The strike began just after midnight. Union leader Antenor Guadamuz said the decision was made because Metro operator Mi Bus has not fulfilled compensation agreements and overtime payments to workers.
"We are asking for the direct intervention of President Juan Carlos Varela", he stated. "Otherwise, the strike will continue until the ultimate consequences".
Long lines of people were observed at various bus stops and hundreds of others crowded the Panama Metro stations. an estimated 700,000 people use the service daily.
The striking workers are at a standoff with police at all the locations where the Metro buses are parked.
The Secretary of State Communication has accused the union leaders of creating false expectations among the drivers by telling them they would be receiving payments this week. That will not happen because the transfer of the operation of the system from Mi Bus to the government is not yet complete.
It stated that the strike is unjustified and warned that the government will take steps to ensure service is restored.
One of the measures announced by the government is that the Corredor Norte and Corredor Sur will be free until the strike is resolved.
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