"Race to the Bottom"

The race to the bottom in the banana industry is attributed primarily to overproduction in the industry, increased competition in European markets, and consolidating supermarket chains that demand ever lower prices, prompting transnational banana companies to cut costs and reverse historic gains that have been made by banana unions in Central America and Colombia.

These forces have prompted a "race to the bottom" for worker rights, wages, benefits, and working conditions. In recent years, Del Monte, Dole and Chiquita have all cut jobs, wages and benefits, and closed plantations.

Banana production is increasingly concentrated in low-wage, non-union Ecuador and the low-wage, non-union Pacific coast of Guatemala, putting on pressure to lower wages and working conditions on union plantations elsewhere. West Africa and other regions are also expected to increase low-wage, non-union competition, at least for exports to the European market.

n December 2009, stakeholders representing the banana industry formed the World Banana Forum (WBF).   The World Banana Forum includes trade unions (e.g. the Coordination of Latin America Banana Worker Unions, the International Union of Foodworkers), small farmer organizations, transnational banana companies (e.g. Dole, Chiquita, Bonita), retailers (e.g.Wal-Mart), governments, alternative trade groups (e.g. Transfair USA), environmental groups, and worker rights advocates (e.g. USLEAP, Banana Link, BanaFair).