R 292150Z JAN 09
FM AMEMBASSY PANAMA
TO DEPT OF LABOR WASHDC
SECSTATE WASHDC 2926

UNCLAS PANAMA 000090 
 
 
INFO GENERALIZED SYSTEM OF PREFERENCES COLLECTIVE; INFO US 
MISSION GENEVA; DEPARTMENT OF LABOR FOR DOL/ILAB TINA 
MCCARTER; DEPARTMENT OF LABOR FOR DRL/IL TU DANG 
 
E.O. 12958: N/A 
TAGS: EINT ELAB ETRD PHUM SOC PM
SUBJECT: PANAMA: 2009 CHILD LABOR REPORT 
 
REF: 08 STATE 127448 
 
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Summary 
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¶1.  Panama continued its efforts to combat child labor in 
¶2008.  The GOP trained labor inspectors, prosecutors and 
judges, engaged in activities to increase public awareness 
and moved forward on its National Plan for the Eradication of 
Child Labor that is being implemented by an active, 
inter-agency body. Panama has enacted comprehensive laws to 
protect children from labor exploitation, including 
International Labor Organization (ILO) Convention 182 on the 
worst forms of child labor.  Information regarding the 
enforcement of these laws, including the number of 
investigations and civil and criminal sanctions for 
violations of child labor laws in 2008 has been formally 
requested from the MFA; post will provide an update to DOL 
when this information is received. In October of 2008, the 
Panamanian Comptroller General's Office conducted the Second 
National Survey on Child Labor in Panama, in conjunction with 
the ILO. The results of the survey will be made publicly 
available in February 2009.  According to the ILO survey on 
child labor performed in 2000, there were 47,976 child 
laborers in Panama.  The majority worked in the agricultural 
sector, followed by the general service sector and domestic 
labor.  Rates of work were higher among indigenous children 
than non-indigenous children. 
 
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Laws 
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¶2.  The laws governing child labor are set forth in: (a) 
Articles 117 to 125 of the Labor Code; (b) Article 716 of the 
Family Code; (c) Article 66 of the Constitution of Panama; 
and (d) Executive Decree 19, that specifies the worst forms 
of child labor.  Panama has ratified International Labor 
Organization (ILO) Convention No. 182 on the Worst Forms of 
Child Labor and ILO Convention No. 138 on the Minimum Work 
Age for children. Newly enacted Articles 176 to 183 of the 
Penal Code now govern the commercial sexual exploitation of 
children. 
 
¶3.  Generally, the minimum legal age for employment in Panama 
is 14 years for those who have completed primary school and 
15 years for those who have not. The Constitution of Panama 
states that children under 14 are prohibited from working 
"except under those exceptions established by law." There are 
exceptions that allow children aged 12 to 14 to be employed 
in light domestic and agricultural work outside of school 
hours and, in the case of domestic work, with the permission 
of the Department of Labor.  The Labor Code requires that a 
minor's need to attend school must be considered when 
determining work hours.  For minors under 16, the maximum 
work hours are six hours a day, 36 hours per week; for minors 
aged 16 to 18, the maximum work hours are 7 hours a day, 42 
hours per week.  These numbers are at variance with the 
Constitution of Panama that limits children from 14 to 18 to 
6 hours of work a day.  Children under 18 may not work 
between the hours of 6 a.m. and 8 p.m. 
 
¶4.  In general, minors under 18 years of age are prohibited 
from engaging in work that by its nature or conditions 
threatens life, health or morality. The Labor Code gives some 
examples of this work, including: working in bars or 
nightclubs, or in establishments where alcohol is sold; 
working in transportation or warehousing, or on railways, 
boats or airplanes; working underground, such as in mines or 
tunnels; and working with electricity or with toxic, 
flammable, explosive or radioactive materials. There are 
exceptions to this rule for minors in vocational schools or 
where otherwise deemed appropriate by competent authorities. 
These exceptions do not apply, however, to employment in 
places where alcohol is sold or to work that involves 
radioactive material.  Entering into an employment contract 
with a minor requires parental consent or the approval of the 
administrative authorities where parental consent cannot be 
obtained.  All employers of minors must keep a record that 
includes the full name of the minor employee's parents or 
guardians, the employee's date of birth, address, the nature 
of the work to be performed, the number of work hours and 
schedule, the salary and the employee's level of schooling. 
Employers that contract with minors must guarantee their 
rights to social security under Law 51, enacted December, 
¶2005.  Employing minors in violation of the Labor Code can 
result in fines from USD 50 to USD 700. When a violation of 
the labor code is found by the Ministry of Labor, a request 
for sanction is submitted to the General Director.  Sanctions 
are imposed after an administrative process. 
 
