Recently we had a conversation with an attorney who told us that every day the labor strike goes on, Red Frog is responsible for a day's wages for each and every employee that is on strike per the labor law in Panama.
This would put to rest any ideas I had about why they haven't ended strike. My theory was that, while waiting for the second round of funding, Red Frog was smart in not settling the strike as they would have all these workers sittin around getting paid for doing nothing. Now it seems that this might be the case anyway.
Does anyone have any more information on this issue? I sure would be curious. If this is true, they are getting deeper into debt the longer the strike goes on.
Mick @ Lot 83
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3 comments:
As posted over a year ago at Redfrogians, the legal obilgations to pay striking workers is for every day where there are no negotiations toward a resolution between the two parties. Lot 11
The hole gets deeper every day. I do believe that RF can negotiate these "fallin wages" but I would think it will be harder every day that goes by.
Don't you think this is something every owner should know.
We had this confirmed to us by a Panamanian attorney when we were there in March. Seems the original dispute for which the strike was called centered on costs <$200K.
Now, with the legal obligation to pay striking workers, Red Frog has dug themselves into a hole millions of dollars deep.
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