The UGT national secretariat has unanimously rejected the government's latest labour reform proposal, leading to a stalemate as the Minister of Labour pushes for a conclusion by May 7th.
UGT rejects labour law reform. Minister schedules Social Concertation meeting for May 7th
Context & Explainers

- Prime Minister, Portugal: 2024 - Present
- Party: Social Democratic Party (PSD)
Luís Filipe Montenegro Cardoso de Morais Esteves (born February 16, 1973, in Porto) is a Portuguese lawyer and center‑right politician who has served as Prime Minister of Portugal since April 2, 2024. A long‑time member of the Social Democratic Party (PSD), he is the leading figure of the post‑Troika generation of Portuguese conservatives. Montenegro was elected to the Assembly of the Republic in 2002 for the Aveiro district and remained an MP for 16 years, becoming PSD parliamentary leader from 2011 to 2017 during the bailout and austerity period under Prime Minister Pedro Passos Coelho. He was a prominent defender of strict austerity measures, arguing in 2014 that “the life of the people is no better, but the life of the country is a lot better,” a phrase that has followed his public image since. After an unsuccessful leadership bid against Rui Rio in 2020, Montenegro won the PSD leadership in 2022. He then forged the centre‑right Democratic Alliance (PSD–CDS‑PP and allies), which won a plurality of seats in the 2024 legislative election. Refusing to partner with the far‑right Chega, which he has called “often xenophobic, racist, populist and excessively demagogic,” he formed a minority government as head of the XXIV Constitutional Government on April 2, 2024. His first government fell in March 2025 after a no‑confidence vote linked to a conflict‑of‑interest affair, but fresh elections saw the Democratic Alliance increase its seat share, allowing Montenegro to return as prime minister leading the XXV Constitutional Government. His importance to Portugal lies in attempting to re‑center the traditional centre‑right after the crisis years, defending liberal‑conservative economics and EU alignment while drawing a sharp line against formal cooperation with the radical right, thus shaping how Portuguese democracy manages its new multi‑party era.

The General Union of Workers (UGT – União Geral de Trabalhadores) is one of Portugal’s two main national trade union confederations. Founded in Lisbon on 28 October 1978, it was created as a social‑democratic alternative to the more communist‑aligned CGTP after the 1974 Revolution, grouping unions close to the Socialist Party and moderate centre‑right currents.
UGT represents around 400,000 workers and is affiliated to the European Trade Union Confederation and International Trade Union Confederation, giving Portuguese labour a voice at EU and global level. Its principles stress union independence from the state, employers, churches and parties, internal democracy and active worker participation.
Historically, UGT’s hallmark has been “propositive” social dialogue: it is usually more willing than CGTP to sign tripartite agreements on wages, labour law and social policy with governments and employers, shaping minimum wage increases, working‑time rules and social protection reforms. This makes UGT a key centrist actor in Portugal’s industrial relations, often mediating between left and right while defending collective bargaining and incremental improvements to labour rights.
Social Concertation (Concertação Social) is Portugal's tripartite dialogue between the government, trade unions and employer associations to negotiate labour, social and economic policies. Its agreements often shape government proposals but are not binding, so if talks fail the government can still submit the labour-law revision to Parliament and will need to secure votes there, potentially relying on support from opposition parties such as Chega.
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Other news coverage of this topic
- Government and UGT reach a stalemate on labour reform agreement • publico.pt
- A negotiation in search of the right environment • publico.pt
- What will be the Government's clean exit from the labour reform? • publico.pt
- The labour law of unintended consequences • publico.pt
- "If this labour reform had any flaw, it was not going as far as it should," says Moedas in political commentary debut • expresso.pt
- Labour law agreement • rtp.pt
- It cannot be said that there is no justification for the labour reform • cnnportugal.iol.pt
- Pedro Adão e Silva challenges the Government to show "one thing that the changes [to labour law] have that benefits workers" • cnnportugal.iol.pt
- Pedro Adão e Silva challenges the Government to show "one thing in which the changes to labour law benefit workers" • cnnportugal.iol.pt
- Ombudsman: not like this • expresso.pt
- Government issues ultimatum to pressure a unanimous UGT • observador.pt
- In current times, the flexibility of labour relations is not necessarily the central problem of the Portuguese labour market • cnnportugal.iol.pt





