The Autonomous University of Chiriquí (UNACHI) has terminated an additional 50 administrative employees, bringing the total number of UNACHI staff dismissals to 90 as the institution grapples with a projected $25 million budget shortfall for 2027. Rector Absel Navarro confirmed the figure on Wednesday, stating that termination letters are still being distributed while other temporary staff cases remain under review.
The layoffs come as Panama’s Ministry of Economy and Finance pressures public universities to reduce payroll expenses, with UNACHI facing a projected 2027 budget of $90 million against a fiscal gap of approximately $25 million. Katherine Santamaría, secretary general of the UNACHI Employees Association (Aseunachi), said the union is preparing legal defenses for affected workers, particularly those with indefinite contracts and fixed budget allocations.
UNACHI Staff Dismissals Trigger Union Legal Response
Santamaría outlined a two-step legal strategy for terminated employees with more than three years of service.
“We are preparing to defend administrative staff with more than three years of service, hired indefinitely and with fixed budget lines” [Translated from Spanish]
The legal actions will proceed individually through reconsideration requests before the rector and appeals to the Administrative Council. The dismissed workers currently earn between 700 and 1,200 balboas monthly without supplemental pay, representing annual savings between 420,000 and 720,000 balboas for the university.
Union representatives questioned why the Ombudsman’s Office and Ministry of Labor have not intervened.
“We would like to know where the Ombudsman’s Office and the Ministry of Labor are given the evident violations of labor rights. We have not stopped working; So, we will call an extraordinary general assembly to define measures” [Translated from Spanish]
Aumentan los despidos en la UNACHI, cifra se eleva a 90 https://t.co/if42Kt6xsU
— Metro Libre (@MetroLibrePTY) November 12, 2026
Rector Rejects Salary Cuts as Illegal Without Legal Reform
Navarro pushed back against proposals to reduce salaries for regular faculty members, calling such measures illegal under current law. He denied committing to any salary reductions for tenured professors, who are protected by special legislation and acquired rights. A professor earning 7,000 balboas typically accumulated at least 25 years of service, making a reduction to 3,500 balboas legally unviable.
The rector argued that any effort to address high salaries must come through comprehensive legal reform affecting all public universities, not targeted measures against UNACHI alone.
“I never signed nor verbally expressed that I would make cuts to regular professors” [Translated from Spanish]
Government Pressure and Institutional Tensions Mount
Economy and Finance Minister Felipe Chapman publicly criticized the university’s pace of reform under Navarro’s administration. Chapman pointed to salaries at UNACHI that rank among the highest in the republic, some exceeding presidential compensation. The minister said the new rector promised changes that citizens demanded but have not materialized.
Union leaders described the government’s approach as creating a “siege of hunger” that prevents workers from transporting themselves or buying medicine for their families. They also raised concerns about potential usurpation of public functions, noting that authorities designated by the rector have not formally taken office yet continue signing documentation.
The union is demanding transparency regarding agreements between university authorities and the national government, calling for a technical working group and dialogue forum. An extraordinary general assembly is expected to determine next steps as dismissed workers prepare individual legal challenges through administrative channels.