Panama’s Ministry of Labor and Workforce Development has intervened to guarantee severance payments for over 200 employees of a waste collection company whose concession contract expires this week. Minister Jackeline Muñoz confirmed the agreement on Monday, January 12, following worker protests over unpaid benefits. The deal involves the company, Recicladora Vida y Salud (Revisalud), depositing more than one million dollars with the ministry to cover all worker entitlements.
The concession for solid waste collection in the San Miguelito District officially ends on January 18. Uncertainty about severance pay led employees to halt their duties, escalating a long-running dispute. Minister Muñoz met with both workers and company executives in a closed-door session to broker a solution.
“We were able to guarantee through two avenues that these workers’ funds remain in Panama,” Muñoz stated. [Translated from Spanish] “I understand the workers had great uncertainty that the company would leave and take the funds and not honor their payments. That is guaranteed today.”
The minister issued a firm deadline. Revisalud must deposit the total funds for all 204 operational employees by 12:00 p.m. on Tuesday, January 13. Failure to comply will trigger immediate legal action by the Ministry of Labor and Workforce Development (Panama) to secure the money. Muñoz expressed clear expectations for the company’s compliance.
Pathway to Payment and Worker Response
If the company makes the consignment, the formal dismissal notification process will begin. Each worker will receive a detailed breakdown of their entitled benefits. Payments will be available for withdrawal directly at the Ministry of Labor. The arrangement also allows workers to consult auditors and file objections if they dispute the calculated amounts.
Union representatives expressed cautious satisfaction with the outcome. Marcos Allen, general secretary of the Independent Union Federation, said the agreement provided security for the workers’ severance fund. He indicated operations would resume, granting the company a “vote of confidence.” Allen noted all parties were present during the negotiations and expected Revisalud to fulfill its commitment.
Minister Muñoz revealed that discussions over the liquidation process had been ongoing without consensus since an inspection in November. The ministry’s direct intervention this week forced a resolution.
Company Asserts Commitment to Legal Obligations
Following the meeting, Revisalud issued a public statement. The company affirmed its intention to meet all obligations as required by law. It clarified that its service provision contract concludes on January 18, not immediately. The statement aimed to address public concerns about its financial responsibilities.
“The end of the contractual relationship with the municipality does not, under any circumstances, mean non-compliance with our obligations,” the company communicated. [Translated from Spanish] “All wage obligations and social benefits will be paid in full in accordance with the law.”
Revisalud insisted it has maintained all salary and benefit payments on schedule throughout its tenure. The company stated the formal liquidation of employment contracts will proceed effectively once the contractual link concludes. Its message sought to project stability and legal adherence during a contentious transition period for San Miguelito’s waste management.
The district now faces the immediate challenge of ensuring continuous garbage collection. A contingency plan is active, but the situation highlights the fragility of essential service contracts. This week’s resolution focuses on worker rights, but the underlying service crisis requires a longer-term municipal solution. The guaranteed severance payments offer financial protection for employees caught in the administrative shift.