Labour relations and the transfer of the Panama Canal[1]

The international maritime community is concerned about Panama's preparedness to undertake the responsibility of what many consider to be the world's greatest maritime asset, the Panama Canal. In accordance with treaty provisions, the longer within the dominion of the U.S. government and its attendant regulatory framework and policies. To a great extent, Panama's efforts to prepare for the transfer thus far have been driven by its objective of a seamless transfer, whereby the status quo (meaning the Canal's existing institutional and organizational framework and attendant policies and procedures) would be preserved as much as possible. This would assure the maritime community that it can expect the same service and cost standards traditionally enjoyed under the Panama Canal Commission's stewardship. Still of great concern, however, is the continued reliability and productivity of the Canal's labour force; the Canal's reliability and efficient performance in the past is often attributed to its history of harmonious labour management relations. This article addresses some of the critical labour relations issues that will need to be considered even if Panama's status quo objective for the transfer is achieved.