CIP considers 4.8% salary uptick

Portugal’s Business Confederation (CIP) is prepared to negotiate a Social Pact with unions that could include an increase in salaries of 4.8% for employees.

The president of CIP, Armindo Monteiro has remained tight-lipped over the complete range of measures, but has stressed that the CIP is open to discussing pay packet increases of 4.8% or over if the right conditions are created.
Yesterday morning (18 September) CIP met with members of the government, including the ministers of Finances, Labour and Economy, as well as the adjunct secretary of State for the prime minister, António Mendonça Mendes for deep-dive discussions the Social Pact proposed by the CIP.
The pact rests on three pillars: growth, revenue and streamlining. The initiative was divulged by the CIP that explains that the meeting will follow a sound-out with the prime minister, António Costa who says he is open to discuss the measures.
The CIP president had first proposed the pact with unions in the first 30 days of his term, and told the business daily Negócios that the general-secretary of the UGT unions will also be at the meeting.
“If the measures were accommodated it would be possible to have a framework for a salaries increase above what is currently on the table, in other words the 4.8% proposed for 2023.
Among other proposals the CIP wants the government to consider (I.e., “The right conditions” for a more generous settlement) is a reduction in VAT to 6% on all foodstuffs, and new stimulation sweeteners on complementary voluntary social security regimes assumed by companies.
At the time, the CIP president explained that the negotiations with the CGTP had been amicably interrupted and that they were still negotiating the details with the union UGT.
Armindo Monteiro has explained that not all of the measures are to be included in the next State Budget.
The CIP initiative has come one week after the National Confederation of Employer Associations (CNAP), of which the CIP is part along with four other business confederations, had presented their joint suggestions for the next budget.