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AFL-CIO Opposes Panama Deal, Calls for Trade Policy Review

by James Parks, May 21, 2009

BREAKING: President Obama has delayed moving the Panama trade deal because of union objections. Read more here.

Congress should not consider the U.S.-Panama trade agreement until Panama implements labor law and tax reforms and the Obama administration lays out a comprehensive, principled trade strategy for the United States.

Testifying before the U.S. Senate Finance Committee today, AFL-CIO Policy Director Thea Lee said the union movement will oppose the Panama deal unless these issues are resolved.

The AFL-CIO has called on Panama to bring its labor laws into compliance with the International Labor Organization’s (ILO’s) minimum standards. For example, Panama’s laws effectively prohibit the forming of a union in most workplaces and seriously limit the right to strike. A growing problem in Panama are the laws that allow employers to circumvent unions by repeatedly hiring the same workers on a temporary basis, rather than hiring them as full-time workers, Lee said.

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