Thousands of Panamanians mobilized in cities across the country on Tuesday, March 18, to demand the immediate repeal of Law 462, which seeks to privatize Panamanian Social Security, among other reforms. The national mobilization was led by the Single National Union of Construction and Similar Workers (SUNTRACS) of Panama, which boasts over 50,000 members.
On X, SUNTRACS wrote, “This law imposes a system of individual accounts that harms workers and benefits the banks. While the people protested, the president signed the law from the Palacio de las Garzas. With this signature, a model that dismantles social security and puts at risk the pensions of thousands of Panamanians is consolidated. Why is this law a problem? Because it turns pensions into private businesses, leaving workers with miserable pensions. Social security should guarantee welfare, not profits for a few.”
The National Confederation of Independent Trade Union Unity (CONUSI) joined the march, affirming that now “it is up to the people to fight with all their tools”. In addition, the union organization mobilized: “Against the privatization of [Social Security], Against mining, Against dams.”
La marcha por la defensa de la CSS que empezó y no tienen fin hasta derogar ese mamotreto que concreta el robo del siglo
HILO 🧵 pic.twitter.com/Ng7M5spOv1— Suntracs Panama ⚒ (@SuntracsPanama) March 18, 2025
According to several critics of the measure, those behind the drafting, promotion, and approval of the law are business groups linked to financial power. In this regard, teleSUR journalist Rekha Chandirman said, “Panama is graduating as the last stronghold of the Chicago Boys in Latin America,” referring to the geopolitical and neoliberal project imposed by foreign powers in Latin American countries for over 50 years.
Amid mass opposition, Congress and Mulinó approved the law
Despite the efforts of the country’s main labor unions, Law 462 was approved in the National Assembly with 48 votes in favor and 23 against.
Subsequently, the law was signed by neoliberal President José Raúl Mulino. In a message to the nation, Mulino stated that with the law’s approval, “An important step is taken towards the sustainability of the Social Security System in Panama, ensuring both health benefits and the future of pensions for the Panamanians of today and tomorrow…The right thing to do was to present a law that would guarantee pension funds, where the State would invest more than one billion dollars annually, and employers would make an extra sacrifice. That is what was done.”
Mulino presented the modifications to his initial version of the law, as a sign of the democratic process. In that version, the retirement age and contributor taxes had been increased.
However, according to Chandirmani, the law allows for the inclusion of contracted financial intermediaries between the Social Security fund and its contributors. This would allow them to manage a capital of USD 10 billion, despite the institution having significant financial stability on its own. In addition, the law introduces a new formula for calculating how much money a retiree should receive, which depends on the yield of the savings in the individual accounts, in addition to other variables.
“Does Social Security, an institution with more than 10 billion in funds, need ‘brokers’ to access markets? The institution which alone has a credit score, which is the guarantor of loans even from the State itself? You don’t have to know quantum physics to realize the whitewashing of financial intermediaries…” Chandrimani stated.
“The people continue to fight”
For SUNTRACS, “This measure, described as the ‘robbery of the century’, represents a serious setback in the country’s social security, since it transfers the administration of pensions to a system of individual capitalization that historically has demonstrated its failure in other countries.”
In addition, they announced that despite the law’s approval, the struggle will continue:
“The union and popular organizations have made it clear that this struggle does not end with the approval of the law. The mobilization of March 18 was only the beginning of a day of resistance that will continue until Law 462 is repealed. From SUNTRACS, we reaffirm our commitment to the defense of the Social Security Fund and we call on the population to remain alert and actively participate in the upcoming protest actions. The future of our pensions cannot be left in the hands of the bankers. Social Security is not a business, it is a right, and the Panamanian people are ready to defend it.”
