Panama - General strike to defend social security (New snapshots of rioters)

Marxist.com ^ | 9/23/03 | Jorge Martín

[Libloather]

Panama
General strike to defend social security
By Jorge Martín

On Tuesday September 23 a 24-hour warning general strike called by the National Front brought Panama to a standstill. It was called in protest against attacks on welfare. The National Front is an umbrella organisation that brings together the main trade unions and social organisations in the country, including the National Independent United Trade Union Confederation (CoNUSI), the National Council of Organised Workers (CoNATO), and the unions of building workers (SUNTRACS), social security workers, teachers and others. This latest warning general strike was the highest point in the mass movement of strikes and demonstrations that have shaken Panama since the removal of the Social Security Fund (CSS) director Juan Jovane, on Wednesday, September 11.

As in many other countries around the world, the social security system in Panama is facing a serious crisis. Following the adjustment policies dictated by international financial institutions like the IMF and the World Bank, the government of Panama is preparing its privatisation as a way of "solving" the problem of the deficit of the "Invalidity, Old Age and Death Fund".

However, the privatisation of social security would only be a "solution" from the point of view of big business, which is to a large extent responsible for the deficit in the first place, because of the widespread fraud in the payment of social security contributions on the part of the employers.

From the point of view of the workers privatisation would be a disaster. To run the social security system according to "market" criteria would mean all sorts of cuts in pensions, increasing the retirement age and attacks on the acquired rights of the working people.

The removal of CSS director Juan Jovane, notwithstanding government accusations of corruption and failure to manage the system, was due to his opposition to privatisation plans and his refusal to propose a "balanced" budget (that is a budget of cuts). Instead of this he presented a budget, which amongst other things, complied with the agreements reached with CSS workers after their strike earlier this year. The CSS Board of Directors, under pressure from the employers and the government refused to accept Jovane´s budget and so the government removed him from his position.

The workers of Panama are justifiably angry and have replied with mobilisations and strikes which the government has responded to with the use of anti-riot police and the arrest of trade union leaders. Amongst the first to come out in protest were the CSS workers who declared a 48-hour strike on the same day Jovane was sacked.

The following day the construction workers joined the protests and there were serious clashes with anti-riot police that had occupied the CSS offices. "Not even under the dictatorship had we seen units of the National Police in the offices of the CSS" shouted workers and admin staff, who warned that they were ready to defend the autonomy of the health institution even "with blood on the streets" if need be.

During the clashes more than 50 workers were arrested, amongst them the leader of the building workers, Saúl Méndez. The demonstrators demanded the calling of a general strike from Monday, September 15. Two trade union representatives on the CSS Board who voted against Jovane´s budget, were declared persona non grata by the workers. One of them, the teachers’ representative, Roberto Valencia, has already seen proceedings to expel him from the union initiated by his members.

On Friday 12, there was a mass demonstration with more than 50,000 people taking part. The trade union leaders gave the government a three-day ultimatum to reinstate the CSS director, or they would call a general strike. On Sunday 14, a general assembly of the CoNATU and CoNUSI, attended by large number of rank and file workers, decided to ratify the call for a general strike on September 23.

The week beginning September 15 started with the calling of an all out strike by 9,500 CSS workers and the calling of a 48-hour nationwide strike on the part of the teachers. Secondary and university students also joined the protests setting up pickets and roadblocks and demonstrations. Once again the government responded with repressive measures, threatening to arrest all those who participated in the roadblocks and to sack any CSS worker involved. They also accused Jované of "destabilising the country". On Thursday 18, once again tens of thousands of workers demonstrated in the pouring rain. The march was led by Saúl Méndez, the building workers’ leader who had just been released from prison. Under the pressure of this massive movement the government publicly declared that they had no plans to go ahead with the privatisation of the CSS.

That is how we got to last Tuesday’s general strike. The strike was massive. It paralysed 75% of building works, 95% of the education system and 25% of the private sector. There were heavy clashes in the university between the students and anti-riot police when the latter tried to prevent the students from marching to join the workers’ march.

So far the government does not seem prepared to make any concessions and the trade unions have already announced a new general assembly on Saturday to decide on new measures of struggle. The mood is one of struggle. For instance, the teachers in Veragua and Colón decided not to resume work after the 24 hour general strike and strongly criticised the national teachers leaders for having stopped the strike without the government having made any concessions and without consulting the ranks.

