Joshua Cortez

Blood Bananas Chiquita is a brand that has been through major turmoil, scandal and success. Through it all they have had to deal with significant labor relation issues that go far beyond your typical corporate labor relations issues. From being accused of supporting terrorism and drug trafficking to contributing to the economic collapse of Columbia, Chiquita has had to endure many self-inflicted wounds. Chiquita is one biggest and most powerful food marketing and distributing companies in the world, and one of the world's largest banana producers. The company shows annual revenues of approximately $4.5 billion and about 25,000 employees operating in more than 70 countries. The banana market, worth about $5 billion a year in 2001, is the most important global fruit export. The majority of the 14 million tons of bananas exported every year come from Latin America. Between 1997 and 2004 Chiquita was faced with a terrible situation in Columbia. The United Self-Defense Forces of Columbia (AUC) was known to terrorize the locals. Chiquita had a large plant in Columbia and was a premier employer of the Columbian people. The AUC knew that if they could intimidate Chiquita it would be a profitable endeavor. The AUC used kidnapping, torture, disappearance, rape, murder, beatings, extortion and drug trafficking as was of intimidating employees. Chiquita the brand was very invested in Columbia and because of the profits and climate they tried to turn a blind eye to employee working conditions. After the AUC continued to terrorize Chiquitas employees, executives at Chiquita decided to make payments to the AUC so that they would leave their employees alone. Many would say that Chiquita should have just pulled out of Columbia and cut its losses. There are many reasons why Chiquita couldn’t pull out. First morally, they couldn’t just abandon their employees knowing that if they left their employees would face harsh economic conditions. Secondly, their employees were already being killed and kidnapped so the slow pull out process would only cause further potential harm to employees. Furthermore the economic impact of putting so many people out of work would be devastating to Columbia. Last but not least, the Columbian market was far too profitable and labor was far too inexpensive to not pay the AUC. At first the AUC was just a local group of gangsters with a stronghold on the local economy but through time they began to expand. It is rumored that along with the payments for protection, the AUC also forced Chiquita to smuggle guns and drugs on their shipments. Because of the AUC’s violent ways and brash demeanor, they quickly became classified as a terrorist organization by the United States of America. While Chiquita maintained that it paid the AUC to protect its workers, local humanitarian groups said that Chiquita also paid the AUC to take out or hurt their completion. This shines a less than favorable light on Chiquita. Chiquita was also accused of smuggling guns and drugs through their ships and company owned ports. In 1997 authorities seized more than a ton of cocaine from 7 Chiquita ships, but the shipment was blamed on lax Columbian regulations rather than blaming the company themselves. These conditions that Chiquita enabled took advantage of their employees, put them in harm’s way and unfairly and unethically targeted competitors. Chiquita realized that they were in too deep with terrorist organizations and the headlines they were being brought into put a huge pressure on the company. In April 2003, Company brass went to the justice department to self-report the payments they had been making and to ask for guidance as of what to do. While supporting the terrorist is a felony, the justice department was hesitant to demand Chiquita to stop because they knew the economic impact that would happen if Chiquita suddenly pulled out. The justice department was also well aware of the violent repercussions that employees faced if payments to the AUC stopped and they were not willing to have blood on their hands. With no direction from the Justice department Chiquita continued to make payments to the AUC for 10 more months while the Justice department stood by and watched. This complicated any actual criminal filings because the Justice department didn’t put a stop to these payments immediately. The Justice department decided to handle the case through document of criminal information instead of handing down actual indictments. Chiquita was handed a slap on the wrist of 25 million dollars in which they were give 5 years to make equal installment payments. For a company of this stature, this was not even enough to make a dent. Chiquita sold its Columbian company to a local banana company. This was not a punishment for Chiquita but rather a passing of the buck, now the AUC was someone else’s problem. None of the Chiquita Company’s execs suffered significant punishment and are currently enjoying retirement. The slap on the wrist fine is not enough to think that Chiquita would act any differently in the future if they were faced with similar circumstances. Survivors of people that the AUC killed, sued Chiquita to no avail. Chiquita’s labor relations with their employees was a complicated and cumbersome ball of confusion. Chiquita was willing to pay a terrorist organization to leave their employees alone. While that in and of itself almost seems noble, the fact remains that they seemed to be ok making the payments because it was convenient for business. Paying the group of thugs was profitable and there was an added benefit of the AUC intimidating or killing competitors. The employees in an unstable economic environment were happy to have work and did not have a voice in what was happening around them. Standing up for themselves could have had deadly consequences. If Chiquita could have gotten away with continuing to pay AUC I believe they would have. Conditions would have continued to get worse and payments to the AUC may have increased and further violence was inevitable.