Interim Report - Report No 413, March 2026

Case No 3456 (Panama) - Complaint date: 18-NOV-23 - Active

Allegations: The complainant organizations allege the murders of four persons who were participating in protests, arbitrary detentions, acts of intimidation against trade union representatives, and the closure of SUNTRACS bank accounts in reprisal for its participation in protests against the decision to approve a mining concession contract

1. 262. The Committee examined this case at its March 2025 meeting, when it presented an interim report to the Governing Body (see 409th Report, approved by the Governing Body at its 353rd Session (March 2025), paras 260–285). 
2. 263. CONUSI and SUNTRACS submitted additional information in communications dated 14 February and 16 May 2025. In addition, communications were received from the BWI on 23 May and 15 September 2025.
3. 264. The Government sent its observations in communications dated 6 and 26 May 2025, 14 and 30 July 2025, 22 December 2025, and 12 and 14 January 2026
4. 265. Panama has ratified the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), and the Right to Organise and Collective Bargaining Convention, 1949 (No. 98).

A. The complainants’ allegations

1. 266. At its March 2025 meeting, the Committee made the following recommendations [see 409th Report, para. 285]:
   • (a) The Committee requests the Government to: (i) provide information on the final outcome of the investigations and judicial proceedings relating to the deaths of four persons during the protests in November 2024; (ii) ensure that an investigation is conducted into the fire on SUNTRACS’ premises in West Panama in order to identify the perpetrators and to provide information on its outcome; and (iii) ensure that SUNTRACS’ leaders enjoy the necessary protection measures if they are exposed to situations of risk;
   • (b) The Committee requests the Government to: (i) indicate whether Decision No. 29 of the Public Prosecutor’s Office of 30 August 2024 implies the closure of any criminal investigations against SUNTRACS for the alleged crime of money laundering; (ii) report on the outcome of the motu proprio criminal investigation against Jaime Caballero for the alleged offence against the administration of justice; and (iii) indicate whether there is any other criminal investigation under way against the trade union representatives referred to above and, if so, to provide information on the current status of these investigations;
   • (c) The Committee requests the Government to, in the absence of a decision of a competent authority to the contrary and given the time that has elapsed since the trade union's bank accounts were closed and the impact this has on its ability to carry out its activities in defence of its members, adopt immediate measures in order to guarantee SUNTRACS full access to its funds and the functioning of its accounts in the financial system. The Committee also requests the Government, in consultation with the representative social partners and in order to fully guarantee the right of trade union organizations to organize their administration and activities, to ensure that any restrictions on the use of trade union funds or in the management of their bank accounts is based on an impartial and objective procedure, carried out by a body independent of the administrative authorities and, in all cases, subject to judicial oversight;
   • (d) The Committee requests the Government to send its observations on the allegations contained in the communication from the complainant organizations of 14 February 2025.

B. The complainants’ additional allegations and information

1. 267. In a communication dated 14 February 2025, the complainants allege that: (i) on 12 February, protests were carried out against Act No. 462 reforming the Basic Act on the Social Security Fund, hereinafter Act No. 462, which involved acts of violence against demonstrators, the detention of more than 500 SUNTRACS members without observance of the guarantees set forth in the Constitution, and the bringing of criminal proceedings against 71 of them on the grounds that they had committed serious offences; (ii) the accounts of SUNTRACS and of the cooperatives linked to the trade union with Caja de Ahorros remain closed; on 13 February 2025, SUNTRACS bank accounts in the National Bank of Panama were frozen indefinitely and the bank account of SUNTRACS’ services cooperative, the Cooperativa de Servicios Múltiples SUNTRAC R. L., was closed; and (iii) although SUNTRACS does not use state funds for trade union education, the Government has ordered an audit in this area and the suspension of the use of education insurance funds for all trade unions in the country.
2. 268. In a communication dated 16 May 2025, SUNTRACS further alleges that in the context of the indefinite nationwide strike in the construction sector which began in April 2025 in protest against the adoption of Act No. 462, there have been detentions of strikers and targeted arrests of various leaders of SUNTRACS, including the International Relations Secretary, Jaime Alberto Caballero, who has been charged with serious financial crimes and money laundering and remains in detention. According to the complainant organization, 562 persons were arrested and brought before community justice centres or other judicial bodies before being released the following day, having been charged with various offences and required to post bail, without any explanation as to the reasons for their detention. The complainant organizations further allege that in the case of Jaime Alberto Caballero, the charges against him are a breach of financial reserve whose true objective is to affect his trade union activity. The complainant organizations attach copies of the cases filed against a series of measures adopted by the Government: an action for amparo [protection of constitutional rights] against Ministerial Resolution No. DM-063-2025 approving the procedure for the collection and payment of union dues; a complaint to the Office of the Attorney General against authorities of the Ministry of Labour and Workforce Development (MITRADEL) for the adoption of the aforementioned Ministerial Resolution No. DM-063-2025; two habeas data actions to obtain documentation related to the remittance of union dues, which has been requested but not provided by MITRADEL’s Department of Social Organizations; and a complaint lodged with the National Assembly against the President of Panama for the commission of various crimes against SUNTRACS.
