Portugal : tripartite agreement on the reform of the labor code

The agreement signed on June 25 terminates tough negotiations lasting six weeks (from April 22 to June 4 followed by bilateral meetings). Confronted with unexpected threats of the UGT   ( close to the Socialist Party in government) to break off negotiations, the government agreed to make last-minute concessions without, however, avoiding the break with the CGTP which considered that the conditions were not met to analyze in 24 hours a legal text of 33 pages. The union leadership, close to the Communist party, also criticized the proposal to merge the labor code (689 articles) and the regulations of implementation (499 articles), which deems a source of abusive interpretation. The text was thus signed by the government, employers (Confederation of Portuguese industry, Confederation of tourism, Confederation of commerce and services) and, for the unions, the Confederation of Portuguese farmers and the General workers’ union (UGT). The government of José Socrates consequently assumes a “new social compromise which should make the Portuguese labor market more flexible in a global context, while guaranteeing workers’ rights”. The five reform orientations and the main changes concern :
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the government, employers (Confederation of Portuguese industry, Confederation of tourism, Confederation of commerce and services) and, for the unions, the Confederation of Portuguese farmers and the General workers’ union (UGT). The government of José Socrates consequently assumes a “new social compromise which should make the Portuguese labor market more flexible in a global context, while guaranteeing workers’ rights”. The five reform orientations and the main changes concern :

  • Collective

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