¶5.  Executive Decree 19 was enacted on June 12, 2006 and 
incorporated into Panamanian law an official list of worst 
forms of child labor, as required by Article 4 of ILO 
Convention No. 182.  The worst forms of child labor specified 
in the decree include work underground or in areas with 
unstable ground, such as excavation and mining; work under 
water and in open water; work at high altitude, such as 
construction or window washing; work outside, with prolonged 
exposure to sun, dangerous animals or dangerous biological or 
chemical agents; work in physically limited space or without 
sufficient light or air; work with heavy equipment or 
equipment in motion; work involving physical violence, verbal 
or sexual abuse, or exposure to immoral acts or alcohol; work 
requiring exposure to loud noises or vibrations, chemicals, 
contaminants, explosives, flammable materials, radiation or 
electricity; work requiring a high level of concentration; 
work in the streets; and domestic work without sufficient 
time off. Article 5 of Decree 19 grants power to the 
appropriate authorities to identify and sanction violators. 
When it encounters a worst form of child labor, the Ministry 
of Labor submits a report to the judicial branch for 
prosecution.  Engaging a minor in a worst form of child labor 
is a crime under the penal code.  Under Article 215D of law 
38, employment of a minor in conditions dangerous to health, 
safety or morality is  punishable by a sentence of two to six 
years in prison and/or payment for any required medical 
treatment. 
 
¶6.  In May 2008, a penal code reform package went into effect 
that prohibits the commercial sexual exploitation of minors, 
including prostitution, trafficking and child pornography, 
now specified in Sections 177 to 182 of the Penal Code. The 
law prohibits the facilitation, instigation or organization 
of any form of sexual exploitation of minors, and carries a 
penalty of 8 to 10 years in prison.  In the area of 
trafficking, the law prohibits the internal displacement or 
movement of a person in or out of the country for the purpose 
of receiving remuneration for sexual acts, and carries a 
penalty of 6 to 9 years in prison when the activity involves 
a minor.  The law also specifically imposes an 8 to 10 year 
prison sentence for promoting, facilitating or executing the 
capture, transport or receipt of a minor inside or outside 
the country for the purpose of sexual exploitation. 
Regarding child pornography, its fabrication, production, 
exhibition, publication or distribution carries a penalty of 
5 to 10 years in prison and 10 to 15 years if the victim is 
less than 14 years old. Possession of child pornography is 
punishable by 3 to 5 years in prison. New Immigration Law 3 
went into effect in August of 2008.  The law places special 
emphasis on combating trafficking involving minors and 
creates a trafficking victims unit within the office of 
immigration. The unit must provide physical and identity 
protection to victims and return them to their country of 
origin. 
 
¶7.  Panama's military was abolished under a 1990 amendment to 
the constitution. 
 
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Implementation and Enforcement 
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¶8.  The Ministry of Labor employed 190 labor inspectors in 
¶2008.  All have received specialized training in recognizing 
child labor violations.  In addition, there were 4 inspectors 
and 5 technicians dedicated exclusively to child labor. 
Labor inspectors conducted 440 inspections in 2008. 
According to media reports, the ministry encountered 789 
minors working in businesses of various kinds.  At least one 
inspection resulted in a referral to the judicial branch as a 
worst form of child labor.  Post has not yet received 
specific information regarding the amount of civil or 
criminal sanctions imposed for child labor violations, but 
expects this information to be forthcoming through a 
coordinated reporting effort with the GOP.  Between June 2007 
and July 2008, the Panamanian National Police Sex Crimes Unit 
investigated 34 cases of child prostitution, 24 cases of 
child pornography and 16 cases of trafficking.  It is unclear 
whether any of the trafficking cases involved children. 
There is no information currently available regarding the 
outcome of these cases.  Post may receive additional 
information regarding the investigation and prosecution of 
cases involving the sexual exploitation of children; post 
will report SEPTEL. 
 
