More than 480 people were arrested this Wednesday in Panama during violent protests in rejection of a Social Security reform project, triggering clashes between the police and the demonstrators that left at least 16 injured.

The director of the National Police (PN) of Panama, Jaime Fernández, reported in a press conference that there are “more than 480 people detained”, after an “unprecedented escalation of violence” this morning, which left a balance of damage “to the national police and its resources” in the amount of “267,000 dollars”.

In addition to being injured, “16 units of the National Police”, two of which hit with blunt objects (blocks, screws and steel bars among others) thrown by the demonstrators from the top of a tower under construction of a public hospital for children, where they entrenched themselves.

The Single Union of Workers in the Construction and Similar Industry (Suntracs) blocked a section of the maritime avenue, one of the main arteries of Panama City, and other key points of the capital in rejection of the bill that reforms the Social Security Fund (CSS), under discussion in the Legislature.

Previously, the police director had pointed out, in statements to journalists, that “they have had to set up a special prison” because they are going to “judicialize” “all” the demonstrators, including the “union leaders”, within the framework of respect for due process, he said.

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The president of Panama, José Raúl Mulino, described it as “intolerable” that the work of the pediatric hospital is used as a “barricade of union terrorists to subvert public order” and asked for the action of the Prosecutor’s Office with “all the weight of the law.” After that, the Prosecutor’s Office initiated an “ex officio investigation” for these acts.

For his part, Saúl Méndez, the leader of Suntracs – the most powerful union in the country – said in a video broadcast by his official channels that his protest was “peaceful” and regretted that he was “repressed” in the area of the hospital under construction, which was “besieged”.

Student protests have also been reported in front of the University of Panama, which canceled classes for this Wednesday.

On Wednesday, Parliament discussed two bills (independent of each other) on the Social Security Fund of Panama, key to the economic future of that entity, submerged for years in an administrative and financial crisis, which could liquidate one of the two pension subsystems.

The deputies have already approved the first of them that authorizes the Executive the transfer of 91 million dollars as “extraordinary funds” to “partially reinforce the costs” of the retirements corresponding to this month of February, according to official information.

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And they discuss in the second of the three mandatory debates, another bill, broader and of greater importance, that reforms Panamanian Social Security after months of discussion by blocks in the parliamentary health commission in the face of the difficulties requested by the Panamanian president and other social sectors.

This bill is a proposal of the Executive made in consensus by dialogue tables with economic, trade union and social sectors. The original document included a three-year increase in the retirement age – up to 65 for men and 60 for women – and 3% of the employer’s quota, among others.

However, the deputies of the commission overturned the article that raised the retirement age, one of the points most rejected by the parliamentarians, unions and the population, and increased the annual contribution of the Executive to 1.4 billion dollars compared to the 1.2 billion dollars proposed by the Government.

The hemicycle, composed of 71 seats, will hold two rounds of discussions in this second phase with half an hour of pleading for each deputy, so the debate could last approximately two weeks, according to an official source told EFE.

This proposal to change Social Security has raised controversy in Panama with some demonstrations in the streets in recent months, a wide public debate and requests for specific modifications by private companies.

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