This chapter presents that threefold, the first is to analyze the arguments as carefully as possible in order to ascertain the validity of the claims regarding the Labor Code. A second objective is to find out what, if any, were the real gains to labor and the costs to employers brought about by the 1972 Labor Code. A third purpose is to ascertain the impact of the Labor Code as a distributive measure and to determine whether there were social costs stemming from the labor code. The chapter considers the wage increases due to the Labor Code and other measures enacted in favor of workers and the effect of collective agreements on wages and the cost increases to the employers due to the enhanced position of the working class after 1972. Wages are given as monthly averages for workers in the various sectors. The complaints of Panamanian businessmen were that the benefits were exhorbitant and beyond their means.