Portugal’s Workers Await Pay Rise and Labour Law Deal Amid Strike Threat

Portugal’s second-largest union and the Government spend the day face-to-face, trying to mend the rift that triggered December’s nationwide walk-out. Salaries, working-time rules and the controversial Labour XXI bill are all on the table—and neither side is ruling out a fresh strike.

Fast facts before the talks begin

• UGT wants a 4.7 % pay rise across public and private sectors.

• The union insists the minimum wage climb to €870 next year.

• Government’s Labour XXI reform keeps its core measures intact.

• Strike threats remain if today’s meeting stalls.

• Political parties from PS to Chega are lining up with conflicting red lines.

Why this matters for people earning a pay-packet in Portugal

A decade after the troika era, many workers still juggle high rents, volatile contracts and above-EU inflation. Any change to labour law affects not only monthly wages but also overtime pay, job security and tax pressure. Today’s encounter between UGT leaders and Labour Minister Maria do Rosário Palma Ramalho could decide whether households see more money in January—or more picket lines.

What each side brings to the table

The union front-loads its agenda with eight priorities: across-the-board raises, a 4-day week pilot, tougher limits on outsourcing after layoffs, restoration of pre-2011 holiday entitlements, higher redundancy payouts, an IRS neutrality clause so extra salary isn’t swallowed by tax, stronger collective-bargaining rights, and a roadmap to shore up Social Security. Government negotiators counter that flexibility, productivity and international competitiveness matter just as much. They are willing to scrap simplified layoffs for mid-sized firms but refuse to bin the entire draft.

Political pressure meters into the room

Opposition benches smell blood. The PS vows to veto any rollback of worker safeguards, Chega threatens to vote no unless parental-leave clauses shift, the PCP calls the bill “dead on arrival,” while Iniciativa Liberal brands the strike “economic sabotage” yet still wants tweaks. These divergent party lines give the union leverage: the Government needs at least one outside party to pass Labour XXI in Parliament, meaning every comma hammered out today could swing a vote tomorrow.

How the streets might react next

UGT’s secretary-general, Mário Moura, reminds members that a new general strike can be scheduled “within days.” The CGTP is on standby, citing last week’s “historic” turnout—especially in Lisbon’s transport hubs, Setúbal’s shipyards and Porto’s logistics parks. Business lobbies, for their part, warn that another stoppage during the Christmas retail peak could wipe €120 M from turnover. The clock is therefore ticking: either today ends with a joint communiqué and a calendar for clause-by-clause bargaining, or Portugal could greet 2026 with picket lines instead of fireworks.

What to watch after tonight’s handshake—or stalemate

The text of any joint minute, to see whether the bank-of-hours revival stays or goes.

Reaction of medium-sized exporters, whose margins rely on flexible overtime.

Scheduling of the promised Prime-Minister-CGTP meeting on 7 January.

Whether the Ministry tables a fresh economic-impact note to calm nervous MPs.

A possible second 24-hour strike call in early February if wage figures do not move.

Workers, employers and commuters alike should have a clearer picture by sunset—either of a compromise that nudges paycheques upward or of another round of industrial unrest looming on the winter horizon.