Portugal's Government Faces Union Strike Over Labour Law Overhaul

Portugal's centre-right government is engaging in dialogue with unions to avoid a general strike over proposed labour law changes. These reforms aim to increase business productivity by easing dismissals and lifting outsourcing limits, but unions argue they threaten workers' rights. Talks are ongoing to resolve the issue.

Portugal's minority centre-right government expressed willingness to negotiate with unions on Thursday as they threatened a general strike next month. The planned overhaul of labour laws, designed to facilitate dismissals and increase work flexibility, has sparked tensions with union leaders.

Minister for Cabinet Affairs Antonio Leitao Amaro emphasized the government's commitment to dialogue, describing any strike as premature. He noted the administration's ongoing meetings with both unions and employers, urging a collaborative approach. However, union leaders, including UGT's Mario Mourao, demand new reform proposals reflecting their views and free from rigid preconditions.

The proposed reforms would amend over 100 labour code articles to enhance business productivity but have raised union concerns over potential infringements on workers' rights. These changes include easing just-cause dismissals for small and medium enterprises and removing outsourcing limits. Despite productivity improvements, reports indicate Portugal still trails the EU average due to structural challenges.

(With inputs from agencies.)