A subsidiary of United States banana giant Chiquita Brands plans to lay off all of its workers in Panama, the Government said , after a month-long strike that has ground its production to a halt.

Chiquita had already announced in May that it was sacking several thousand daily labourers out of its roughly 7000 workers in the Central America nation.

Company representatives informed the Government that this week they will be seeking to lay off the remaining employees, Labour Minister Jackeline Munoz told reporters.

Workers at the plant in the Caribbean province of Bocas del Toro, which relies heavily on tourism and banana production, went on strike on April 28 to protest against pension reforms.

The strike has led to more than US$75 million ($124m) in losses as well as road closures and product shortages in Bocas del Toro.

After negotiating with unions, President Jose Raul Mulino’s Administration agreed to draft a bill to restore labour benefits to banana plantation employees, but only if they removed roadblocks.

The unions refused to do so until the new regulations are approved.

Mulino has faced more than a month of protests against pension reform and other issues.

Today, police fired tear gas at demonstrators who blocked traffic with logs and rocks on several sections of the Pan-American Highway.

– Agence France-Presse