Social partner involvement in the 2002 NAP

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This feature examines social partner involvement in Portugal's 2002 National Action Plan (NAP) for employment. It is one of a set of similar features for all the EU Member States, written in response to a questionnaire

This feature outlines how the main Portuguese social partner organisations were involved in drawing up Portugal's 2002 National Action Plan (NAP) on employment. Under the European employment strategy, each year the EU Member States draw up NAPs in response to the annual Employment Guidelines.

Similar features on social partner involvement in the 2002 NAPs have been drawn up by the European Industrial Relations Observatory (EIRO) national centres in all the EU Member States, in response to a questionnaire. Details on the background to this exercise, and the questionnaire used, can be found at TN0206102F. Readers are advised to refer to the questionnaire in conjunction with this feature.

The final version of the Portuguese NAP for 2002 was issued by the Ministry of Social Security and Labour (Ministério da Segurança Social e do Trabalho, MSST) in November 2002. The publication of a full report was delayed, notably by a change of government in spring 2002, when a coalition government of the centre-right Social Democrat Party (Partido Social Democrata PPD/PSD) and the right-wing People's Party (Partido Popular, CDS/PP) took office (PT0205101N).

In November 2002, at practically the same time that the Portuguese 2002 NAP was issued, the European Commission published the draft Joint Employment Report 2002, which provides an overview of the EU employment situation and an assessment of the progress made by Member States in the implementation of the European employment strategy. The Commission's report argues in favour of the social partners in Portugal playing a more active role in areas pertaining to the modernisation of work organisation, and for labour regulations to be implemented on the basis of agreements between the government and the social partners. The report sees a the need for Portugal to improve on its low levels of productivity and wages, tackle the problem of school drop-out and introduce labour legislation reforms.

Procedural aspects

The Portuguese social partners have been cooperating in the whole NAP process as part of the overall European employment strategy since its launch in 1998. As far as the NAP 2002 is concerned, this cooperation took place in both the drafting and implementation phases. The main central social partner organisations involved are: for employers, the Portuguese Agricultural Confederation (Confederação da Agricultura Portuguesa, CAP), the Portuguese Trade and Services Confederation (Confederação do Comércio e Serviços de Portugal, CCP) and the Portuguese Confederation of Industry (Confederação da Indústria Portuguesa, CIP); and for trade unions, the General Confederation of Portuguese Workers (Confederação Geral de Trabalhadores Portugueses, CGTP) and the General Workers' Union (União Geral de Trabalhadores, UGT).

In 1998, the partners signed a joint declaration in which, in addition to acknowledging the importance of the NAP and their participation in it, they undertook to negotiate agreements, at the appropriate levels, aimed at modernising the organisation of work, and also undertook to give an enhanced role to collective bargaining. In 1999, a technical group was established within the framework of the tripartite Standing Committee for Social Concertation (Comissão Permanente de Concertação Social, CPCS), which encompasses a joint national coordinating body to oversee the NAP. This is a forum for discussing national employment policy choices and how their implementation works in practice. The social partners contribute very actively to the work of this group. In terms of related negotiating initiatives, 2001 saw the conclusion of national tripartite agreements on improving working conditions and health and safety at the workplace and combating accidents at work (PT0102135F), and on employment, the labour market, education and training (PT0102134F).

CCP, CGTP and UGT consider that they were involved in drawing up the 2002 NAP, by means of direct participation in the form of commentaries and suggestions and also indirectly, through the implementation of employment and training policies. They are also of the opinion that some of their proposals have found their way into the NAP 2002, although UGT argues that the time allocated to consultation with the social partners is short, thus forfeiting thoroughness and rigour. CGTP sees some of its positions reflected in the various NAPs, in particular in the 'pillars' on 'developing entrepreneurship and job creation' and 'encouraging adaptability of businesses and their employees', with such alterations in essential areas such as job creation, combating illegal labour, closer links between education, training and employment, and social protection policies.

Matters of policy content

In the opinion of the social partners, the 2002 NAP does not differ fundamentally from that of the previous year (PT0102134F), but the modifications made affect areas important for national development (according to UGT) and the 2002 plan generally presents a more coherent structure (according to CCP). Efforts were also made in terms of the implementation of some of the measures in the tripartite agreements negotiated in 2001 (see above).