This is a decisive struggle for the workers and the people of Panama. It is part of the general fightback throughout all of Latin America against the plans to privatise public services, and in general against the capitalist policies of these countries’ governments. Only the organised and massive struggle of the workers and the people can stop the plan to privatise the social security system, as was proven by the example of the struggle in El Salvador, where months of mobilisations and strikes defeated similar plans of the national government earlier in the year.

At the same time we must understand that these adjustment and privatisation plans are not simply the result of evil governments or the pressures of the IMF. Rather, they reflect a capitalist system in a deep crisis, whose only solution is to get the workers to pay for it. Therefore the building of a revolutionary organisation based on the ideas of Marxism able to lead the struggle for the socialist transformation of society becomes an urgent task. Only the overthrow of the capitalist system can guarantee the defence of the acquired rights of the working class.

September 26, 2003.

[Libloather]

In this photo released by the Panama Presidency, Panamanian President Martin Torrijos speaks to the nation at the Presidential Palace in Panama City, Panama. Wednesday, May 18, 2005. Torrijos announced his reforms to deal with the country's current social security crisis, which is on the verge of collapsing. (AP Photo/Panama Presidency)

People enter the Social Security Hospital in Panama City, Panama, Tuesday, May 12, 2005. After a period of uncertainty, President Martin Torrijos will announce on Wednesday reforms to deal with the country's current social security crisis, which is on the verge of collapsing. (AP Photo/Arnulfo Franco)

Students create barricades using trash cans and dumpsters in the streets outside the university in the capital Panama City May 19, 2005. The protests were sparked by a proposed change in the country's social security system. No arrests were made and the protests ended quietly. Reuters/Alberto Lowe

A student carries cement bricks to throw at riot police during protests against a proposed change in the country's social security system in Panama City May 19, 2005. No arrests were made and the protests ended quietly. Reuters/Alberto Lowe

Students set fire to tyres during protests against a proposed change in the country's social security system in Panama City May 19, 2005. No arrests were made and the protests ended quietly. Reuters/Alberto Lowe

Construction workers create barricades outside one of Panama's main avenues in the capital Panama City May 20, 2005. The protests were sparked by a proposed change in the country's social security system. No arrests were made and the protests ended quietly. Reuters/Alberto Lowe

Construction workers on protest close off one of Panama's main avenues in the capital Panama City May 20, 2005. The protests were sparked by a proposed change in the country's social security system. No arrests were made and the protests ended quietly. Reuters/Alberto Lowe

A group of students set up a fence in front of the campus of the Panama University in Panama City, Panama, Thursday, May 19, 2005. Students are protesting against Panamanian President Martin Torrijos's proposals to reform Panama's troubled pension system. (AP Photo/Arnulfo Franco)

A student sets up a fence in front of Panama's National University in Panama City, Panama. Thursday, May 19, 2005. Students are protesting against Panamanian President Martin Torrijos's proposals to reform Panama's troubled pension system. (AP Photo/Arnulfo Franco)

[Libloather]

However, the privatisation of social security would only be a "solution" from the point of view of big business..."

From the point of view of the workers privatisation would be a disaster.

Check out the website these talking points come from...

[BenLurkin]

Students?

[Gatún(CraigIsaMangoTreeLawyer)]

1. The union leaders are a bunch of commies always trying to stir up trouble for their own agendas.

2. According to the author, the number of people who attend these demonstrations sounds a tad exaggerated to say the least. It makes it sound as if the entire city is on fire. Not so. These little funfests, and that is what they are, are carried out in a couple of predictable places such as in front of the Social Security Hospital and the University of Panama. They are right across the street from one another. This guarantees the participation of bunch of radical students (and a lot of them aren’t really students) into the fun. (The majority of the students just go home.) It is just a matter of avoiding these areas. The only problem is that it causes traffic jams.

These same folks are going to try and stir up trouble this coming week.

2. True, the government of Panama is crooked, has been, always will be. Everyone in politics has an agenda for himself/herself and that is to get wealthy. What is good for the country and its people is secondary. (Kind of sounds like our own government doesn’t it?)