3. 269. In communications dated 23 May 2025, the BWI states that: (i) the detention of Jaime Alberto Caballero was confirmed on 16 May 2025 and he remains in prison along with highly dangerous prisoners, pending the conclusion of investigations, and charges have been brought against other members of the executive committee of SUNTRACS acting as banking signatories, including Abdiel Betancourt, Finance Secretary; José Palacios, Control Secretary; and Ariel Rodríguez, Undersecretary for Audit; (ii) apparently as part of the investigation into Jaime Alberto Caballero, on 20 May 2025 the Office of the Special Prosecutor for Organized Crime raided the headquarters of SUNTRACS in the province of Chiriquí, and on 21 May armed police stormed the headquarters in San Miguelito and Avenida Perú in the capital; (iii) on 21 May 2025, the Panamanian Autonomous Cooperative Institute (IPACOOP) requested the cancellation of the legal status of the Cooperativa de Servicios Múltiples SUNTRACS, R. L.; (iv) Saúl Méndez, General Secretary of SUNTRACS, has sought political asylum in the Embassy of the Plurinational State of Bolivia, in which context the Public Prosecutor’s Office issued a detention warrant against him, as well as against the Secretaries of Defence of SUNTRACS, Genaro López and Erasmo Cerrud; other arrest warrants have been issued against the executive committee of SUNTRACS in relation to a case that was opened two years ago and was thought to have since been closed.
4. 270. In a communication dated 15 September 2025, the BWI added that: (i) on 15 April 2025, Ministerial Resolution No. DM-063-2025, which authorizes the Minister of Labour to withhold union dues deducted at source so that they can be used for conciliation instead of by trade unions, was adopted, resulting in CONUSI bringing criminal proceedings against the MITRADEL authorities for illegally withholding funds for trade union training – a claim that was declared inadmissible; (ii) on 13 May 2025, the Ministry of Public Security and the Office of the Special Prosecutor for Organized Crime brought charges against the Organization Secretary of SUNTRACS, Yamir Córdoba, for financial crimes and money laundering; (iii) on 17 July 2025, MITRADEL lodged an application with the judicial authorities seeking the dissolution of SUNTRACS on the grounds that the union had strayed from its original purpose and had engaged in extortion, violence, fraud, abuse of power and misappropriation of resources; and (iv) on 3 August 2025, IPACOOP set up the liquidation board for SUNTRACS’ services cooperative and on 12 August 2025, the Minister of the Office of the President, Juan Carlos Orillac, announced the cancellation of the cooperative’s legal status.
5. 271. In the light of the events described above, the BWI alleges that: (i) the diversity and simultaneity of the measures adopted against SUNTRACS by various state entities – including MITRADEL, the Office of the Prosecutor-General, the state banks and the cooperatives supervisory body (IPACOOP) – do not appear to be isolated incidents but instead a highly coordinated effort to dismantle SUNTRACS rather than address specific alleged violations through independent legal processes; (ii) the involvement of multiple state actors targeting different facets of the union’s operations (its legal status, finances, leadership and membership), points to a centralized and coordinated strategy; (iii) the coherent public narrative of the executive branch, including President Mulino’s statement about reducing SUNTRACS to its “minimum expression”, reinforces the idea of a unified campaign; and (iv) the above raises serious concerns about the separation of powers and the rule of law, and about state institutions being used for political purposes to attack a specific organization perceived as a threat.

C. The Government’s reply

1. 272. In a communication dated 6 May 2025, the Government indicates that: (i) SUNTRACS has been organizing public demonstrations that exceed trade union objectives, involve calls for alteration of the constitutional order, and lead to blockades of public roads, confrontations with police forces resulting in injuries and material damage to private and public property, and acts of vandalism that have been documented by the local press, as was the case with the protests held on 12 February 2025 against the reforms to the Social Security Fund by means of Act No. 462 (2025), which left 16 police officers injured and property damaged; (ii) as a result of the protests on 12 February 2025, almost 500 persons were arrested and later released, 83 of whom were charged with various offences; (iii) the actions of SUNTRACS undermine the exercise of the right to strike, as they are carried out without meeting the formal requirements for the exercise of this right, are undertaken for purely political purposes, cause disturbances of public order and cause serious harm to the population; (iv) the closure of SUNTRACS bank accounts constituted an autonomous decision by the banks on the basis of the banking services contract signed by the parties, over which the Government has no influence, even when a bank is state-owned; (v) regarding a request from SUNTRACS to the Panamanian Construction Industry Board (CAPAC) to remit union dues in cash or by cheque to two members of the executive committee of the trade union, and in response to a request for an opinion addressed by CAPAC to MITRADEL, the aforementioned Ministry has recommended that this be done through the procedure for the transfer of union dues to the MITRADEL Conciliation Fund, for which purpose, by Ministerial Resolution No. DM-063-2025, a transfer procedure has been implemented; the aforementioned resolution in effect creates an alternative procedure for the transfer of union dues in cases where it has not been possible to do so through the mechanisms established in the collective agreement, and whereby these amounts are received and managed by the MITRADEL Conciliation Fund; (vi) the process of adoption of Act No. 462 reforming the Basic Act on the Social Security Fund, was participatory and proposals were received from the workers; (vii) the rules governing the Education Insurance Fund, which includes the use of funds for trade union training, authorize MITRADEL to revise reports justifying training expenses or to suspend the allocation of funds if their use is not justified in accordance with the legislation; moreover, as the Comptroller General of the Republic is authorized to conduct audits, the process of auditing the use of insurance funds (and not SUNTRACS) is fully supported by existing regulations; and (viii) in their additional allegations, the complainant organizations introduce new facts that divert attention from the issues originally raised in the complaint.