CCP is of the opinion that the NAP addresses fundamentally important issues and agrees with the priority areas, namely the promotion of adaptability and flexibility of work organisation, the boosting of the 'entrepreneurial spirit' and the need to promote greater workforce mobility. The NAP acknowledges the weaknesses of the Portuguese employment system, the low level of education/training, the problems of integrating young people into the labour market ( which, however, are not as bad as in other EU countries) and reintegrating older workers. CCP also states that the fundamental problem in Portugal is not employment, but productivity. It sees a need to continue to invest in qualification-related measures pertaining to the competitiveness of companies. The relatively small size of companies should be addressed more constructively, as at present their weak potential in terms of adaptability, innovation and sustainability, and their low turnovers, often do not allow them to recruit qualified personnel and/or promote workers’ access to training.

For CCP, the 2002 NAP has profound weaknesses, in relation to the pillars on 'developing entrepreneurship and job creation' and 'encouraging adaptability of businesses and their employees', in terms of new measures and support, due to a failure to implement announced measures. For this reason, the NAP does not warrant a favourable assessment from the service sector employers' organisation. CCP also believes that no significant developments have occurred in collective bargaining. A reduction in the taxation on non-wage labour costs is seen as essential, given the impact such a measure could have in terms of job creation;

For UGT, the NAP 2002 does not incorporate strategic alterations to the national policies included in the pillars on 'improving employability' and 'developing entrepreneurship and job creation', above all in terms of the strategy for job creation in services. A need for adjustment to the current Portuguese macroeconomic situation is also seen as manifest.

For CCP and UGT, the NAP, in its regional aspects, places little emphasis on new challenges for 2002 in comparison with the preceding year, particularly as these social partners are already involved in other strategies that go further than the NAP.

Bargaining

The 2002 Employment Guidelines promote collective bargaining and social partner action in the areas of:

• improving the quality of work and employment (in general);

• modernising work organisation (guideline 13);

• lifelong learning in the context of competence and skill development in enterprises (guideline 15);

• 'active ageing' (guideline 3);

• strengthening equal opportunities for men and women (tackling the gender pay gap, desegregating the labour market, reconciling work and family/private life etc) (guidelines 16,17 and 18); and

• social integration by way of better access to the labour market for groups and individuals at risk or at a disadvantage, such as people from ethnic minorities, migrant workers, long-term unemployed people and people with disabilities (guideline 7).

Though effective in some areas, Portuguese collective bargaining is currently regarded as being in something of a stalemate (PT0208102F). Both main trade union confederations argue that, although important questions have been discussed, the election of a new government and certain structural problems in the negotiation process has led to this impasse.

However, for 2002, all parties have undertaken to place greater importance on the collective bargaining process in terms of implementing the NAP.

According to CGTP, there have been a number of developments that coincide with the NAP's policies (and those of CGTP itself), such as campaigns and collective bargaining on: precarious employment contracts; safety, health and hygiene in the workplace; equal opportunities for men and women; vocational training; and actions aimed at reducing the abuse of fixed-term contracts. Furthermore, for CGTP, the bargaining process has produced some social progress in areas such as: reduction in working hours; increase in holidays; equal opportunities; improvement in promotion possibilities; and measures for working parents. Some advances has also been made in matters of 'job quality', and control of compliance with labour legislation. The results achieved, however, fall far short of what is generally considered necessary, states CGTP, due to the frequent reluctance on the part of enterprises and employers to negotiate. Government policies, and in particular its proposed new labour legislation (PT0210102F), which CGTP considers generally to be very negative, are seen as a destabilising element in the whole process. At the macroeconomic level, policies are also regarded as negative, in particular an increase in VAT, budget cuts and privatisations (PT0206101N).

For UGT, significant improvements have been negotiated in areas such as: flexibility of working hours; vocational training; equal opportunities and gender equality policies; and the position of older, disadvantaged and disabled workers. Attempts have also been made to implement the two tripartite agreements negotiated in 2001 on employment, education and vocational training, and on health and safety

Commentary

The Portuguese social partners were involved in drawing up the 2002 NAP, and some of the suggestions they made during the debate were reflected in new measures. The social partners also consider significant the main areas of emphasis in the NAP: flexibility in work organisation; boosting the entrepreneurial spirit; greater worker mobility; increases in both productivity and wages; and an effort to increase training and improve qualification levels. Although some advances have been made, the role of the collective bargaining process as an instrument for implementing the NAP leaves something to be desired. The in-depth discussion on labour relations currently in progress in Portugal will produce important benefits in the drafting of the 2003 NAP. (Célia Quintas and Maria Luisa Cristovam, UAL)