Panamanian President Jose Raul Mulino signed a new executive decree that establishes strict parameters for strikes in public services. The regulations, enacted on Wednesday, November 12, define which sectors are considered essential and therefore subject to special restrictions on work stoppages. This move immediately sparked a legal challenge from the nation’s largest labor confederation, setting the stage for a significant confrontation over workers’ rights.
Executive Decree No. 11 of November 11, 2025, specifically regulates Articles 485, 486, 487, and 488 of the Labor Code. It provides the legal framework for determining which public services qualify as essential, meaning they will operate under specific conditions during labor disputes. The affected sectors include energy, drinking water, public transportation, hospital services, ports, emergency operations, the Panama Metro, MiBus, the Panama Canal, and rescue, firefighter, and civil protection services.
Labor Unions Prepare Legal Challenge
The National Confederation of Trade Union Unity announced it will file an unconstitutionality lawsuit with the Supreme Court of Justice. Aniano Pinzon Real, president of the National Council of Organized Workers, confirmed his organization is analyzing the decree’s content to determine if it violates the constitutional right to strike. Union leaders argue the government is using the decree to severely limit their bargaining power during contract negotiations.
Labor Minister Jackeline Munoz defended the regulation during a press conference at the installation of the National Minimum Wage Commission this past Saturday. She insisted the decree is firmly grounded in existing labor law and necessary for public welfare.
“The truth is that this is a sector that opposes everything, and we have to think about the Panamanian people,” Munoz stated. [Translated from Spanish]
She repeatedly emphasized that the decree does not eliminate the right to strike but instead establishes limits to guarantee the continuity of essential services. The minister pointed out that current legislation already requires between 20 and 30 percent of personnel to continue working during strikes in critical sectors.
Government Defends Public Interest Stance
Minister Munoz framed the new rules as a matter of national responsibility during her remarks. She stressed the need to balance workers’ rights with the population’s basic needs, particularly access to food and medical care. Her comments highlighted the government’s concern that unrestricted strikes could paralyze the country’s most critical infrastructure.
“The strike is not being appealed, the right to strike continues. It is a right that all workers have, but it is also the right of the Panamanian people to have food,” the minister said. [Translated from Spanish]
She called for seriousness and responsibility from all parties involved. The government’s position maintains that no single sector should have the power to bring the nation to a standstill. This decreto ejecutivo represents the administration’s latest effort to assert control over critical national infrastructure.
Munoz concluded with a firm statement about the balance of power between labor and government. Her words underscored the administration’s determination to prevent any group from holding the country hostage during labor disputes.
“We have to be serious and responsible. That is precisely the call we are making today. All workers have the right to strike in the correct form, but we cannot harm the Panamanian people and we cannot let a single sector run the country. That cannot happen,” she emphasized. [Translated from Spanish]
New Notification and Verification Requirements
The decree establishes specific procedural requirements for strikes in companies providing public services. Unions must now notify the Ministry of Labor and Workforce Development (Mitradel) of any planned work stoppage. These strikes will be subject to government verification to ensure they do not affect national security, public health, or the country’s economic stability.
This verification process gives the government authority to intervene if it determines a strike poses a significant risk to the population. The regulations provide specific criteria for what constitutes an unacceptable impact on essential services.
The Chamber of Commerce, Industries, and Agriculture of Panama expressed its support for the new regulations. Business leaders argued that the measure provides necessary stability for the national economy and protects consumers from sudden disruptions in critical services. Their endorsement highlights the business community’s longstanding concerns about labor actions affecting transportation, energy, and port operations.
As the legal challenge moves forward, the decree remains in full effect. The Supreme Court’s eventual ruling will determine whether the government has successfully balanced workers’ rights with public welfare or overstepped its constitutional authority in regulating labor actions.