2. 273. In a communication dated 26 May 2025 and in response to the recommendations made by the Committee to the 353rd Session of the Governing Body (March 2025), the Government indicates that:
   • (a) According to information provided by the Office of the Attorney General dated 23 May 2025 (No. PGN-FSAL-128-2025):
     • (i) the person responsible for the murder of teachers Abdiel Díaz Chávez and Iván Rodrigó Mendoza has been convicted;
     • (ii) in the case of the culpable homicide of Tomas Milton Cerdeño García, the investigations have concluded following the termination of criminal proceedings as a result of the two defendants having paid reparations to the victim’s family;
     • (iii) in the case of the fire at SUNTRACS’ headquarters, the investigations have been closed due to the fact that those responsible have not been identified, despite investigations indicating that the fire at the headquarters was arson;
     • (iv) SUNTRACS leaders have not been granted protection measures because, according to the Code of Criminal Procedure, such measures are reserved for victims, witnesses and collaborators in criminal proceedings, and SUNTRACS leaders do not meet any of those conditions;
     • (v) the proceedings against SUNTRACS in relation to the alleged commission of the offence of money laundering has been provisionally shelved by a decision of 30 August 2024, leaving open the possibility of the case being reopened in the future in the event that new elements arise to justify doing so, although the proceedings have not thus far been reopened and, therefore, there are no proceedings pending;
     • (vi) with regard to the proceedings against Jaime Caballero, the investigation into the alleged commission of the crime against the administration of justice has been provisionally closed and the investigations into the crimes against collective security and against the economic order are at the formal investigation stage, and the accused remains in custody; and
     • (vii) following a complaint submitted by 107 former workers involved in a construction project (Red Frog Beach) in the province of Bocas del Toro, an investigation is under way into the alleged commission of crimes against economic assets in the form of aggravated fraud against the economic order and against collective security and other crimes by other members of the executive committee of SUNTRACS, including Erasmo Cerrud and Genaro López, for whom arrest warrants have been issued. It is not possible to provide additional details on the facts under investigation or on the procedural status of the cases, in compliance with the legal duty of confidentiality that governs the Public Prosecutor’s Office.
   • (b) with regard to the closure of the accounts of SUNTRACS and its services cooperative, the Government indicates that:
     • (i) the National Bank of Panama has reported in Note No. 2025-03000-01-40, dated 15 May 2025, that the closure of the SUNTRACS account was based solely on the banking services contract between the parties, and that it has refused the trade union’s request for reconsideration of the closure;
     • (ii) Caja de Ahorros has reported in Note No. 2025-123-01-138, dated 15 May 2025, that it cannot provide information on the closure of the accounts of SUNTRACS’ cooperative because, according to banking law, such information is restricted and can only be disclosed with the authorization of the account holder or at the request of a competent authority;
     • (iii) the Superintendency of Banks of Panama indicates that: the administrative complaint filed by SUNTRACS against Caja de Ahorros in which it requested the reopening of its bank account has been pending resolution in appeal proceedings since 27 March 2024; on 16 April 2025, SUNTRACS filed three new complaints relating to the closure of its accounts against the National Bank of Panama, Banco General S.A. and Multibank, respectively, which are ongoing; it is not aware of any resolution or of any administrative, judicial or regulatory provision that prevents SUNTRACS from opening a new account. However, the opening, closing or reopening of accounts is governed by the principle of contractual freedom, and any bank that opens or reopens an account must implement a rigorous due diligence analysis and verify the origin of the funds deposited.
3. 274. In communications dated 14 and 30 July 2025, the Government reaffirms its commitment to the principles enshrined in the ILO Conventions and reiterates the information provided in its communications of 6 and 25 May 2025, adding that all investigations into trade union representatives of SUNTRACS relate to alleged property crimes, are not linked to the exercise of trade union rights and are conducted by the Public Prosecutor’s Office in an independent manner and with respect for judicial guarantees. The Government adds that it remains open to dialogue with all social partners.
