Thousands Protest Portugal's Trabalho XXI Labor Package as Presidential Veto Looms

The Portuguese government's proposed "Trabalho XXI" labor reform package faced significant public opposition as thousands marched through Lisbon and Porto on February 28, demanding the withdrawal of legislation that could reshape employment protections for millions. The mobilization, organized by the CGTP union confederation, marks the latest escalation in an ongoing battle over workplace rights that already triggered the nation's first general strike in 12 years.

Why This Matters:

• Over 100 proposed changes to the Labor Code have sparked union concerns about easier dismissals, expanded temporary contracts, and potential weakening of collective bargaining rights.

• President António José Seguro has signaled a likely veto of the legislation if it reaches his desk in its current form, citing lack of social consensus and absence of electoral mandate.

• A crucial Social Concertation plenary session is scheduled for early March, which could determine whether the government retreats or continues negotiations on its reform agenda.

• The outcome will directly affect Portugal's 5 million active workers, influencing job security, wage negotiations, and retirement prospects for current and future generations.

Street Demonstrations and Union Response

The coordinated demonstrations unfolded simultaneously across Portugal's two largest cities. In Porto, protesters marched from Praça da República to Avenida dos Aliados, while in Lisbon, the route stretched from Cais do Sodré to Rossio, with participants chanting slogans like "One more push and the package falls" and "Public services belong to everyone, private profit to a few."

Filipe Pereira, a union leader with the Porto Union Federation, told journalists: "If this labor package is approved and moves forward, their lives will become even more difficult than they already are." He emphasized that the mobilization followed the delivery of over 190,000 signatures to Prime Minister Luís Montenegro on January 13, opposing the reform.

The CGTP general secretary, Tiago Oliveira, addressed the Lisbon demonstration, stating that the labor package would be "negative for the world of work and workers." He noted that the Montenegro administration (PSD-CDS coalition) includes legislative partners in Chega and the Liberal Initiative parties, positioning the government to advance the proposed reforms.

What Workers Say About the Proposed Changes

The proposed "Trabalho XXI" legislation, presented by the government in July 2025, contains numerous modifications unions warn could alter employment relationships. Workers have expressed concerns about several measures:

Dismissal procedures: Unions argue that simplified dismissal grounds could harm job security. Elsa Arruda, a 59-year-old employee of the Loures Municipal Council, captured workers' concerns: "It doesn't make sense that someone can be fired just like that and only find out later whether there was a valid reason or not."

Temporary and precarious contracts: Unions have rejected provisions they warn could expand temporary contract use, deepening employment instability for young workers already struggling with housing costs and low wages.

Individual work-hour banking: Unions contend this could allow employers to impose flexible scheduling in individual contracts rather than through collective agreements, potentially weakening union bargaining power and complicating workers' ability to plan family and personal time.

Outsourcing restrictions: Critics argue that lifting current prohibitions could allow employers to replace dismissed workers with subcontracted workers on inferior terms.

Union organizing and collective bargaining: Unions warn that several provisions could weaken sector-wide agreements in favor of individual negotiations, potentially reducing the labor movement's institutional strength.

The Human Cost

The demonstrations drew participants spanning generations, from students entering the job market to pensioners concerned about their children and grandchildren. Natália Moreira, 75, joined the Lisbon march despite being retired. "I have young children too, and the problem is quite serious, especially for people earning the national minimum wage. How can you live in this country with the cost of living as it is?" she asked, noting the need to fight for "conditions that workers once had and have gradually lost."

Carina Silva, a young hospitality sector employee, expressed concern about government inflexibility: "The Government is intransigent and won't back down. That's why we're here today, to achieve better working conditions."

Cátia Nunes, 43, who works in local administration, described her concerns: "This represents a social regression of workers' rights. If there's going to be a labor reform, it should benefit workers."

Albino Morais highlighted generational concerns: "Young workers will be especially harmed. Among the more than 100 articles, there isn't one that benefits young people or workers currently active."

Presidential Intervention and Political Dynamics

The political landscape shifted when President António José Seguro indicated he would veto the legislation if Parliament approves it without substantial modifications. Seguro cited two constitutional principles: the reforms were not part of the electoral platforms of the governing parties, and they lack agreement with social partners, particularly unions.

The president emphasized that "consensus from social partners is fundamental in modern societies" to ensure stability. His stance gained significance after the December general strike, which unions reported drew participation from over 3 million workers—demonstrating substantial public opposition.

During the Lisbon march, Bloco de Esquerda leader José Manuel Pureza called on Seguro to "be firm in combating this labor package, because it contradicts fundamental constitutional rights."

The Communist Party (PCP) general secretary Paulo Raimundo stated: "This package will fall. Everything in the labor package serves to accentuate the difficult lives of all these people."

Livre party deputy Jorge Pinto questioned the government's rationale: "Why is the Government presenting this labor package? What requires more than 100 proposed changes, all of them harming our workers?"

Government Position and Ongoing Negotiations

The Montenegro administration has defended the reform as essential for economic competitiveness. The Portuguese business confederations have applauded the reform, viewing the changes as necessary modernization of labor regulations.

Labor Minister Maria do Rosário Palma Ramalho has engaged in negotiations with social partners through the Social Concertation process. A February 18 meeting with employer confederations and the UGT union reportedly identified "some areas of reconciliation" on technical matters including parental leave and artificial intelligence. However, fundamental disagreements remain on dismissal procedures, contract flexibility, and union rights.

The government has made minor concessions in revised proposals but maintains the core elements of the announced changes. The Social Concertation plenary scheduled for early March will be critical in determining whether compromise is possible or if the conflict advances to Parliament and potentially presidential review.

Next Steps and Escalation Concerns

Union leaders have indicated willingness to continue mobilization efforts. Filipe Pereira noted that "a new general strike is never off the table" if negotiations fail to address core concerns.

The March Social Concertation plenary will reveal whether progress on technical issues can translate into substantive compromise, or whether fundamental divisions remain. If negotiations collapse and the government submits legislation to Parliament, it will test the coalition's legislative discipline and the willingness of coalition partners to provide support.

Should Parliament approve the package despite continued opposition, President Seguro's indicated veto would force either substantial revision or a constitutional challenge. The government could attempt to override a presidential veto, but the political cost would be substantial given the demonstrated public opposition.

For Portugal's workers, the coming weeks will determine how—or whether—employment protections built over decades are modified. The outcome will influence not just legal frameworks but the daily reality of job security, wage negotiations, and work-life balance for millions of workers.