¶9.  The Ministry of Labor provided training to 30 new hires 
in 2008, as well as providing 10 training sessions to its 
existing inspectors and to prosecutors, judges and 
magistrates to increase awareness on child labor issues.  It 
also contracted with NGO Casa Esperanza (House of Hope) to 
receive training on child labor and trafficking of children. 
The Ministry of Labor partnered with the ILO in 2008 to 
develop an internal protocol to be used to train inspectors 
and other government officials on child labor issues. A total 
of USD 10,000 was budgeted to create and publish awareness 
raising materials using the new protocol. (Note: Panama uses 
the U.S. dollar as its currency. Though often referred to as 
the Balboa, it is in fact the U.S. dollar.)  The Ministry of 
Labor is pushing for the President of Panama to sign an 
executive decree to mandate the use of the protocol to train 
officials in the social services and judicial sectors. 
 
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Policies and Programs 
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¶10.  Panama continued to implement its National Plan for the 
Eradication of Child Labor and the Protection of Adolescent 
Workers for 2007 to 2011.  The program was administered 
through CETIPPAT (Committee for the Eradication of Child 
Labor and the Protection of Adolescent Workers), that was 
established in 1999 by Executive Order No. 37. CETIPPAT was 
responsible for formulating the GOP's child labor efforts, 
and the Ministry of Labor was responsible for coordinating 
the various government agencies. In April 2008, CETIPPAT 
began its program for the prevention and eradication of child 
labor in Panama's Panama and Colon provinces. (Note: Panama 
refers to the Republic of Panama, the Province of Panama, and 
the city of Panama.)  This project was funded entirely from 
the GOP general budget in the amount of USD 1.22 million. 
Under the program, child workers and their families were 
located and provided with a variety of scholarships, training 
and social services in an effort to lower the likelihood of 
the targeted child returning to the work force.  In 2008, 
2,500 children participated in the program and received 
scholarships from the Institute for Human Resources, Capacity 
Building and Vocational Training (IFAHRU), an independent 
government agency with its own budget, overseen by the 
executive branch.  The National Institute of Art and Culture 
(INAC) provided tutoring in the arts and cultural education. 
PANDEPORTES (Panama Sports), a government organization that 
promotes sports and physical education, provided children 
with the opportunity to engage in sports and other 
activities.  The National Institute of Health assisted 
children with medical problems.  Where needed, the National 
Institute of Vocational Training for Human Development 
(INADEH) trained parents in low level job skills and 
sustainability to help eradicate the need for children to be 
working.  The Ministry of Social Development provided 
follow-up visits and reported ongoing progress and program 
retention rates.  The Ministry of Education provided 
reporting on academic performance under the scholarships. 
UNICEF will perform an evaluation of the program that will be 
made publicly available in March, 2009. 
 
¶11.  The GOP also participated in three specific programs 
funded by DOL and ILO to combat child labor in rural areas. 
Starting in February, 2008 to continue for a period of 18 
months, these programs included: the Direct Action Program 
for the Eradication of Child Labor in Commercial Agriculture 
in the Ngobe Bugle indigenous region (comarca), with a budget 
of USD 129,966; the Direct Action Program for the Eradication 
of Dangerous Child and Adolescent Labor in the Santiago 
District, Veraguas Province, with a budget of USD 124,404; 
and the Direct Action Program for the Eradication of 
Dangerous Child and Adolescent Labor in the Chorrera 
District, Panama Province, with a budget of USD 113,896. 
 
¶12.  The Ministry of Labor was engaged in 15 different 
programs for the eradication of child labor and provided 
training and direct outreach to institutions, children and 
families in Panama City, San Miguelito, Chorrera, Santiago 
and in the Ngobe Bugle and Kuna Yala indigenous regions.  The 
Ministry of Labor was granted USD 500,000 from the national 
budget to be used to combat child labor in 2009.  These funds 
will be used in part to establish regional outreach offices 
in 12 regions of the country, in order to more effectively 
monitor and combat child labor throughout Panama.  Overall, 
it is estimated that the Ministry of Labor engaged in more 
than 100 awareness initiatives and provided direct outreach 
to more than 500 children, in the form of data collection and 
education. In cooperation with the Ministry of Labor's 
efforts, CETIPPAT provided education and awareness training 
directly to families in which children were engaged in child 
labor in eastern Panama, Panama City, Chorrera, San Miguelito 
and Colon.  The Ministry of Social Development also engaged 
in outreach initiatives to various institutions and collected 
data from children under specific programs to eradicate child 
labor in the following sectors: fishing, agriculture, crafts, 
car washing, supermarket bagging, garbage collection, 
collection of bus fares and domestic labor.  (Some of the 
work referenced in this paragraph was performed under the 
Direct Action programs funded by DOL, as referenced in 
paragraph 11). 
 