4. 275. In communications dated 22 December 2025 (Notes Nos 0834.DM.2025 and 0835.DM 2025) and 12 and 14 January 2026 (Note No. 0025-DM-2026), the Government once again confirms the information transmitted in its previous communications and reiterates its commitment to freedom of association and to ILO standards. The Government regrets the overly general nature and unsubstantiated political focus of the allegations, in particular in relation to the supposedly anti-union nature of the actions of the criminal justice system. Lastly, the Government adds the following elements: (i) Act No. 462 reforming the Social Security Fund was the subject of a tripartite dialogue held in two stages (September–October 2024 and November 2024–February 2025), involving representatives of the country’s trade union organizations, including the complainant organizations; (ii) MITRADEL does not interfere in the investigations conducted by the judicial authorities against various representatives of SUNTRACS, nor in the adoption of measures, such as preliminary detention, dictated by these authorities; (iii) in relation to the legal proceedings brought by the complainant organizations, an action for amparo brought against Ministerial Resolution No. DM-063-2025, which authorizes MITRADEL to withhold union dues deducted at source, was unanimously rejected by the Supreme Court of Justice; moreover, a complaint lodged with the National Assembly against the President of Panama has been shelved, while in other legal proceedings brought against MITRADEL authorities, MITRADEL has not yet been notified to provide information; (iv) pursuant to Act No. 17 of 1 May 1997, IPACOOP has the legal authority to administratively cancel cooperatives when irregularities exist, and such procedure provides that cooperatives may exercise their right of defence and lodge appeals against the decisions issued; (v) Saul Méndez has left the country that had granted him political asylum and his whereabouts are unknown. The criminal proceedings against him and the INTERPOL warrant for his arrest relate to his possible involvement in criminal offences and do not constitute political or trade union persecution; (vi) one of the cases under investigation for alleged crimes against economic assets pertains to a complaint submitted against SUNTRACS, its cooperative and some of its leaders by former workers involved in a construction project in the province of Bocas del Toro, to whom the trade union allegedly failed to transfer property holdings granted by the developer as compensation for labour, instead using them as collateral to obtain a loan from its own cooperative; (vii) in application of Resolution No. DM-063-2025, on 24 November 2025 SUNTRACS received notification that cheques pertaining to union dues had been paid and were available for withdrawal, which did not occur; (viii) control measures in relation to the use of education insurance funds allocated to trade union training have been implemented following findings of non-compliance with the rules governing the transparent use of such funds and their use for training purposes. This situation has led to the suspension of the allocation of funds to trade union organizations which have committed such breaches; (ix) the criminal proceedings against Yamir Córdoba have moved from the indictment stage to the intermediate stage, with the oral stage still pending; (x) the application for the dissolution of SUNTRACS is not intended to affect workers’ rights but rather to protect their interests and ensure that trade union organizations fulfil the function of legitimate representation; the application is based on provisions of domestic law and does not constitute interference in the functioning of trade union organizations; (xi) SUNTRACS’ cooperative brought an action for amparo against the order to conduct a comprehensive audit, which was declared inadmissible, and the cancellation of the cooperative’s legal status is solely due to violations of the laws that regulate its activity, including Act No. 17 of 1997 regulating the operation of cooperatives and Act No. 23 of 2015 on the prevention of money laundering offences. These violations include not having a risk assessment matrix for money laundering, not having properly substantiated financial profiles, misappropriation of funds, and other allegations that the cooperative was unable to refute when exercising its right of defence as part of the administrative dissolution process.

The Committee’s conclusions

1. 276. The Committee recalls that the present case concerns allegations of the murders of four persons participating in protests, arbitrary detentions, acts of intimidation against trade union representatives, and the closure of 18 bank accounts of SUNTRACS – the main trade union in the country’s construction sector – and its representatives by the Government and the state bank Caja de Ahorros, in reprisal for SUNTRACS’ participation in protests against the decision to approve a mining concession contract through the adoption of Act No. 406. Subsequent to the Committee’s initial examination of the case, the complainant organizations have provided additional information on the facts of the case and have submitted new allegations which, in turn, have been the subject of observations by the Government.
2. 277. The Committee notes that, in their additional submissions, the complainant organizations allege in particular that: (i) the protests held in February 2025 against Act No. 462 gave rise to acts of violence against the demonstrators and to the detention and criminal prosecution of numerous workers, including several SUNTRACS officials; (ii) in reprisal for the protest actions, several union leaders were charged with serious financial crimes and money laundering, resulting in SUNTRACS’ International Relations Secretary being remanded in custody as a precautionary measure and in the General Secretary seeking political asylum; (iii) in May 2025, two SUNTRACS premises were stormed by armed police; (iv) despite the Committee’s recommendations, SUNTRACS’ lack of access to its bank accounts has worsened significantly; (v) SUNTRACS’ lack of access to its financial resources is further exacerbated by a Ministerial resolution authorizing the Minister of Labour to withhold union dues deducted at source; (vi) although SUNTRACS does not use state funds for trade union education, the Government has ordered an audit of its funds in this area and has ordered the suspension of the use of education insurance funds for all trade unions in the country; (vii) on 17 July 2025, MITRADEL requested the judicial dissolution of SUNTRACS; (viii) in August 2025, IPACOOP ordered the cancellation of the legal status of SUNTRACS’ service cooperative. The Committee notes that, in the light of these elements, the complainant organizations allege that the diversity and simultaneity of the measures adopted against SUNTRACS by various state entities point to a centralized and highly coordinated effort to dismantle the trade union organization rather than to address specific alleged violations through independent legal processes, consistent with the President of the Republic’s statement on reducing SUNTRACS to its “minimum expression”.
