Lisbon – Portugal’s Minister of Labour, Solidarity and Social Security, Maria do Rosário Palma Ramalho, has convened a meeting between representatives from the UGT union and the country’s major employer confederations to discuss proposed changes to labor laws. The meeting is scheduled for Monday, February 23rd, at 9:30 AM, following a period of initial discussions between the government and employer groups without union representation.
The move comes after the Minister met with employer confederations on Wednesday to address alterations to existing legislation. The UGT, the sole union invited to the talks, initially expressed concerns about the timing of the meeting, citing prior commitments. However, the Ministry confirmed that the invitation was accepted, paving the way for a broader discussion involving all key stakeholders in Portugal’s labor landscape. This round of negotiations focuses on critical areas impacting workers’ rights and employer obligations.
The government’s effort to facilitate dialogue comes amid scrutiny over the process. Employer representatives had previously indicated that a meeting without union participation would be unproductive, highlighting the importance of a unified approach to labor reform. Francisco Calheiros, president of the Confederation of Tourism of Portugal (CTP), representing CIP, CAP and CCP, stated that the employer groups were willing to accommodate the UGT’s presence, emphasizing a shared interest in reaching an agreement.
UGT’s Initial Concerns and Counter-Proposals
The UGT had previously announced its unavailability for a meeting on the initially proposed date, lamenting the public announcement of the meeting despite informing the government of its scheduling conflicts. Despite this, the union reaffirmed its willingness to engage in discussions regarding labor law revisions. The UGT has already submitted a comprehensive counter-proposal, titled “Trabalho com Direitos XXI” (Work with Rights XXI), outlining its priorities for a more transparent and effective social concertation process.
The UGT’s document, exceeding 30 pages, establishes clear “red lines” in areas such as flexible working hours, fixed-term contracts, dismissals, and outsourcing. It proposes alternative solutions, including increased severance pay for collective dismissals, revised criteria for job termination, and enhanced protection for working caregivers. Specifically, the UGT proposes a compensation of one month’s base salary and allowances for each complete year of service in the event of collective dismissal, with a minimum of three months’ pay.
Key Proposals and Government Considerations
The UGT’s proposals build upon earlier discussions with the government, which had previously considered increasing severance pay from 14 to 15 days per year of service. The union is also seeking to refine the requirements for dismissal due to job redundancy, advocating for a transparent and non-discriminatory process based on seniority, professional category, and company tenure. The proposed criteria prioritize employees with the least seniority in their current role, category, and overall employment with the company.
The government’s willingness to convene this meeting signals a commitment to addressing labor law concerns through dialogue. The outcome of the discussions on February 23rd will be crucial in shaping the future of Portugal’s labor regulations and ensuring a balance between the needs of employers and the rights of workers. The Ministry of Labour, led by Maria do Rosário Palma Ramalho, has emphasized its openness to continued conversation with the UGT, despite the initial scheduling challenges.
As negotiations progress, stakeholders will be closely watching for concrete proposals on key issues such as severance pay, job security, and the regulation of precarious employment practices. The “Trabalho com Direitos XXI” document provides a detailed roadmap for the UGT’s vision of a fairer and more equitable labor market in Portugal. The next steps will involve detailed examination of the UGT’s proposals and the development of a consensus-based approach to labor law reform.
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