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PANAMA BANANA WORKERS BID ON A PERILOUS BUSINESS.

Article Excerpt
A banana workers union in Panama has decided to acquire the assets of the Chiquita Brands operation in the country's western section to save the jobs of 3,000 workers. Officials of the union of the Puerto Armuelles Fruit Company (Pafco), presented a formal statement of intent on Feb. 2 to the government, whose agencies will act as arbitrator in the negotiation between the company and the workers. Union leader Jose Morris said that the plan is to form a cooperative that will sell its production to a German consortium, Anton Derbek.

The property consists of some 3,000 hectares of banana plantation in Puerto Armuelles in the province of Chiriqui. The company shut down its operations at the end of 2002 after having lost, a spokesperson said, about US$90 million over the preceding six years (see NotiCen, 2002-09-19). Chiquita originally offered to sell its assets to a cooperative provided that the coop sell its bananas to Chiquita. The union liked the cooperative idea, but rejected selling to Chiquita, preferring to deal with the German firm.

Morris explained that the purchase turns on a loan from the central bank, Banco Nacional. The loan would be guaranteed by the contract with Anton Derbek.

Pafco balked at the loss of the chance to get the fruit without the responsibilities that come with being an owner and employer. Pafco legal representative Virgilio Aizpurua said that the company had offered to buy the fruit, provide technical assistance, and finance 30% of the operation of the coop. He...

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