3. 278. The Committee notes that, for its part, the Government, in addition to providing observations on the recommendations issued when the Committee first examined the case, states that: (i) the complainants’ allegations have a political focus, are overly general and are unsubstantiated, in particular in relation to the supposedly anti-union nature of the actions of the criminal justice system; (ii) SUNTRACS’s public demonstrations exceed trade union objectives and lead to blockades of public roads, acts of vandalism and confrontations with police forces; (iii) the investigations relating to the alleged property crimes of SUNTRACS leaders are not linked to the exercise of trade union rights and are conducted by the Public Prosecutor’s Office in an independent manner and with respect for judicial guarantees; (iv) the closure of SUNTRACS bank accounts arises from the contractual freedom that governs the sector; (v) both the administrative dissolution of SUNTRACS’ cooperative and the judicial request for the dissolution of the trade union are intended to protect workers from irregularities and from the trade union’s failure to fulfil its representative function; and (vi) the dismissals of banana plantation workers occurred following their participation in a strike that had been declared illegal and the closure of the company due to economic losses resulting from the prolonged interruption of activities.
4. Allegations of anti-union deaths and violence examined by the Committee during its initial examination of the case
5. 279. The Committee takes due note of the Government’s indications that in the case of the deaths of teachers Abdiel Díaz Chávez and Iván Rodrigó Mendoza during the protests of November 2023, the investigations have culminated in the identification of the perpetrator and the imposition of the appropriate criminal sentence. The Committee also notes that the Government states that in the case of the death of Tomás Milton Cerdeño García, the criminal proceedings were terminated because the perpetrators paid financial reparations to the victim’s family. The Committee notes that the complainants did not refer to this case explicitly in their allegations, and insofar as it understands that the death of Tomás Milton Cerdeña constituted culpable homicide in the context of a road traffic accident, the Committee will not pursue this aspect of the case.
6. 280. The Committee notes with concern, however, that with regard to the fire on SUNTRACS’ premises on 10 March 2024, – which, according to the authorities’ investigations, was arson – the proceedings have been provisionally closed because it has not been possible to determine the responsibility of the persons under investigation. In this regard, the Committee recalls that it is important that investigations yield concrete results in order to determine reliably the facts, the motives and the persons responsible, in order to apply the appropriate punishments and to prevent such incidents recurring in the future [see Compilation of decisions of the Committee on Freedom of Association, sixth edition, 2018, para. 96]. While taking due note of the information provided concerning the investigation that took place, the Committee expects that every effort will continue to be made to identify and punish both the instigators and the perpetrators of the fire on SUNTRACS’ premises. The Committee requests the Government to provide information on any new developments. Furthermore, with regard to its recommendation in this regard (recommendation (a)), the Committee notes that, according to the information provided by the Office of the Attorney General, no provision has been made to ensure that SUNTRACS leaders enjoy protection measures, as these are only granted to individuals who have the status of victim, witness or collaborator in the framework of criminal proceedings. In this regard, the Committee recalls that the rights of workers’ and employers’ organizations can only be exercised in a climate free from violence, pressure or threats of any kind against the leaders and members of these organizations, and it is for governments to ensure that this principle is respected [see Compilation, para. 84]. While taking due note of the legislation in place, the Committee reiterates the importance of the Government ensuring that trade union leaders are not exposed to risk and of reporting on the measures taken in this respect.
7. Allegations related to the protests of 12 February 2025
8. 281. The Committee takes note of the complainants’ allegations that the protests held on 12 February 2025 against the adoption of Act No. 462 gave rise to acts of violence against protesters, the arrest of more than 500 SUNTRACS members, and the bringing of serious criminal charges against some of the detainees. The Committee also notes that, for its part, the Government indicates that: (i) the demonstrations and strikes promoted by SUNTRACS are undertaken for political purposes rather than trade union objectives, cause disturbances of public order and cause serious harm to the population; and (ii) all demonstrators detained in the protests were released, including the 83 demonstrators who were charged with the commission of various offences. In this regard, the Committee recalls that workers should enjoy the right to peaceful demonstration to defend their occupational interests [see Compilation, para. 208]. The Committee also highlights that, on the one hand, the principles of freedom of association do not protect abuses consisting of criminal acts while exercising protest action [see Compilation, para. 224] and that workers’ organizations should respect legal provisions on public order and abstain from acts of violence in demonstrations [see Compilation, para. 221] and that, on the other, all allegations of violence against workers who are organizing or otherwise defending workers’ interests should be thoroughly investigated and full consideration should be given to any possible direct or indirect relation that the violent act may have with trade union activity [see Compilation, para. 101]. In the light of the foregoing, the Committee requests the Government to provide detailed information on the results of the investigations into the 83 demonstrators who were charged with the commission of various offences in connection with the demonstrations of 12 February 2025.
