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Employers applaud labor reform. Unions say it weakens rights.

Following the social dialogue meeting, the president of the Confederation of Portuguese Business (CIP) praised the government for deciding to approve a draft bill in the Council of Ministers rather than a decree-law, which the confederation considers demonstrates a “democratic culture” and “respect” for social partners.

“We think it’s a good working basis,” but “there is significant room for improvement,” stated Armindo Monteiro, noting it still needs to be adapted to the 21st century and emphasizing that a large part of the contentious issues are labor-related.

“Many of the measures announced correct the harm introduced” by the Decent Work Agenda, he said, referring to the restrictions on outsourcing after dismissal. Regarding the individual hours bank, Armindo Monteiro pointed out that it still has “some constraints,” but highlighted the intention to restore it as “positive.”

Concerning changes to minimum services, according to CIP, the government proposal does not specify a fixed percentage, but the idea is to avoid “arbitrariness” since its current definition is “vague.”

In this context, the Minister of Labor, Solidarity and Social Security explained that the government proposal includes a new area: “the care of children and sick or disabled people,” including those in long-term care, and confirmed that this also covers crèches and nursing homes.

The president of the Portuguese Tourism Confederation (CTP) also considered it a “good negotiation basis” and, like CIP, believes it helps “correct past situations.”

“It is very important that the legislation comes to the table,” indicated Francisco Calheiros, noting that the government proposal covers “practically all areas” and is “quite comprehensive,” so the CTP will need “some maturation” to propose contributions.

According to the CTP president, the changes include proposals targeting the individual hours bank and holiday contracts for students.

The president of the Confederation of Commerce and Services of Portugal (CCP) also stated that the draft is “quite broad” and called for the need to find “minimal consensus” in the context of social dialogue in light of the current parliamentary composition.

“It is positive to address the issue. It is a very dense subject with implications for social peace, and therefore it is important to find” consensus, reiterated João Vieira Lopes, also noting that “history has shown that one of the union confederations” has been left out of agreements within the dialogue, but “there will be an effort” to reach an agreement.

Alongside other business confederations, the CCP highlighted as positive the issue of restrictions on outsourcing, the individual hours bank, and measures for digital platforms.

Meanwhile, trade union centrals were more critical of the government proposal.

For the Secretary-General of the General Union of Workers (UGT), the document contains some proposals that “weaken workers’ rights,” leading the union center to conduct a “reflection with its unions next week.”

“There are many areas that need thorough analysis,” he emphasized, noting that the UGT will provide “its contributions.”

Mário Mourão further reiterated that given the “current context” of economic growth and slowing inflation, the UGT does not consider this a “priority issue,” arguing that priority should be given to discussing social value, as we are “almost on the eve of the State Budget submission,” as well as issues related to housing or immigration.

The Secretary-General of the General Confederation of Portuguese Workers – National Interunion (CGTP) considers this a “attempt to assault workers’ rights.”

Tiago Oliveira also stated that this proposal represents a “setback” and argued that, contrary to the government’s claims, the changes will not modernize labor law, but rather represent a “return to the past.”

CAP did not make any statements to journalists upon leaving the meeting.

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