3. Consider the source.

[Libloather]

1. The union leaders are a bunch of commies always trying to stir up trouble for their own agendas.

I did notice the hammer and sickle flag. I tried a Yahoo search for 'social security' and up pops pictures of burning tires! Other searches for just ONE story on Panama pensions came up blank. I resorted to a Google search and could only find something from the Marxists written in 2003.

I can't figure out if the problem is so bad that no one wants to write about it or there is no problem at all.

[Jack Black]

Hmm. Bring back the Death Squads.

[traviskicks]

2. True, the government of Panama is crooked, has been, always will be. Everyone in politics has an agenda for himself/herself and that is to get wealthy. What is good for the country and its people is secondary. (Kind of sounds like our own government doesn’t it?)
---

Yes, that's why the power needs to be returned to the individual. It limits corruption and therefore enhances morality. Panama should abolish SS and so we should we. (with appropriate phaseouts)

[Gatún(CraigIsaMangoTreeLawyer)]

"I can't figure out if the problem is so bad that no one wants to write about it or there is no problem at all."

Fiscally it is bad, and the good people who are asked to sacrifice their salaries and wages through raised taxes to support the social security system makes any good citizen angry. Everyone is complaining. Why should these folks be asked to reimburse (lack of a better word) a system which has been pilfered throughout the years by political crooks? So it can continue to be pilfered? These are the folks that should be out in the street but aren’t. It’s the communists who are out there trying to get support for their own agendas, whatever their agendas are. The ordinary person on the street recognizes this, and they don’t want to be associated with these rabble-rousers.

THUS FAR, it has not been a big problem because of lack of interest as stated above. The communists want to make outsiders believe that the streets are running with blood (an exaggeration on my part). On the other hand, I never saw a madder bunch of Panamanians from all walks of life out in the street during Noriega’s reign. Even I was out there getting shot at.

Notice that those photos keep mentioning that no one was hurt. This is more like entertainment for the rest of us sitting at home watching it on TV.

You’ve got to see it person to fully understand it.

[Gatún(CraigIsaMangoTreeLawyer)]

"Panama should abolish SS and so we should we..."

Yes, it should be privatized. The problem is that the misinformed are afraid of the word. I don’t know why. It puzzles me. The whole system has to be killed and revamped in another direction.

And yes, in the U.S. the power needs to be return to the individual.

[JoeV1]

Bottom line here is that the freeloaders want their cash and the nations fiscal future be damned. It's no different in this country with the loony left as we see them with their faces all screwed up and beet red and with their fists clenched, scream out "I want it, it's mine and you can't touch it, mine, mine, mine, WAHHHH!!!"

[Gatún(CraigIsaMangoTreeLawyer)]

I need to step out for about 1 1/2 hours. I'll be glad to address any questions/comments when I return.

[livius]

I agree that SS should be completely transformed here, because it's simply unworkable.

However, what "Seguridad Social" means in most Spanish-speaking countries is a total system - not only retirement, but a host of other welfare benefits. This is the same problem European countries (including Spain) are having now, since they don't have enough workers to fund their insanely generous benefits. Panama may have enough workers, but the problem is that the benefits keep growing and the taxes keep rising, so that the productive are forced to be non-productive in order to survive. And I bet, because their system covers even more "benefits," it's even harder for the productive there.

BTW, I say this as a US self-employed person who has had such a huge "self employment tax"(Social Security) liability I have now decided to simply turn down work and reduce my income by about 50% in order to protect myself.

[Gatún(CraigIsaMangoTreeLawyer)]

I'm back.

“However, what "Seguridad Social" means in most Spanish-speaking countries is a total system - not only retirement, but a host of other welfare benefits.”

Yes, that’s true. When Panama started its welfare system (in the ‘50s), it went to Mexico to see what they were doing. I don’t know how much was copied from them. Buy anyway, the welfare “benefits” are minimal compared to Europe. There are hospitals under the system; retirement which is very, very low; and they get paid a “thirteenth” month which is paid in three installments. The employer pays the employee two installments and the third goes to the government. Oh yes, the employer also pays ½ of the employee’s social security with the employee paying the other half. After working a year, all employees get a month of vacation. It can be all at once or in increments.

Oh, by the way, I just got a hold of the Sunday newspaper. The various blue collar workers’ unions are going to try and shut down Panama tomorrow for two days in the event you read about this. But it is just the unions and their useful idiots. Everybody else plans to go to work. The President said a few days ago the police are well trained, ready, and will crack skulls (not exactly those last words).