9. Criminal investigations against SUNTRACS and its leaders; detention of leaders
10. 282. The Committee notes that the Government indicates that the investigation against SUNTRACS relating to the alleged commission of the offence of money laundering, launched in January 2024, was provisionally closed by a resolution of 30 August 2024 and has not been reopened, although it may be reopened in future should new elements emerge to justify doing so. The Committee further notes, however, that the Government indicates that criminal investigations are ongoing against: (i) the General Secretary of SUNTRACS, Saul Méndez, who was granted political asylum in the Plurinational State of Bolivia and, according to information provided by the Government, has since left that country and is the subject of an international arrest warrant; (ii) the International Relations Secretary, Jaime Caballero, who remained in preventive detention at the time of the Government’s most recent communication; the Secretaries of Defence, Genaro López and Erasmo Cerrud, for whom arrest warrants have been issued; (iii) Abdiel Betancourt, Finance Secretary; José Palacios, Control Secretary; and Ariel Rodríguez, Undersecretary for Audit; all of whom acted as banking signatories for SUNTRACS; and (iv) the Organization Secretary of SUNTRACS, Yamir Córdoba, who has been charged with financial crimes and money laundering. The Committee further observes that: (i) in most of the cases mentioned above, the information provided by the Government contains no reference to the alleged acts, with the exception of a complaint submitted against SUNTRACS, its cooperative and some of its leaders by former workers involved in a construction project in the province of Bocas del Toro, in relation to the alleged commission of crimes against economic assets. The complainants allege that SUNTRACS failed to transfer property holdings granted by the developer to the workers as compensation for labour, instead using the holdings as collateral to obtain a loan from its own cooperative; and (ii) according to publicly available information, on 13 February 2026 the High Court of Appeal decided to modify the interim measure applicable to Jaime Caballero, converting his preventive detention into house arrest with electronic monitoring.
11. 283. In the light of the foregoing, the Committee recalls that while persons engaged in trade union activities or holding trade union office cannot claim immunity in respect of the ordinary criminal law, the arrest of, and criminal charges brought against, trade unionists may only be based on legal requirements that in themselves do not infringe the principles of freedom of association [see Compilation, para. 133]. The Committee emphasizes that in cases involving the arrest, detention or sentencing of a trade union official, it is incumbent upon the government to show that the measures it has taken have in no way been occasioned by the trade union activities of the individual concerned [see Compilation, para. 158]. In the light of the above, the Committee requests the Government to provide, without delay, detailed information on the reasons for and results of the various investigations under way and, where applicable, on the sentences handed down in the respective proceedings.
12. 284. The Committee also notes that the complainants allege that in the context of the investigations against Jaime Alberto Caballero, on 20 May 2025 the Office of the Special Prosecutor for Organized Crime raided SUNTRACS’ headquarters ACS in the province of Chiriquí, and on 21 May of that year armed police stormed the headquarters in San Miguelito and Avenida Perú in the capital. The Committee observes that the Government states that arrests and searches of private homes were conducted as part of investigations into the commission of financial crimes but does not refer specifically to the allegations of raids on SUNTRACS’ premises in the province of Chiriquí and at the headquarters in San Miguelito and Avenida Perú in the capital. In this regard, the Committee recalls that searches of trade union premises should only be made following the issue of a warrant by the ordinary judicial authority where that authority is satisfied that there are reasonable grounds for supposing that evidence exists on the premises material to a prosecution for a penal offence and on condition that the search be restricted to the purpose in respect of which the warrant was issued [see Compilation, para. 283].
13. SUNTRACS’ access to bank accounts and to its financial resources
14. 285. The Committee notes that the complainants state that, despite the recommendations made by the Committee in its previous examination of the case, the National Bank of Panama and other banks have ordered the closure of the bank accounts of SUNTRACS and its services cooperative. The Committee also notes that, for its part, the Government reiterates that the closure of SUNTRACS accounts constitutes an independent decision by the banks over which it has no influence; that complaints are currently being submitted to the Superintendency of Banks of Panama regarding the aforementioned closures; and that the state-owned Caja de Ahorros refuses to open new accounts. The Committee also notes that, according to information provided by the Government, the investigation against SUNTRACS for the alleged commission of crimes against the economic order in the form of money laundering has been provisionally closed since August 2024 and the Superintendency of Banks of Panama is not aware of any resolution or of any administrative, judicial or regulatory provision that prevents SUNTRACS from opening a new account. In the light of the foregoing, the Committee notes that: (i) the accounts of SUNTRACS and its services cooperative with various banks remain closed, without any intervention of an independent supervisory body of the banking system or a judicial body and despite the fact that the investigation against SUNTRACS for the alleged crime against the economic order in the form of money laundering has been provisionally shelved since August 2024; (ii) beyond the general principle of contractual freedom, there continues to be no mention of any specific legal or regulatory framework on which the decision to close the accounts was based; (iii) no information has been provided that links the banks’ closure of, or refusal to open, the accounts with the ongoing investigations mentioned above; and (iv) complaints filed by SUNTRACS are currently before the Superintendency of Banks of Panama regarding the aforementioned. In this regard, the Committee reaffirms that provisions which restrict the freedom of trade unions to administer and utilize their funds as they wish for normal and lawful trade union purposes are incompatible with principles of freedom of association [see Compilation, para. 683] and that the general principle that there should be judicial control of the internal management of an occupational organization in order to ensure an impartial and objective procedure is particularly important in regard to the administration of trade union property and finances [see Compilation, para. 713].
