The CGTP argues that the proposed measures, if implemented, would further attack workers’ rights and deepen the model based on low wages and job insecurity, according to a statement on their website.
In a document titled “Reasons to Combat the Government PSD/CDS Proposals for Labor Legislation,” the union highlights “changes that foster precarious labor relations,” such as the extended duration of fixed-term contracts, the broadening of very short-term contracts, changes in temporary work, intermittent work, and digital platforms, the repeal of the prohibition on outsourcing after dismissal, and restrictions on economically dependent self-employed workers.
The CGTP also criticizes changes “that deepen the deregulation of working time,” including the full reinstatement of the time bank, expanded exemptions from work schedules, and anticipation or extension of holidays (with the possibility of two extra unpaid days).
The union further opposes “changes that aim to perpetuate low wages,” particularly the “perverse effects” of the possibility of paying Christmas and holiday bonuses in installments, as well as changes in contract termination, redundancies, parental leave, collective bargaining rights, union freedom, and strike rights.
UGT considers the labor law reform proposed by the government to be “untimely, inappropriate and unjustified,” suggesting other more important priorities.
“Our economy is growing, our public accounts are consolidated, and there is no external pressure to correct potential imbalances,” assured UGT, noting that the “labor market is functioning well, with employment numbers reaching records and unemployment historically low, except for youth unemployment,” they said in a statement.
The UGT does not understand “why the government prioritizes labor legislation changes to such a degree that it should be the first post-electoral discussion in the CPCS [Permanent Commission for Social Concertation].”
The organization reminded that “there was a significant change in labor legislation not long ago,” pointing to other priorities, such as intervention in salaries, housing, and professional training.
UGT expressed concern that the starting point of the discussion is “flexibility,” which, contrary to what the government believes, is not synonymous with modernization.
“Many of the changes address particularly sensitive issues, even fundamental rights, which explains the clear direction of the proposals made, to the clear satisfaction of employers,” they highlighted.
UGT warns that on the table is “the removal of matters from the principle of the most favorable treatment (telework and overtime payment),” as well as expanding the grounds and duration of fixed-term contracts and other precarious hiring, reintroduction of the individual time bank, reduction of professional training hours, among others, including “removing powers from the ACT [Authority for Working Conditions].”
“The proposals aim towards greater individualization of labor relations, liberalization, and precariousness of the labor market, seeking to introduce more discretion and grant more power to employers,” they stated.
Conversely, the confederations welcomed the government’s draft labor law reform, stating that “it is a good negotiation base” and that “it corrects past situations,” although there is “room for significant improvement.”
The President of the Confederação Empresarial de Portugal (CIP) noted that “many of the announced measures correct the wrongs introduced” with the Dignified Work Agenda, especially regarding ‘outsourcing’ restrictions after dismissals.
On the individual time bank, Armindo Monteiro noted it still has “some constraints,” but regarded the intention to reinstate it as “positive,” while on changes to minimum services, he advocates that “there should be no arbitrariness,” as its current definition is “vague.”
Similarly, the President of the Confederação do Turismo de Portugal (CTP) believes that the draft reform is “a good negotiation base.”
“It is very important that the legislation was brought to the table,” stated Francisco Calheiros, indicating that the government’s proposal covers “practically all areas” and is “quite comprehensive,” suggesting the CTP will need “some maturation” to contribute.
The President of the Confederação do Comércio e Serviços de Portugal (CCP) also remarked that the draft is “quite extensive” and called for finding “minimal consensus” at the social concertation table.
Alongside other business confederations, CCP emphasized the positive aspects of ‘outsourcing’ restrictions, individual time bank, and measures for digital platforms.
Highlighting that the proposed reform “is complex and politically delicate,” foreseeing changes to more than 100 articles of the Labor Code, the CCP intends to comment in more detail at the beginning of September.
