Government meets UGT and employers on labour reform

Monday, 23 February 2026AI summary

📍 Lisbon 💼 Work 🏛️ Government #labour-law #government-policy #expat-rights #job-creation

Government meets UGT and employers on labour reform — Photo: Diário de Notícias

The Minister of Labour will meet UGT and four employer confederations at the Ministry of Labour, Solidarity and Social Security (Ministério do Trabalho, Solidariedade e Segurança Social) at 9:30 on Monday the 23rd to discuss proposed changes to labour law and to review technical talks held under the Social Concertation process. CGTP was not invited to the meeting, according to reporting. Workers, employers and union members should follow the talks for possible changes affecting contracts, collective bargaining and employment rules.

Update: Employers call revision 'balanced', urge dialogue

Armindo Monteiro, president of the Confederação Empresarial de Portugal (CIP), told media the government's draft is “balanced” and does not justify “all this conflict,” calling instead for continued talks between unions and employers and warning that taking the proposal to the Assembly without prior agreement risks politicising the process ahead of elections.

Context & Explainers

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.

The Ministry of Labour, Solidarity and Social Security (Ministério do Trabalho, Solidariedade e Segurança Social) is the Portuguese government department responsible for labour policy, social welfare and pensions. It sets and enforces labour rules, negotiates with unions and employers, and is where the meeting on Monday the 23rd at 9:30 AM with UGT and employer confederations will take place, so workers and employers should note any changes discussed there.

The CGTP study is a report published by the General Confederation of Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses), Portugal's largest trade-union centre. Such studies typically analyse pay, working conditions and public-sector cuts and are used by unions to justify strike actions and policy demands.

Parental leave (licença parental) in Portugal includes paid leave around childbirth that can be shared between parents plus a separate paternity quota, with eligibility usually tied to social‑security contributions or residency. Payments and administration go through Social Security (Segurança Social), so expat parents should check their contribution record, employment contract and register with Segurança Social to claim benefits and confirm exact leave length and pay rates.

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.

The General Confederation of the Portuguese Workers (CGTP – Confederação Geral dos Trabalhadores Portugueses) is Portugal’s largest trade-union confederation, grouping most unions in manufacturing, public services and many other sectors.

Founded clandestinely in 1970 as “Intersindical” under the dictatorship, it emerged publicly after the 1974 Carnation Revolution and was legalised in 1975. It has been central to virtually all major labour struggles since then, from defending collective bargaining and the 40‑hour week to leading general strikes against austerity and labour‑law rollbacks.

CGTP is historically close to the Portuguese Communist Party and has a class‑struggle, anti‑neoliberal profile, strongly critical of EU and government policies seen as undermining workers’ rights. It favours grassroots mobilisation and strikes over compromise, often refusing national social‑pact deals that the more centrist UGT is willing to sign.

In today’s Portugal, CGTP remains a key actor in wage bargaining, labour‑law debates and national protests; together with UGT it called the first joint general strike in years in December 2025, signalling its continuing capacity to organise mass action.

Armindo Monteiro is the president of CIP - Confederação Empresarial de Portugal (Confederation of Portuguese Business). He said on Monday that the government's proposed labour-law revision is "balanced" and called for dialogue between employers' and workers' representatives, a position that matters because CIP represents major employers and can shape labour negotiations affecting companies and workers in Portugal.

Segurança Social is Portugal's public Social Security system (Segurança Social), which administers pensions, unemployment benefits, sickness pay, family allowances and other social supports. Many services are handled online via Segurança Social Direta; according to the story, standard applications have a five-day response window and companies or self‑employed people have 30 days to request certain measures, so residents should use their NISS and Citizen Card login and keep digital records.

The Ministry of Labour (Ministério do Trabalho) is the government department responsible for employment policy, labour law, collective bargaining and workplace inspections. It organises talks between employers and unions and can convene negotiations or propose changes to labour rules, so its meetings affect workers and employers directly.

A banked hours scheme (commonly called banco de horas in Portuguese) lets employees store overtime or unused hours and use them later as paid time off instead of receiving immediate extra pay. The CGTP (Confederação Geral dos Trabalhadores Portugueses) proposal in its labour-review document would extend flexible working and the option to bank hours to parents with children up to 16, giving them more ability to adjust work time around family needs while hours are formally tracked.