concern as recently, as a result of unlawful and unjustified strikes, a multinational enterprise engaged in the production, distribution and export of bananas has ceased operations in Panama. That enterprise generated around 5,000 direct jobs and thousands of indirect jobs in the province of Bocas del Toro, where multidimensional poverty is 38.9 per cent, one of the highest rates at the national level. We are bound to express our concern on behalf of MITRADEL, as this constitutes a major socio-labour crisis. Each of the workers affected on average supports between five and six members of their nuclear families, which amplifies the effect on thousands of households. The Government has proclaimed a state of emergency in the Bocas del Toro area in an attempt, first, to establish effective dialogue with productive sectors with a view to preserving sources of employment, persuading the enterprise to rehire the dismissed workers and, at the same time, promote alternatives to allow the families concerned to re-establish their livelihoods and safeguard their dignity.

I take this opportunity to commend the valuable work of the ILO standards supervisory system and, with due respect, we also urge it to consider, in the observations of the Committee of Experts, the significant progress achieved in our region, as described in our reports. We give thanks for the observations and recommendations made to our Government, as they will help us to improve. Before finishing, I would like to express our greatest readiness to request and receive ILO technical assistance, which helps our country improve its strategic action. We will also display the continued commitment to maintain the transparency that decent work merits. We also wish to make it clear that we have 544 unions in Panama, and only one is taking systematic action to destabilize social peace.

Finally, I am bound to point out that, in accordance with the regular reporting schedule for the ILO, this year Panama is due to provide a report on the Convention, in which we will supplement the information that we have provided today, based on tripartite consultation with employers’ and workers’ representatives, as set out in Convention No. 144. We deeply regret that this distinguished Organization is being used to divert attention from the real labour challenges that we are facing as a nation. When workers’ representatives refer to trade union persecution, in reality the leaders of those unions are under trial for common offences, and the cases were in any event reported by workers themselves as fraud. We continue to be committed to constructive dialogue, institutional transparency and the strengthening of public policies for the creation of decent work and real opportunities for all the citizens of Panama, without distinction as to their origin, social condition or political affiliation. Before ending, and without entering into inter-union matters, it is important to emphasize that there are today two confederations that have publicly called on persons to demonstrate in the streets and for the streets to be available to them, which have been suspended from CONATO. However, I reiterate that today’s case does not refer to freedom of association, and we are here solely for Convention No. 122.

Worker members – The Worker members wish to close this examination by reaffirming, with the same force as when we opened the discussion, our deep concern at the situation experienced by the people of Panama and the repression suffered by the trade union movement in the country, It is very important to clarify that we are not interested in thinking as they think: on the contrary, we are able to think differently. We said it at the beginning of the discussion, and we repeat it even more firmly at its conclusion: what is at stake is not only compliance with a governance Convention, but also democratic coexistence within a framework of real freedom of association, social dialogue and the fundamental pillars on which this Organization is built. There can be no decent work without democracy based on the guarantee of the rule of law.

We want to specify that the comments of the Committee of Experts came before the strike was called, the repression by the State and the whole situation of social upheaval that is happening in Panama. Consequently, the criticisms and observations that we are able to make on the application of the Convention are earlier and show that there were already sufficient issues and problems. The report of the Committee of Experts is focused on that. I have therefore listened carefully to the Director of Employment, who indicated that it is important for the Committee of Experts to have knowledge of these facts for its replies and observations. We have said it from the beginning, and it was confirmed by all the interventions by Worker members: in Panama, there is no coordinated and sustainable employment policy. The Committee of Experts is clear and forceful in its report, indicating that the programmes described are not structural, are not evaluated and do not have an adequate budget or participation by the social partners.

What is most serious is that there is no dialogue. No consultation. No tripartism, which is also aggravated by the systematic exclusion and delegitimization which, from what I have heard, only applies to the trade union sector that we represent, and which is compounded by an exacerbated discourse of confrontation that is related to a specific political line, as we indicated in our opening intervention. Various Worker members have described this in detail and have provided specific evidence that there is no tripartite social dialogue and that the State is engaging in persecution in violation of the rule of law.

I repeat: we are not interested in thinking differently; on the contrary, there has to be more respect for us. The criminalization of social protest does not create the conditions for social peace, and there can be no tripartite social dialogue if the unions are weakened. In this context, how can it be claimed that effect is being given to the Convention? How can we speak of full and freely chosen employment in a context in which the defenders of labour rights are being persecuted? We believe that it is difficult and indeed almost impossible to ensure compliance with the Convention under these conditions. It is also impossible to ensure compliance with fundamental rights, or to maintain and guarantee a democratic society and sustainable economy with social justice.

There can be no solutions without diagnosis. There can be no dialogue without the recognition of others and there is no way forward if we deny the existence of the conflict. We therefore repeat that an intervention is urgently needed by the Director-General of the Organization. A direct, visible and firm high-level mission. General recommendations are not enough, even when all the requests that we have made, and those made by the Government and employers, are taken into account. Calls for good faith do not suffice. Specific action is needed to send a clear signal to the workers of Panama that they are not alone.

We repeat that technical assistance must not be peripheral or symbolic. It is very important to focus on re-establishing respect for social dialogue, guaranteeing the conditions for freedom of association and re-establishing respect for fundamental standards. It will not be possible to create and maintain employment without robustly calling on the Government of Panama to guarantee and respect freedom of association. We reiterate that, in our view, Panama is a regional priority, as what is happening in the country is a threat to the whole region. We welcome the position of the Government, as conveyed by the Director of Employment, because it is true that there will be an event in Panama, as I am the Chairperson of the Trade Union Technical Advisory Council (COSATE) of the Inter-American Conference of Ministers of Labour (IACML) of the Organization of American States (OAS), and I joined with the Ministers in issuing a statement in Bogotá which recognizes our status and with which it is necessary to comply, not only in this Committee, but also in the next American Regional Meeting, where we will issue a tripartite statement based on tripartite social dialogue. What we do not want to see is the consolidation of models of repression, models of violence against freedom of association and the denial of tripartism. What is at risk is not only the country, but also the ILO’s national and international system.

