Panama Canal workers strike, halting expansion project

Thursday, 19 January 2012 01:22:02 (GMT+2)

International news agencies reported Wednesday that construction on the Panama Canal has been halted after the workers on both the Atlantic and Pacific sides of the canal walked off of the worksite. The workers are demanding the payment of back wages and better working conditions.

The Panama Canal is in the midst of a US$5.25 billion project to expand the canal by adding a third set of locks which will provide passage of the world's largest ships through the canal. It is estimated that the canal processes up to 5 percent of the world's trade.

The workers for the canal are demanding that minimum wage be raised from US$2.90 to US$4.90 for hourly employees and from US$3.52 to US$7.10 for skilled employees. They also want overtime payments and improvements in the safety conditions of the worksite.

The project is due for completion in 2014.

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