Labor measures may worsen labor market conditions

“Employers continue with their low-wage policy and inequalities are greater the higher the level of education and qualifications of workers.” This criticism is made by economist Eugénio Rosa in his most recent study, where he also states that the Government’s programme “does not contain concrete measures to change the situation and is an obstacle to attracting and retaining the most qualified workers and to the country’s development.”

Based on data from the Ministry of Labor, the economist says that between 2013 and 2023, the average base hourly pay increased by 1.69 euros, from 5.19 to 6.88 euros, "according to data from the personnel tables themselves, which are sent mandatorily every year by companies to the Ministry of Labor and then published by this Ministry".

Eugénio Rosa also points out that the increases in average and median wages and earnings of workers between 2013 and 2023, both in euros and in percentage terms, were, in general, higher for those with 'less than the 1st cycle of basic education' and with 'basic education' than for workers with 'secondary and post-secondary education' and 'higher education'. And the economist has no doubt that Luís Montenegro's new government programme «could make the situation even worse».

In the area of ​​the Ministry of Labor, he says, there is a set of measures to review labor legislation that, if implemented, "will worsen the conditions of workers and women, as they continue to be the weaker party in the employment relationship as has been shown, will naturally suffer more."

Among the measures, he highlights greater flexibility in employment regimes, "which should be understood, in addition to what is mentioned, which is why the term 'namely' is used, also greater ease in dismissing employees, making it easier and cheaper".

The economist also adds the point of 'reviewing the social protection system in the event of unemployment, in order to make it fairer and more transparent, encouraging re-entry into the job market', which means 'greater difficulties in obtaining and maintaining unemployment benefits, and reducing the time with entitlement to them, which will worsen poverty'. With regard to 'balancing the exercise of the right to strike in a more appropriate way', present in the Government's programme, Eugénio Rosa considers that it will 'create more difficulties in exercising the right to strike in various sectors, aiming to weaken the position of workers and their unions and make it more difficult for them to fight for better wages and better working conditions'.

Other measures

In addition to these measures, the Government also intends to increase the minimum wage to 1,100 euros in 2029, pay holiday and Christmas bonuses in twelfths, acquire additional holiday days, reduce working hours with a proportional reduction in salary, provide a new work incentive and extend parental leave. Regarding the strike law – the most controversial measure – there has been a lot of criticism.

Regarding the measure of additional vacation days, which has been heavily criticized, Armindo Monteiro, president of CIP, defended to our newspaper: «Regarding the criticism, I see this as more than just ignorance or distrust. It is a measure that is applied by the worker and that the company naturally has to agree to. And what is it for? To allow the worker to have more vacation days, in other words, it is a right that is made available to the worker in exchange for a loss of pay. If the company does not accept it, it cannot be taken away. So what is the controversy? I do not understand these reactions. It seems absolutely sad to me».

Regarding strikes, the former Minister of Labor, José António Vieira da Silva, has already said that "a change in such a sensitive area as this can only be justified if there are significant obstacles to the implementation of this measure. And we can ask: are there significant obstacles to the country's development due to strikes? Compared to international data, we are far from being one of the countries in Europe with the highest incidence of strikes", he argued.

The CGTP defended in a statement that "changes to labour legislation, under the aegis of 'simplification and debureaucratisation', are aimed at further conditioning the exercise of the constitutional right to strike and responding to employer initiatives". This idea is in line with the UGT. Sérgio Monte, Deputy Secretary-General of UGT Portugal, warned of the risk of unilateral measures, such as the change to the strike law, which he considers a "red line".