We are not confronted with a technical problem. We have before us a fairly deep-rooted conflict. It is affecting public freedoms and the very visibility of the system of tripartite governance represented by the ILO. Reference has been made here to outlining a model. If there is a model, it is that of Governments which attack socio-labour rights in our region. And we do not want this model. The generation of productive, decent and freely chosen employment, with the essential objective of social and economic policy, has to include the people, and never leave them outside. We obviously wish to thank the Committee. This is the last case concerning our region and we are looking forward attentively to hearing its conclusions. Panama is our priority. We have to strengthen tripartism. As it was a model at a different period with its tripartite dialogue commissions, it can be once again. Political will is needed to do so, which would be for the good of everyone.

Employer members – The Employer members wish to thank the various speakers who have taken the floor and expressed their views on this issue, including the Government representative. The Employers wish to recall that the Standing Orders of the Conference, in article 10(1)(b), provide that this Committee has the function of considering individual cases relating to the measures taken by Members to give effect to the Conventions to which they are parties. In this regard, we wish to reiterate that it is very important, in order to ensure the relevance of the discussion of cases by the Committee, for us to confine ourselves to the case under examination and to refer to the comments of the Committee of Experts.

We trust that the Committee will take into account the comments made during the discussion, and particularly those that referred specifically to compliance in both law and practice with Convention No. 122, which is the Convention that we are examining today. In light of the comments made and the discussions held today, the Employer members would like to recommend the following to the Government: first, with ILO technical assistance, establish projects and programmes that are focused on strengthening tripartite social dialogue and which protect the independence, parity and, in particular, constructive participation of the social partners. Second, it should continue working through tripartite round tables so that, with the involvement of everyone, and with the experience and knowledge of employers, workers and the Government, progress can continue to be made in relation to employment, with the objective of decent work, and in the transition from informality to formality. We wish to emphasize that the protests that are carried out must take into account and respect the fundamental rights of citizens and cannot endanger the life, health or safety of citizens. We recall that, in line with the comments of the ILO supervisory bodies, a climate of generalized violence affects industrial relations, and in particular the generation of decent work and sustainable enterprises. Finally, the Employers reiterate the importance of the existence of forums for tripartite social dialogue which allow the development of a more solid democracy and a path of greater consensus.

Conclusions of the Committee

The Committee took note of the written and oral information provided by the Government and the discussion that followed.

The Committee noted with concern the lack of effective and genuine consultation with representatives of workers’ and employers’ organizations regarding employment policies.

Taking into account the discussion, the Committee urged the Government to take, in consultation with the social partners, effective and time-bound measures to:

• ensure that employment policy promotes full, productive and freely chosen employment based on an economic and social policy that stimulates sustainable economic growth and development, raises levels of living and overcomes unemployment and underemployment including labour market access for young persons, especially young women;
• continue its efforts to combat persistent gender-based vertical and horizontal segregation in employment, the low labour market participation rate of women, and their high concentration in the informal economy and in that regard implement fully the Decent Work Country Programme 2024–27 and by using the guidance provided by the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204);
• ensure effective consultation with the most representative workers’ and employers’ organizations concerning employment policies;
• formulate, implement, monitor and review active labour market measures adopted in the context of employment policy taking into account the groups targeted.

The Committee requested the Government to avail itself of technical assistance from the ILO.

The Committee also requested the Government to provide a detailed report on the measures taken to implement the above recommendations by 1 September 2025.

Chairperson – I have the honour of giving the floor to the distinguished representative of the Government of Panama, the Director of Employment, Ministry of Labour and Workforce Development.

Government representative – On behalf of the delegation of the Republic of Panama, we note the conclusions of this Committee.

The Government of Panama notes with attention the conclusions that have been read out and, expressing our deep respect for the mandate of the ILO supervisory bodies, we welcome the opportunity to describe the progress achieved in the implementation of the Convention. We have provided specific information on the progress made in relation to employment policy, among which we emphasize:

• public investment in various economic sectors, including major infrastructure works, which are contributing to employment generation;
• various employment programmes, such as focused recruitment, Mi primer empleo and the labour market integration of persons with disabilities, with all these programmes being carried out within the framework of solid public–private collaboration, which increases their scope and impact;
• the vocational guidance programme for young middle-level students to promote informed decisions on their future careers;
• promotion of the digitalization of public employment services;
• the conclusion of agreements with the education sector to strengthen technical training for students:
• the implementation of public employment generation policies focusing on gender; and
• the reforms of the Social Security Fund (CSS).

We reiterate that unemployment in Panama is not only a result of structural labour market factors, but also of events that have had a direct impact on economic activity and labour stability, such as the ruling that the mining contract is not constitutional, the prolonged closure of roads at the national level and, in particular, unlawful strikes, which have had a negative impact on the conservation and generation of employment throughout the country.

Finally, we reaffirm our commitment to constructive dialogue, institutional transparency and the strengthening of public policies to promote decent work and create genuine opportunities for all the citizens of Panama. It is essential to emphasize that the responsible behaviour of the social partners also forms part of this national commitment. The maintenance of labour peace, respect for the law and the readiness to reach agreement are fundamental pillars in making progress towards genuinely inclusive and sustainable development.

We also welcome the ILO technical assistance that has been provided and we reiterate our commitment to providing regular information on the progress achieved in future in this respect.