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Union and companies say that a lack of labor in construction delays projects

Image Credit: Notícias ao Minuto

The construction sector in Portugal is grappling with labor shortages, according to industry representatives. Speaking about the current challenges, Nuno Gonçalves from Feviccom highlighted difficulties in hiring due to low wages and precarious work conditions in the industry.

The Associação dos Industriais da Construção Civil e Obras Públicas (AICCOPN) estimates a shortage of approximately 80,000 workers. This gap is anticipated to widen given the workforce demands posed by significant upcoming public projects like the new Lisbon airport, high-speed rail, and 59,000 housing units announced by the government.

To address these issues, the federation proposed a minimum wage of 1,200 euros for the sector, emphasizing the prevalence of undeclared work and the need to recognize workers who contribute substantial overtime. Other suggestions include increasing vacation days to 25. Gonçalves also called for enhanced training and workplace safety measures, noting the high proportion of immigrant workers in the sector and their deployment to higher-paying jobs overseas.

He pointed out that some public works, particularly those under the Recovery and Resilience Plan (PRR) and projects by the Housing and Urban Rehabilitation Institute (IHRU), remain on paper despite plans to start on the ground.

AICCOPN echoed these concerns, stating that labor shortages might impact the country’s ability to meet PRR objectives, crucial for economic recovery and sustainable growth. They highlighted the recently signed Cooperation Protocol for Regulated Labor Migration as vital for expediting visa processes, allowing workers to enter the labor market efficiently. However, the association stressed that this will not solely resolve the structural issue of labor shortages. An integrated approach and policies to attract workers, including young individuals and the requalification of registered professionals in employment centers, are deemed necessary.

The association further noted that construction companies are keen to invest in human resource development to continue the sector’s modernization and industrialization. They referenced a significant salary increase of 13.2% following last year’s revision of the Collective Labor Agreement between the association and unions, reflecting ongoing industry changes.

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