Since 2008 there has been a steady decline in the number of collective agreements concluded in Portugal. Reasons for the decline include stalling of negotiations, the economic crisis, new Labour Code rules and mandatory wage freezes.
The basic working week in Portugal’s public sector was increased from 35 to 40 hours by Law No. 68/2013 (in Portuguese, 945 KB PDF) [1] as part of the government’s austerity measures to cut costs in the sector. The law came into force on 28 September 2013. At the beginning of September, however, a
At a conference on 4 November 2013 in Lisbon, attended by government and social partner representatives, the International Labour Organization (ILO [1]) presented an overview of Portugal’s labour market in a report, Tackling the jobs crisis in Portugal (1.9 MB PDF) [2]. It analyses the impact of the
For the fourth time since the bail-out of Portugal by the Troika, the country’s Constitutional Court [1] has rejected austerity measures proposed by the centre-right Government of Portugal [2]. [1] http://www.tribunalconstitucional.pt/tc/home.html [2] http://www.portugal.gov.pt/en.aspx
For the third time since Portugal was bailed out by the Troika – the International Monetary Fund (IMF [1]), the European Commission (EC [2]) and the European Central Bank (ECB [3]) – a government austerity bill has been rejected by the country’s Constitutional Court [4]. [1] http://www.imf.org
On 5 April 2013, the Portuguese Constitutional Court ruled that four austerity measures in the 2013 state budget (*PT1301019I* [1]) were unlawful and in breach of the country’s constitution. The ruling meant the government would lose about €1.4 billion of predicted revenue. The measures in question
The critical economic situation in Portugal in 2012 led to a decline in GDP of 3.2%, according to Eurostat [1] figures. This was a major obstacle for collective bargaining, and particularly for wage increases, limiting employers’ margin for negotiation. [1] http://epp.eurostat.ec.europa.eu/portal
On 27 November 2012, the Portuguese parliament gave final approval to the state budget proposed by the centre-right government of the Social Democratic Party (PSD [1]) and the People’s Party (CDS-PP [2]). The budget would mean the biggest tax increases in Portugal in modern history. [1] http://www
Between 2003 and 2009 significant changes were introduced in labour legislation in Portugal which resulted in a weakening of some of the strict employment protection policies.