The European Union and its member states expressed serious concern over Panama's compliance with the Freedom of Association and Protection of the Right to Organise Convention (No. 87), during the International Labour Conference in Geneva on 8 June 2026. In a statement delivered on behalf of the EU and its member states, the EU noted allegations of persecution and criminalisation of trade unionism in Panama, including reports that protests between April and July 2025 were met with excessive force and arbitrary arrests. The EU urged Panama to bring its law and practice into full conformity with the convention.

The statement was delivered at the Committee on the Application of Standards, a regular ILO body that examines compliance with ratified conventions. The EU recalled that Panama has ratified Convention No. 87 and highlighted the latest observations of the ILO Committee of Experts, which identified serious violations concerning the rights of the trade union SUNTRACS and its leaders. The EU noted that these matters are also being examined by the ILO Committee on Freedom of Association.

The EU regretted the lack of progress in reactivating tripartite committees established under a 2012 tripartite agreement and the absence of progress in establishing a Higher Labour Council. It called on the government to strengthen social dialogue and overcome obstacles to adopting relevant legislation.

Several legislative provisions remain problematic, according to the EU, including restrictions on establishing workers' organisations in public institutions, excessive membership requirements, and denial of union rights to certain public servants. The EU also flagged concerns about nationality requirements for trade union executive boards and restrictions on the right to strike, including prohibitions on federations calling strikes, automatic police intervention, and compulsory arbitration in transport disputes.

The EU urged Panama to take concrete measures in consultation with social partners and to cooperate fully with ILO supervisory bodies. The statement was also aligned with candidate countries North Macedonia, Montenegro, Albania, Ukraine, and Moldova, as well as Norway.

The statement puts diplomatic pressure on Panama's government to reform labour laws, potentially affecting trade unions (positive, as it supports their rights), employers (mixed, as reforms may increase operational constraints), and workers in restricted sectors (positive, as it could expand unionisation and strike rights). The EU's position reinforces the ILO supervisory system's authority, but the impact is limited as the statement carries no binding enforcement mechanism.

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