Published by Global Banking & Finance Review®
Posted on December 17, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GooglePortugal plans to amend labour reform laws after a general strike, aiming to balance productivity with workers' rights.
By Sergio Goncalves
LISBON, Dec 17 (Reuters) - Portugal's centre-right minority government has said it will amend labour reform legislation to appease trade unions following the country's first general strike in more than a decade.
The proposed overhaul of over 100 articles of the labour code is an important part of the government's agenda to boost productivity and economic growth. Unions say it favours employers at the expense of workers' rights and last week called the first general strike since June 2013.
After meeting the leadership of umbrella union UGT, Labour Minister Maria do Rosario Ramalho said the government was ready to reach a compromise.
"It was a very constructive meeting. This is not about backing down, but about bringing positions closer together in a negotiation," she told reporters late on Tuesday.
Ramalho said UGT would also put forward proposals to seek a middle ground.
UGT Secretary-General Mario Mourao said the meeting left him optimistic about the government's willingness to negotiate and called it a positive restart towards an agreement.
The labour reforms envision easing just-cause dismissals in small- and medium-sized businesses and lifting limits on outsourcing. Other measures include capping flexible-work rights for breastfeeding mothers at two years.
PRODUCTIVITY LOWER THAN IN MANY OTHER EU STATES
Eurostat data show Portugal's productivity per hour worked at 80.5% of the EU average, the fifth-lowest in the 27-nation bloc.
The Organisation for Economic Co-operation and Development (OECD) has said Portugal's rigid labour rules protect permanent jobs but limit flexibility, pushing younger skilled workers into precarious contracts, in an economy dominated by small firms with weak management and low levels of innovation.
The bill is being discussed between business confederations and unions, a mandatory step before it is submitted to parliament. Far-right Chega, the largest opposition party, has said it could withdraw support for the bill if it is not amended, despite earlier backing it.
(Reporting by Sergio Goncalves, Editing by Timothy Heritage)
Labour reform refers to changes in laws and regulations governing employment, aimed at improving working conditions, productivity, and economic growth.
Trade unions are organizations formed by workers to protect their rights and interests, negotiate wages, and improve working conditions.
Productivity measures the efficiency of production, typically calculated as the ratio of outputs to inputs in the production process.
Economic growth is the increase in the production of goods and services in an economy over a period, often measured by GDP.
Workers' rights are legal and human rights that protect individuals in the workplace, including fair wages, safe working conditions, and the right to organize.
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