Proposed changes to labour laws have resulted in Portugal experiencing its first general strike in 12 years. Walkouts at millions of jobs across the country, organized by Portugal’s major trade unions, have brought the country to a standstill. Portugal’s first general strike in 12 years has sparked frustration over the government’s labour reforms. Critics claim that the reforms will ultimately weaken economic inequalities.
Portugal’s first historic strike grounded its economy
The country’s transport systems were disrupted, schools were closed, public services were fully operational, and hospitals were fully disrupted. The country’s first general strike in 12 years was a response to the government’s planned reforms to the country’s labour regulations. The trade unions describe the reforms as overly permissive to employers in dismissing workers and significantly weakening their ability to negotiate in collective bargaining.
This strike was a “clear message” sent to the government by union leaders demonstrating an unwillingness to allow for the workers to have concessions in their rights and policies. This message was wrapped in peaceful protest as major cities were filled with participants.
Portugal believes the new policies will give it a competitive advantage
Portugal believes the changes being proposed by the government to the labour market will have a modern approach in their policies and will become competitive with other peers. The government believes its work will be beneficial to the economy of the country and its employment, as there will be an influx of investment and the labour laws will become more aligned with the EU.
Costa had no choice but to recognize the breadth of the walkout and was willing to meet with the unions. He continued stating the government’s intentions of economic improvement and development with societal protection, although this statement of Costa’s was met with discontent by unions.
Portuguese unions made their voices heard
Unions have shared and outlined their major concerns about the documentation, which consist of the following:
- Eased rules about contract termination have been introduced,
- limited scope and impact of collective agreements,
- decrease in overtime and night shift pay,
- eased rules for flexible work.
The walkout and strike have raised socio-economic tensions in Portugal due to unusually high economic growth, but equally high economic inequalities. The relatively young and economically vulnerable populations are the most discontent, due to high levels of fragile employment, stagnant wage levels, and inflation. The discontent is predominantly fuelled by exceedingly high housing costs.
Some economic analysts have recently grown concerned that an extended strike by workers could result in lost economic productivity and erosion of investor trust due to supply chain disruptions and order fulfillment delays. However, unions claim that any short-term economic losses in healthy labor relations are acceptable if they protect the workers’ rights to fair negotiations in the employment relationship.
The government may need to change its tactics to avoid major social disruption
This general strike has had a considerable impact on Portugal’s labor relations by demonstrating the unions’ newly acquired strength and the public’s ability to resist unpopular reforms. It has also demonstrated the need for the government to change its tactics due to the significant social disruption and organized labor’s ability to mobilize millions.
This situation has also created a situation that many observers think will have an impact on the rest of the European Union, as this union also has growing frustration over the lack of reformed social legislation to protect the workforce. Portugal could also be seen as a model for the rest of the Union in meeting the social needs of its workforce while modernizing the economy.
The nationwide protest or walkout by the workforce of Portugal has amply demonstrated the unity, strength, and depth of opposition to the government’s proposed changes in labor legislation. It has also demonstrated the strength of united forces in opposition to government legislation in today’s modern Portugal.
The government has also demonstrated, by its commitment to reforming labor relations, that it intends, by these reforms, to push forward a modern restructuring of the economy for the workforce. The unions have also demonstrated that, with the walkout, they intend to respond by restructuring the civil and industrial relations legislation, which will ultimately lead to confrontation.
