Portugal Government Advances Labour Reform Bill Amid Union Opposition
Labour Reform Bill Faces Political and Social Challenges
By Sergio Goncalves
LISBON, May 14 (Reuters) - Portugal's minority centre-right government pressed ahead on Thursday with its labour reform plan, unveiling a slightly revised draft bill after talks with unions collapsed, in hope of getting parliamentary approval with the far right´s support.
The overhaul of more than 100 articles of the labour code, first launched in September, is a key pillar of the government's agenda to boost productivity and growth.
Breakdown of Negotiations
Mandatory talks between the government, employers and unions lasted almost nine months but broke down last week without agreement.
Union Concerns
Unions have accused the government of favouring employers at the expense of workers' rights with rules that increase job insecurity.
Government’s Rationale
Labour Minister Maria do Rosario Ramalho told reporters Portugal has the second most rigid labour law among Organisation for Economic Co-operation and Development countries, which "has led to the current levels of low productivity, low wages and even in-work poverty" that need to be reversed.
EU statistics office Eurostat puts Portugal's labour productivity per hour worked at 80.5% of the bloc´s average, its fifth-lowest.
Political Reactions and Conditions
Far Right Sets Conditions
FAR RIGHT SETS CONDITIONS
Among the most contested measures, the reform envisions making just-cause dismissals easier, allowing companies to deny workers reinstatement in cases of illegal dismissal provided they pay compensation, and lifting limits on outsourcing.
Chega Party’s Demands
Andre Ventura, leader of far-right party Chega, said he was willing to negotiate, but demanded a reduction in the retirement age, currently 66 years and nine months, and the restoration of three days of annual leave removed in the aftermath of the country's 2011 bailout.
"These are two crucial points we will not give up on," he said, without specifying his retirement age demand.
Socialist Party Opposition
The third-largest parliamentary force, the Socialist Party, has opposed the reform, with its leader Jose Luis Carneiro saying it would "open the door to the law of the jungle" in the labour market without improving productivity.
(Reporting by Sergio Goncalves; Editing by Andrei Khalip)