15. 286. In the light of the foregoing, recalling the decision of the Office of the Ombudsman of 30 September 2024 stating that the closure of SUNTRACS accounts was a clear violation of the trade union rights of that organization and recommending the reinstatement of all the trade union’s closed accounts, the Committee expects that the complaints filed before the Superintendency of Banks of Panama will be resolved promptly and that in the absence of a decision of a competent authority to the contrary, immediate measures will be taken in order to guarantee SUNTRACS full access to its funds and the functioning of its accounts in the financial system. The Committee requests the Government to provide information in this regard. The Committee further recalls its previous recommendation concerning the use of trade union funds and the management of their bank accounts.
16. 287. The Committee takes note of the complainants’ allegation that the adoption on 21 April 2025 of Ministerial Resolution No. DM-063-2025, which implements a procedure for the collection of union dues through MITRADEL’s Conciliation Fund, would authorize the Government to withhold union dues deducted at source so that they can be used for other purposes. The Committee also notes that, according to the Government, the procedure in question facilitates the collection and remittance of union dues, with the dues collected by companies made available to SUNTRACS for withdrawal. The Committee also notes that an action for amparo against the aforementioned resolution was declared inadmissible by the Supreme Court of Justice. The Committee notes that the resolution in question authorizes employers to transfer to the Conciliation Fund of MITRADEL’s General Labour Directorate the portion of union dues that could not be transferred to the relevant social organization in the manner agreed upon in the collective labour agreement. The Committee recalls that the deduction of trade union dues by employers and their transfer to trade unions is a matter which should be dealt with through collective bargaining between employers and all trade unions without legislative obstruction [see Compilation, para. 701].
17. 288. The Committee also notes the complainants’ allegation that despite the fact that SUNTRACS does not use state funds for trade union education, the Government has ordered an audit of its funds in this area and the suspension of the use of education insurance funds for all trade unions in the country. The Committee notes that, for its part, the Government indicates that the rules governing the Education Insurance Fund and the use of funds for trade union training authorize MITRADEL and the Comptroller General of the Republic to undertake supervisory actions, conduct audits (which in this case were not concerned with SUNTRACS) and even suspend the transfer of funds if their use is not justified in accordance with the legislation. The Committee recalls its finding that various systems of subsidizing workers’ organizations have different consequences according to the form which they assume, the spirit in which they are conceived and applied and the extent to which the subsidies are granted as a matter of right, by virtue of statutory provisions, or at the discretion of a public authority. The repercussions which financial aid may have on the autonomy of trade union organizations will depend essentially on circumstances; they cannot be assessed by applying general principles: they are questions of fact which must be examined in the light of the circumstances of each case [Compilation, para. 686]. At the same time, the Committee recalls that the right of workers to establish organizations of their own choosing and the right of such organizations to draw up their own constitutions and internal rules and to organize their administration and activities presuppose financial independence. Such independence implies that workers’ organizations should not be financed in such a way as to allow the public authorities to enjoy discretionary powers over them [Compilation, para. 680]. On the basis of the above, the Committee requests the Government to ensure that measures to control or suspend the use of the Education Insurance Fund for trade union training, and audits of the use of these funds by MITRADEL or the Office of the Attorney General, do not restrict the right of workers’ organizations to freely conduct legitimate trade union activities and to organize their administration.
18. Administrative dissolution of SUNTRACS’ services cooperative and application for judicial dissolution of SUNTRACS
19. 289. The Committee notes that, according to the information provided by the complainants, in August 2025 IPACOOP ordered the cancellation of the legal status of the Cooperativa de Servicios Múltiples SUNTRACS R.L. and that, according to the Government, IPACOOP has the legal authority to effect administrative cancellations of cooperatives where serious irregularities are found – which, according to the information provided, was verified as being the case for the cooperative in question by means of an audit that identified breaches of Act No. 27 on the prevention of money laundering. The Committee also notes that an action for amparo brought against the acts providing for the cancellation was declared inadmissible by decision of the Plenary of the Supreme Court of Justice. Highlighting the importance of trade union cooperatives both for the development of trade union activities and for the benefits they provide to their members, and noting the highly conflictual relations between the Government and SUNTRACS in the context of which the cooperative was dissolved, the Committee requests the Government to: (i) provide further details on the motives for the administrative dissolution of the Cooperativa de Servicios Múltiples SUNTRACS R.L.; and (ii) report on whether the decision to dissolve the cooperative is being challenged in administrative or judicial proceedings and, if so, transmit information on the rulings handed down in any such proceedings.
