The proposal, titled “Trabalho XXI,” remains under discussion with social partners but has already faced a firm rejection from trade unions, following a general strike organized last week to oppose the reform in the first joint stoppage since the ‘troika’ era.
While employer associations have endorsed the reform, calling it “a good basis for negotiation” albeit suggesting areas for improvement, unions describe it as a “civilizational setback” and an “attack on workers,” arguing that it weakens worker protections and tilts labor relations in favor of employers.
Despite the criticism, the Minister of Labor has stated that the government is “not available to withdraw the entire proposal” and intends to maintain its “key pillars” while remaining open to dialogue.
What Could Change?
Following the announcement of the general strike, the ministry presented a new proposal to UGT, including some amendments to the draft initially presented in July. However, the union deemed these changes “insufficient” to call off the strike.
The document, reviewed by Lusa, includes government concessions on issues like the simplification of dismissals in medium-sized companies and reducing the number of mandatory training hours in micro-enterprises.
It also integrates the end of leave for gestational mourning into abortion interruption leave and adjusts proposals related to limiting breastfeeding leave (keeping the two-year limit) and the payment of holiday and Christmas bonuses in twelfths, making the latter contingent on worker-employer agreement.
Additionally, it opens the possibility of restoring three holiday days related to attendance that were abolished during the ‘troika,’ while abandoning the option for workers to request up to two additional unpaid leave days.
The proposal also suggests increasing compensation for collective redundancies from 14 to 15 days and introducing continuous working hours in the private sector for parents with children up to 12 years old, or regardless of age if they have a chronic, oncological illness, or disability.
Despite these concessions, issues remain contentious for UGT and CGTP, persisting in the government’s draft.
This includes the return of individual time banks, the repeal of limits on ‘outsourcing’ restrictions upon dismissal, measures to make worker reintegration after unlawful dismissal more difficult, and changes to strike laws.
The minister noted that UGT would have more time to assess the new proposal while the union’s secretary-general acknowledged improvements but stated they are far from reaching an agreement.
Even though a consensus in Social Concertation would strengthen this proposal, any labor law changes must pass parliamentary scrutiny and be subject to public consultation.
Palma Ramalho has warned against prolonged negotiations in the Social Concertation, emphasizing the need for the government to negotiate without a majority to advance a legislative proposal.
Opposition to these changes has been voiced by left-wing parties. However, the proposal could proceed with Chega’s support, which is open to negotiation but seeks concessions on issues like breastfeeding, overtime, and shift work.
For now, as the President of the Republic stated, “the procession is still in the aisle” in Social Concertation, proceeding afterwards to the parliament. Debates and negotiations will be necessary in the specialty for the changes to reach Belém for consideration. The successor of Marcelo Rebelo de Sousa is yet to be determined.
