Union Boycott Delays Portugal’s Biggest Labour Overhaul

The Portugal Ministry of Labour, Solidarity and Social Security tried to restart talks on its sweeping “Trabalho XXI” labour-law overhaul this week—yet the chairs reserved for unions stayed empty, delaying any final text and prolonging uncertainty for companies and workers alike.

Why This Matters

• No union sign-off means no fast-track: without the UGT or CGTP at the table, Parliament is unlikely to rush a vote, stretching the timeline for any new rules into late spring.

• Biggest rewrite in 15 years: more than 100 articles of the Labour Code could change, touching everything from parental leave to dismissal rules.

• Household budgets at stake: the return of an individual working-time bank could lift monthly pay for overtime-hungry staff—but also lengthen working days to 10 hours.

• Possible new strike wave: the CGTP hints at further industrial action if the Government sidelines it again, so commuters and public-service users should keep contingency plans.

An Empty Room in Lisbon: How We Got Here

The meeting scheduled for 18 February at the Ministry’s headquarters on Rua Martens Ferrão was meant to gather all social-concertation partners. In practice, only the four employer confederations—CIP, CCP, CAP and CTP—showed up. The UGT had already warned it could not attend that date, calling the invitation “extemporaneous,” while the CGTP was never summoned. Without organised labour present, the minister, Maria do Rosário Palma Ramalho, opted for an informal exchange with business leaders rather than a formal negotiating round.

The Contested Measures at a Glance

Working-time Flexibility: revival of the individual time-bank, letting firms add up to 2 extra hours per day if a worker agrees.

Fixed-term Contracts: extension to 3 years (certain) or 5 years (uncertain) and broader grounds for use—including long-term unemployed and pensioners.

Parental Leave Split: up to 6 months at full pay if both parents share it evenly, paired with stricter medical proof for breastfeeding rights.

Easier Outsourcing & Dismissals: removal of the 12-month cooling-off ban on subcontracting after layoffs; larger firms could refuse reinstatement in some illegal-dismissal cases.

Wider Minimum Services During Strikes: Government would gain power to impose mandatory staffing on more sectors, a move unions brand a “muzzle on the right to strike.”

Employers Cheer, Unions Bristle

Employer groups say the package restores “predictability and competitiveness”, pointing to slower productivity growth in Portugal versus euro-area peers. They nonetheless push for simpler collective-dismissal rules and tax incentives for remote work costs. Unions, by contrast, warn of “permanent precariousness”, arguing that longer fixed-term contracts and outsourcing loopholes shift risk onto workers and depress wages—already around €1 110 median per month, roughly the rent for a one-bed in Lisbon’s outskirts.

What This Means for Residents

• Employees: If the individual time-bank passes, you may negotiate longer days in exchange for cash or extra leave; refusal will still be possible, but pressure could rise in smaller firms.• Parents: A longer, better-paid shared leave is attractive, yet tighter rules on breastfeeding breaks and possible night-shift obligations for carers could offset gains.• Commuters & Clients: Expanded minimum services could keep transport running during strikes, but expect partial outages as unions test the limits in court.• Future Job Seekers: More generous fixed-term limits mean easier entry into the market—but potentially slower conversion to permanent status.

Timeline: What Happens Next?

• 23 February – New “full-house” meeting pencilled in; UGT already confirmed attendance.

• Early March – Government aims to submit the revised draft to Concertação Social for opinion.

• Late April – Target date to file the bill in Assembleia da República; a simple majority is enough, but minority Governments often seek at least tacit union blessing.

• Before Summer – Possible Constitutional Court review if opposition parties or President flag rights concerns.

Expert View: Flexibility vs. Stability

Labour-law scholar Inês Pereira notes that several EU states—Greece, Denmark, Germany—have moved toward longer daily caps (up to 13 hours) or compulsory hour-tracking, yet offset these with stronger rest-period enforcement. Portugal’s draft lacks clear sanctions for excessive daily stretch, “so the risk is real overtime without real pay,” she warns.

How We Compare With Our EU Neighbours

While the eurozone logged a 0.7 % productivity jump last year, Portugal saw a 10.7 % drop in agriculture and only modest gains in services. Advocates of Trabalho XXI argue that flexible hours + digital labour rules could close that gap. Critics counter that most high-performing economies pair flexibility with robust social bargaining—exactly what they say is missing if the CGTP remains sidelined.

The Bottom Line for Your Paycheque

Nothing changes tonight. But if the Ministry and unions finally converge, your work schedule, dismissal rights, parental leave and strike protections could all look different by the autumn. Keep an eye on 23 February: whether that room is full—or half empty again—will signal how soon you need to study a new employment contract.