Portugal Parliament Blocks Labour Reform, Marking Major Blow to Government
Parliamentary Rejection of Labour Reform and Its Implications
Government's Labour Reform Proposal and Objectives
LISBON, June 19 (Reuters) - Portugal's centre-right government suffered its heaviest blow since returning to power last May when parliament rejected its labour reform proposal on Friday, with the far-right Chega and the centre-left Socialist Party joining forces to block it.
The government had proposed changes to more than 100 articles of the labour code aimed at boosting productivity and economic growth, but unions argue the overhaul favours employers at the expense of workers' rights and have staged two general strikes in the past six months.
Parliamentary Vote Breakdown
Only the 91 lawmakers from the ruling coalition and nine members of the Liberal Initiative party backed the bill, with the rest of the 230-seat chamber voting against, including Chega's 60 lawmakers and the Socialist Party's 58. The rejection provoked heavy applause from the galleries.
Key Labour Reform Measures
The reform aimed to make just-cause dismissals easier, allow companies to avoid reinstating workers in cases of unlawful dismissal by paying compensation, and lift limits on outsourcing.
Political Negotiations and Unresolved Issues
Chega's Retirement Age Proposal
Chega leader Andre Ventura and Prime Minister Luís Montenegro had been negotiating until the last minute but failed to reach an agreement. Chega had been pushing for a gradual reduction in Portugal’s retirement age, aiming to bring it down from the current 66 years and 9 months to 65 — a proposal the government flatly rejected.
Reporting and Editorial Credits
(Reporting by Sergio Goncalves; editing by Andrei Khalip)
