UGT union lays out points blocking Portugal’s new labour package

Rules for fixed-term contracts, individual time banks and dismissals are the main stumbling blocks preventing Portugal’s government from reaching an agreement with one of the country’s largest unions, General Workers Union (UGT) over its new labour package.

While the union described the prospects for bridging the gap as “reduced”, the Prime Minister, Luís Montenegro said he believed an agreement between the government and the unions could be reached and scheduled a fresh meeting with the union but warned that negotiations could not be strung out for long.

Portugal’s Minister of Employment, Welfare and Social Security, Maria do Rosário Palma Ramalho, who will no doubt reveal more at the International Club of Portugal lunch tomorrow at the Hotel Sheraton, has said that the last round of negotiations were the last but has now admitted that negotiations will continue.

After eight months of meetings, advances and setbacks, the UGT national secretariat discussed and voted on the current proposal to revise the labour law on Thursday last week, which it ultimately rejected.

“The UGT national secretariat notes the still insufficient progress in negotiations and states that the proposal, as it stands, does not yet enable reaching the consensus” that a resolution needs.

However, business associations have accused the UGT of negotiating in bad faith.

The four employers’ confederations involved in the negotiations accused the UGT (General Workers Union) of rejecting the proposed revision of Portugal’s labour legislation based on a text that, they say, no longer corresponded to the latest version negotiated between the parties.

In a joint statement, CAP (Confederation of Portuguese Workers), CCP (Confederation of Portuguese Commerce), CIP (Confederation of Portuguese Industry), and CTP (Confederation of Portuguese Workers) regretted the decision taken by the National Secretariat of the trade union confederation on the 9th and expressed “deep disappointment” at subsequent public statements made by UGT leaders.

Source: ECO Online; Credits: Government of Portugal.