They are going to start “early.” I don’t know what early means. I think of “early” being right after the sun comes up or before. “Early” might mean 11:00 a.m. to others.

[livius]

Early” might mean 11:00 a.m. to others.

Or 11:00 p.m., for your average "slacker" lefty, a category that seems to be trans-national...

Glad to hear that the government does not intend to be intimidated by these nitwits.

[Gatún(CraigIsaMangoTreeLawyer)]

I have a dental appointment tomorrow across town at 9:30. I purposefully plan to drive past the university and social security hospital to see what is going on and then return by another route. If there is anything unusual going on outside the usual suspects, I will report back. I love a good ruckus.

[pepsionice]

I lived in Panama for three years...and always noted every demonstration started around 1pm and ended by 4pm usually (to give everyone time to get to the buses). And I also noted that there were twice the number of demonstrations in the dry season as the rainy season.

As for the corruption factor...I am forever reminded of getting my German wife her Panamian license. There was supposed to be a test...and the guy looked at me and said this could be handled very easily (a hint)...and I smiled and asked how easily, and he responded that $40 would make it easy. I quickly paid...he typed up the license, and I handed it to her (she went nutty, asking that this wasn't ethical, and I just smiled).

We had a guy in our organization...who married a Panamanian and saw this beautful hillside overlooking the ocean. He went through all of the locals and couldn't find out who owned the 10 acres. He went to the local registration department, and they couldn't tell him. He went through the tax office and they couldn't tell him. Finally, he went to a Panamanian police captain and the cop wanted to know why he was interested. The next day, the police captain shows up with some government official and they work out a property sale (claiming that the government actually owned the property). The police captain got $300 for his effort, and the government guy probably made the same amount.

The sad thing is that I'd return to Panama in a heartbeat...toss in the corruption, the rainy season, the crime, critters, and the heat. Its the best place on earth for a fish fry. And to sit on a boat off the shore of Panama City at nightfall...and see the lights of the city...makes it worth a million dollars. Now, if I could just arrange a marriage with one of Tony Noreiga's daughters...I'd be in hog heaven (as they say in the south).

[WoofDog123]

"Panama should abolish SS and so we should we."

doing this in a country where the bulk of the population lives a subsidience existence is pretty much a death sentence to that portion. There would actually be full-blown major civil unrest in such an absurd event. It would certainly be the death knell of the government that proposed it.

Unlike the US, a decent percentage of central americans do face issues in the daily-to-weekly food-on-the-table department, much less 'planning' for retirement.

How do you return power to the individual in this circumstance? The individual, at present, has zero and earning so little also pays no taxes aside from SS and what is a sales tax.

[WoofDog123]

"This is more like entertainment for the rest of us sitting at home watching it on TV. "

as long as you don't actually have to get from point A to point B. I nearly got caught in one of these things (masked people closing otherwise empty streets) a couple of weeks ago.

[traviskicks]

You left out part of my reply: (with appropriate phaseouts)

SS makes people feel like the government is going to handle their retirement for them, so they don't save as much. If SS is phased out, people would take responsibility for their own retirement. The wealth of any given country would increase as private individuals woudl invest their money more wisely then the government. In the US I believe average invested income yields 3-4% vs 1% in gov accounts. People would also be more likely to donate to charities that helped those that were unwilling, or unable to create a big nest egg for themselves.

Now, turning to panama, you say the people are poor and worried about food and such and earn little. This is even more reason to follow these reforms. Because, who does this SS money come from? It comes from the wealth producers and job producers in panama. By taking money away from those who can grow the economy you're hurting the very poorest people the most as they will be less likely to find a job and to would benefit most from a growing economy free of government interference.

Also, by socializing the economy and increasing handouts you're giving people incentives not to work. A population that is poor and wants to work will attract foreign investment.

More on this here:

http://www.neoperspectives.com/sweatshopsandwelfare.htm

As far as the population rising up against it and civil strife etc... well.... educate the people is the best way to have a stable and prosperous society. This new wave of leftism, liberalism sweeping across latin america is enslaving, not liberating, the poorest people. Freedom does not come easy and it is always a constant fight as you deal with emotional arguments that people will die, starve etc.. if they're given more freedom.