20. 290. The Committee notes that, on 17 July 2025, MITRADEL submitted a complaint to the judicial authorities requesting the dissolution of SUNTRACS on the grounds that the trade union had strayed from its original purpose and had engaged in extortion, violence, fraud, abuse of power and misappropriation of resources. The Committee observes that the complainants emphasize the importance of SUNTRACS as a spokesperson for workers at the sectoral and national levels and claim that the various elements of the present case indicate the existence of a highly coordinated effort by the Government to dismantle SUNTRACS. The Committee recalls that the dissolution of trade union organizations is a measure which should only occur in extremely serious cases; such dissolutions should only happen following a judicial decision so that the rights of defence are fully guaranteed [Compilation, para. 1002]. The Committee also recalls the principle that if it was found that certain members of the trade union had committed excesses going beyond the limits of normal trade union activity, they could have been prosecuted under specific legal provisions and in accordance with ordinary judicial procedure, without involving the suspension and subsequent dissolution of an entire trade union movement [see Compilation, para. 996]. In the light of the foregoing, the Committee requests the Government to keep it informed of the outcome of the proceedings requesting the dissolution of SUNTRACSand trusts that the findings of the present case will be duly taken into consideration. .
21. 291. In the light of all the elements examined above, the Committee cannot fail to note with concern that, since November 2023, significant and increasing restrictions have been placed on SUNTRACS’ capacity for action, despite the fact that SUNTRACS has not been the subject of any conviction – notwithstanding the various investigations and legal proceedings under way against several of its leaders. Moreover, the major constraints to which it is subject, notably the lack of access to bank accounts, are not based on judicial decisions or legal provisions.
22. 292. In the light of the foregoing, the Committee urges the Government, while the various legal proceedings remain pending, to adopt all necessary measures to ensure that SUNTRACS, the main national construction union and signatory to the sectoral collective agreement since 1974, can exercise all its normal activities to further and defend the interests of its members. The Committee requests the Government to keep it informed in this regard.

The Committee’s recommendations

1. 293. In view of the foregoing interim conclusions, the Committee invites the Governing Body to approve the following recommendations:
   • (a) While duly noting the information provided concerning the investigation that took place, the Committee expects that every effort will continue to be made to identify and punish both the instigators and the perpetrators of the fire on SUNTRACS’ premises. The Committee requests the Government to provide information on any new developments.
   • (b) taking due note of the legislation in place, the Committee reiterates the importance of the government guaranteeing that trade union leaders are not exposed to risk for performing legitimate trade union activities;
   • (c) the Committee requests the Government to provide detailed information on the results of the investigations relating to the 83 demonstrators charged with various offences in connection with the demonstrations against Act No. 462, held on 12 February 2025;
   • (d) the Committee requests the Government to provide, as a matter of urgency, detailed information on the reasons and results of the investigations under way against the leaders of SUNTRACS: Saul Méndez, General Secretary; Jaime Caballero, International Relations Secretary; Genaro López and Erasmo Cerrud, Secretaries of Defence; Abdiel Betancourt, Secretary of Finance; José Palacios, Control Secretary; Ariel Rodríguez, Undersecretary for Audit; and Yamir Córdoba, Organization Secretary, who has been charged with various offences and, where applicable, to transmit information on the sentences handed down in the respective proceedings;
   • (e) the Committee requests the Government to provide detailed information on the allegations made by the trade union organizations concerning the raid on SUNTRACS’ premises in the province of Chiriquí and at its headquarters in San Miguelito and Avenida Perú in the capital;
   • (f) the Committee expects that the complaints filed before the Superintendency of banks of Panama will be resolved promptly and that in the absence of a decision by a competent authority to the contrary, immediate measures will be taken in order to guarantee SUNTRACS’ full access to its funds and the functioning of its accounts in the financial system. The Committee requests the Government to provide information in this regard. The Committee further recalls its previous recommendation on the use of trade union funds and on the management of their bank accounts;
   • (g) the Committee requests the Government to ensure that measures to control or suspend the use of funds from the Education Insurance Fund for trade union training, and audits of the use of these funds by MITRADEL or the Office of the Attorney General, do not restrict the right of workers’ organizations to freely conduct legitimate trade union activities and to organize their administration;
   • (h) the Committee requests the Government to: (i) provide further details on the motives for the administrative dissolution of the Cooperativa de Servicios Múltiples SUNTRACS R.L.; and (ii) report on whether the decision to dissolve the cooperative is being challenged in administrative or judicial proceedings and, if so, report on the rulings handed down in any such proceedings;
   • (i) recalling that the dissolution of trade union organizations is a measure which should only occur in extremely serious cases, the Committee requests the Government to keep it informed in respect of the outcomes of the proceedings in which the dissolution of SUNTRACS is requested and trusts that the findings of the present case will be duly taken into account; and
   • (j) the Committee urges the Government, while the various legal proceedings remain pending, to adopt all necessary measures to ensure that SUNTRACS, the main national construction union and signatory to the sectoral collective agreement since 1974, can exercise all its normal activities to further and defend the interests of its members. The Committee requests the Government to keep it informed in this regard.