LUSA 04/17/2026

Lusa - Business News - Portugal: Govt, unions, employers back to negotiating table on draft labour law

Lisbon, April 16, 2026 (Lusa) - Draft labour law changes return to tripartite talks between the government, unions and employers on Thursday as the partners await meetings with Portugal’s president, Antonio Jose Seguro, as the government says it is “sensitive” to his schedule.

The labour minister, Rosário Palma Ramalho, considered it appropriate for the negotiation process to move to the tripartite talks. This follows several months when the government met with the General Workers' Union (UGT) and business confederations. The government sidelined the General Confederation of the Portuguese Workers (CGTP) after the trade union asked to withdraw its proposal.

The minister reiterated the discussion "will not go on forever" and the process is "in the final stretch." She said the government remains "sensitive" to the schedule of the presidency, who said on Friday he would meet all partners soon, though meeting dates remain unknown.

This meeting happens nearly a week after UGT rejected the written proposal delivered in late March, despite the government explaining verbal concessions made at a 6 April meeting.

Employers issued a joint statement on Sunday saying the union ignored consensus and adopted a stance that compromised trust and good faith.

The UGT secretary-general responded on Monday. He said he would only take "written and concrete proposals" to the union national secretariat.

The labour minister said on Monday that the trade union has the latest version and “presented two proposals for government review.”

In the documents, UGT acknowledges applying a flexible working hours system by agreement within companies, but only through collective bargaining. This excludes parents with young children and requires a 50% increase in pay in the event of a credit balance in the worker’s favour, according to reports by ECO and Observador newspapers.

The union also wants a continuous working day (a shift with only a short break) as a right for workers with children under eight or those with disabilities or chronic illnesses. For workers with children aged nine to 12, the union said the regime could apply if "collective agreements or employers agreed."

Several measures have prevented an agreement, including the return of individual flexible working hours and the possibility of not reinstating workers after unfair dismissal. Other issues include extending fixed-term and unfixed-term contract durations and revoking outsourcing restrictions (hiring external labour).

This week, Palma Ramalho questioned the demonisation of these measures. She did not say if Thursday’s meeting would be the last, saying the government would decide.

The CGTP said the government systematically excluded it from negotiations, and it had not received the latest proposal.

 

JMF/LYT // AYLS

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