Strike paralyses Panama Canal expansion construction works

The expansion of the canal has already been delayed by 14 months.

The Grupo Unidos por el Canal (GUPC), the consortium in charge of building the third set of new locks, said in a statement that "construction workers, union members are heeding the call to strike." Construction workers came normally to work Wednesday but remained "inactive" during the day.

Suntracs, with an estimated membership of 100,000 workers, called the indefinite strike after negotiations failed with the Panamanian Chamber of Construction. The Chamber of Construction offered to raise wages by 20% over four years but the Union asked for 20% per year. Across the country, 98% of the construction sites were on strike, reported Suntracs.

Last December, the consortium began to slow down the works, reaching just 25% pace by January, and threating to stop all construction works if the Panama Canal Authority (ACP) did not pay $1.6bn in costs overruns it presented. On 5 February GUPC carried out its threat to stop all works. Works resumed on 21 February on the condition that the two sides began negotiating the terms of a "long-term agreement" which was finally formalised 21 March.

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