PANAMEÃ O LABOR CODE AND ITS APPLICATION TO WORK FOR THE EXPANSION L0S Exhibitor Minister Reynaldo Rivera

CONTENT The status of the Panama Canal Authority. Labour legislation and Canal Expansion MITRADEL Modernization and Enlargement of the Canal. The status of the Panama Canal Authority. The Constitution of the Republic rule all aspects of the Panama Canal in Title X IV. The Panama Canal Authority is subject to a special labor regime based on a m erit system, which maintains at least the conditions and rights similar to those existing on December 31, 1999. (Art.322) The status of the Panama Canal Authority. The status referred to in art. 322 of the Constitution, is developed in the orga nic law of the ACP (Law 19 of June 11, 1997), Chapter V entitled "Personnel Mana gement and Industrial Relations and only standard relations between the ACP and its workers, namely those associated with the operation of the Canal. Labour legislation and Canal Expansion By Law 28 of July 17, 2006 approving the proposed expansion of the Canal and dir ected to submit to referendum approval. The content should show that the canal e xpansion work and the construction of the third set of locks will be made by out sourcing work that is different from the proper operation of the Canal. Labour legislation and Canal Expansion The activities of these third parties, ie, national and international companies to be responsible for the redevelopment of the Canal and the construction of the third set of locks will be governed by the Labour Code and other provisions rel ating to procurement work within the country. Labour legislation and Canal Expansion Consequently, labor relations extension of the Canal and the construction of the third set of locks, governed inter alia, the following rules of individual char acter: Procurement systems work Permanent contracts given time contracts for specific works contracts. Workshop Working Overtime Hours and charges with their rest days. Holiday Bonus Thirteenth months old Rules also govern the collective. Labour legislation and the expansion of the Canal. The tasks that run the companies hired by PCA for the purpose of expansion and c onstruction of the third set of locks are considered as the maintenance of the w aterway. Consequently, the minimum wage to be paid in the work of the Canal Expa nsion and construction of the third set of locks is B/.2.90 per hour, in accorda nce with Decree 3 March 4, 1980, subject the provisions in contracts and collect ive agreements between workers and contractors. This amount of minimum wage must be paid by the contractor, subcontractor or any other figure that generates emp loyment relationship. Labour legislation and Canal Expansion MITRADEL ensure compliance with international labor standards in the activities of the Canal expansion and construction of the third set of locks. Standards tha t are well established in the ILO Conventions of which Panama is a signatory, su ch as: 29 105 87 98 100 111 138 182

Forced and compulsory labor Abolition of Forced Labour Freedom of association an d protection of the right of association Right to Organise and Collective Bargai ning Equal pay for men and women on Discrimination (Employment and Occupation) M inimum age for work, abolition of child labor on the worst forms child labor Labour legislation and Canal Expansion MITRADEL promote: Decent work. Gender equality. The compliance for people with disabilities. The e radication of child labor. MITRADEL modernizing and expanding the Canal. To cope with these tasks will carry MITRADEL: The creation of a coordinating agency for all aspects of work related to the exp ansion of the Canal. The technological innovation of processes and equipment (Ca ll Centers, Public Employment Service, digitization of contracts, work permits a nd others). The modernization of services for users (guidance, brokering and pla cement, among others) Strengthening programs to accident prevention, inspection and health, occupational and others. MITRADEL modernizing and expanding the Canal. The implementation of a new organic law focus on the promotion of social dialogu e€tripartism, consultation, fairness and balance in industrial relations. The c onsolidation of a highly qualified human resources in labor issues-oriented deve lopment tools to achieve rapprochement between the supply and labor demand. The transformation of MITRADEL website in order to provide quality information and s ervices, both workers and employers, as investors interested in the labor aspect s of canal expansion. Thank you very much