Social partners in Portugal are continuing social dialogue, as part of which they are discussing significant changes to the labour code adopted during the period of austerity in the country, between 2011 and 2014. The socialist government would like to maintain the principles of so-called ‘flexisecurity’, while the far-left parties that are propping up the government are calling for a complete review of the labour code of 2012. Employers, for their part, are in favour of maintaining the status quo, given the improving labour market.
Negotiations are proving tough but are ongoing. The governing socialist party, which is relying on two left-wing parties to legislate in Parliament, does not want a complete review of the labour code that was introduced in 2012, during the austerity imposed by the international creditors that bailed the country out – the IMF, ECB and European Commission. The government is adopting a prudent attitude to the talks at this stage, abstaining from making concrete proposals. However, the other...
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