¶13.  NGO Casa Esperanza, dedicated exclusively to combating 
child labor and the trafficking of children, worked 
extensively with the GOP in 2008 and helped to implement 
programs on behalf of the Ministry of Social Development and 
the Ministry of Labor.  In 2008, Casa Esperanza employed 138 
people and provided outreach to 5,000 working children in the 
form of health, food, education and recreation programs.  Of 
the 5,000 children assisted in 2008, it is estimated that 
1,782 stopped work entirely, while others are in the process 
of transitioning out of the work force. Casa Esperanza had a 
presence in 40 communities in the indigenous regions, 
including tutoring centers in Chiriqui, Veraguas and other 
areas.  Casa Esperanza received USD 2.5 million in 2008 from 
a variety of sources. 
 
¶14.  The Ministry of Social Development provided shelter and 
other services to victims of commercial sexual exploitation, 
including children, by using substitute families, its own 
shelters and the shelter of NGO Hogar Malambo, which it 
subsidized.  The Ministry of Social Development provided 
funding to 43 children's shelters operated by NGOs, in seven 
provinces.  Between January and August, these shelters housed 
1,927 children for various reasons.  The Ministry of Social 
Development continued a program that used pamphlets in 
schools to sensitize teachers, children and parents to the 
maltreatment and sexual abuse of children. 
 
¶15.  Education is compulsory in Panama through the ninth 
grade and from ages 6 to 14.  By law, public education is 
free through high school.  In practice, children did not 
always attend school due to traditional attitudes, financial 
and economic constraints, lack of transportation and the 
scarcity of secondary schools. 
 
¶16.  The current administration gave initial approval for the 
formation and funding of a new, National Secretariat for 
Children, Adolescents and Family.  The National Secretariat 
would be an autonomous government agency with separate 
funding and was expected to be enacted into law under the 
current administration.  It was anticipated that the programs 
currently being administered by CETIPPAT would be carried out 
by the National Secretariat going forward, as CETIPPAT will 
dissolve with the termination of current administration. 
 
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Sectors and Work Activities 
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¶17.  In October 2008, the Panamanian General Comptroller's 
Office conducted the Second National Survey on Child Labor in 
Panama.  Official results of this survey are expected to be 
made public in February of 2009.  The last official data on 
child labor in Panama was the First National Survey on Child 
Labor, conducted in 2000. The survey reported that there are 
47,976 children from the ages of 5 to 17 working in Panama, 
14,991 in urban areas and 32,985 in rural areas.  Government 
agencies and NGOs reported that they expected to see an 
increase in the numbers of child laborers in the 2008 report. 
 This expectation is due to the fact that the government was 
now investigating and reporting more extensively on child 
labor, especially previously undocumented cases in the 
interior of the country.  There was also a perceived increase 
of children working as street hawkers in Panama City and of 
children engaged in commercial fishing. According to a 
separate survey of households performed by the National 
Comptroller's Office in 2005, there was an increase of 5,000 
working children.  This increase in numbers was also expected 
to be reflected in the 2008 report. 
 
¶18.  The majority of child labor in Panama was in rural areas 
and in the agricultural sector, where children worked on 
farms that produced coffee, melons, tomatoes, onions and, to 
a lesser extent according to several reports, sugarcane. 
Coffee harvesting was reported to have the highest incidence 
of child labor of any sector and involved high numbers of 
indigenous children.  In general, the number of indigenous 
child laborers was much higher than that of non-indigenous 
children. Children also worked as domestic servants, mainly 
girls in the interior of the country. New sectors were 
reported to be using child labor in rural areas, including 
skin diving and the extraction of copper and iron ore. 
According to documentation provided by CETIPPAT, of the urban 
child laborers in Panama City and San Miguelito, 40 percent 
were baggers in supermarkets; 11.8 percent were collectors of 
some kind; 10.7 percent were street vendors; 9.2 percent 
worked on buses; 6.4 percent were vendors working at fixed 
locations; 4.7 percent were shoe shiners and window washers; 
3.3 percent were loaders; and the remaining 8.9 percent 
worked in other service sector areas, such as shoemaking, 
hair styling, manicuring and painting. Recently, a worst form 
of child labor was reported involving children that lived 
near urban garbage dumps and engaged in collecting various 
materials for resale and recycling.  The majority of children 
engaged in this work were from the Kuna indigenous group. 
NGO Casa Esperanza made substantial progress eliminating this 
problem in 2008 by working in partnership with the sanitation 
companies to limit public access to dumping areas. 
 
 
STEPHENSON