Valuing labour and growing the economy

Draft revision of the labour legislation "makes very rigid labour schemes more flexible" said Rosário Palma Ramalho

The Council of Ministers approved a "deep, ambitious, and modernising reform of the labour market and the labour legislation", whose draft project is presented to the social partners today, said the Minister of the Presidency António Leitão Amaro at a press conference in Lisbon.

Noting that the "Government is here to transform", Leitão Amaro claimed that this labour market reform "is indispensable to boost competitiveness", "values labour and merit", "fosters jobs, namely for youths" and collective bargaining.

The Minister of Labour, Solidarity and Social Security Rosário Palma Ramalho stressed that the motto for the draft project to reform the labour legislation "Work XXI" is "ease to value and grow"

Make more flexible and value

The Minister noted that the proposal, which the social partners will get to know firsthand in full detail, "makes very rigid labour schemes more flexible to boost the economy’s competitiveness and foster companies’ productivity".

The proposal also "values workers through merit", "fosters jobs, especially for youths and retaining talent" and "strongly stimulates collective bargaining and recruitment because the trade union and employer associations are privileged partners for a competitive, strong, and forward-looking labour scheme".

Rosário Palma Ramalho stated that the proposal "guarantees minimum services during strikes in essential sectors", services that "albeit minimum, must be effective so that while respecting the right to strike they balance out other equally fundamental interests".

Rigidity hinders growth

This draft project "comes for the assessment and diagnosis of the current system," which concluded that Portugal still "has an excessively rigid system based on a very traditional labour relations model, not open to the 21st century or work in the digital era".

"This system is a hinderance to companies’ economic competitiveness and productivity, which is a fundamental goal for the Government", and "we need to adapt more to the digital economy".

The Minister also said that with the current model "there isn’t much vibrancy in collective recruitment, namely renewing the collective conventions".

The proposal transposes the European directives on suitable minimum wages and work conditions on digital platforms; it modernises the Labour Code and revises 9 complementary bills.