This edition of Contraponto examines the ongoing negotiations surrounding the government's labour package and analyzes the impact of the Middle East conflict on European energy prices.

The Minister of Labour reconvenes with the UGT and business confederations to resume labour law reform negotiations following an appeal from the President of the Republic to resolve the recent impasse.

The CGTP trade union federation plans to attend a government meeting on labour law reforms despite not receiving an invitation, asserting its constitutional right to participate in the legislative process.

The European Investment Bank (EIB) Group increased its lending to Portugal by 43% in 2025, reaching three billion euros. EIB President Nadia Calviño and Finance Minister (Ministro das Finanças) Joaquim Miranda Sarmento announced that 1.5 billion euros is specifically earmarked for social and affordable housing. Other major investments include nearly one billion euros for the high-speed rail project between Porto and Lisbon. Those seeking affordable housing should note that these funds aim to increase supply across the country quickly.

Following a breakdown in talks over labour law reforms, the UGT and employer confederations have agreed to resume negotiations after an appeal from the President of the Republic, despite mutual accusations of intransigence.

A total of 11,000 companies have applied for exemption from the Single Social Tax (TSU), amounting to an estimated 200 million euros in total.

More than a hundred people demonstrated in downtown Lisbon, organized by CGTP, to demand gender equality and oppose a labor package perceived to worsen women's working conditions. The protest featured slogans advocating for equal pay and rights, with participants highlighting ongoing disparities in the workplace. CGTP leaders emphasized the need for legislative changes to uphold constitutional rights for women, especially in light of the upcoming International Women's Day.

The Ministry of Labour is currently negotiating with employers and unions to find an alternative to the turnover tax aimed at combating labour precariousness. This tax has not been implemented due to regulatory issues. An official from the Ministry confirmed that discussions are ongoing to address this matter.

Luís Montenegro's refusal to grant full lay-off payments to 4,233 workers affected by storms is framed as a matter of 'relative justice', emphasizing fairness to other citizens and sectors. This stance contrasts sharply with the record profits of banks and energy companies, raising concerns about the equity of wealth distribution in Portugal. The significant profits of these corporations, juxtaposed with the financial struggles of workers, highlight the disparities in the fiscal system, which favors corporate profits over salaries. Proposed labor law changes may worsen these inequalities, suggesting that true social justice requires more than just economic growth—it necessitates a fairer distribution of wealth.

The Government has actively engaged in revising labour law, presenting a draft bill on 24 July and reconvening the Permanent Commission for Social Dialogue in September. Following several meetings with business confederations and the UGT, a significant meeting is scheduled for 3 March to further discuss the labour law reform, indicating ongoing negotiations and collaboration among stakeholders.

Thousands of demonstrators took to the streets in Lisbon and Porto to protest against the government's proposed changes to the labour law, known as the 'Work XXI' reform. Led by the CGTP union, the protests highlighted concerns that the reforms would negatively impact workers' rights. CGTP's Secretary-General, Tiago Oliveira, called for the government to withdraw the labour package, emphasizing its detrimental effects on the workforce.

A recent meeting involving the Minister of Labour, employers, and the UGT has concluded with some progress in certain areas, despite a lack of full agreement among partners regarding labour law reforms. The discussions highlighted ongoing challenges in reaching a consensus on key policies affecting workers' rights and the expat community.

The Labour Package represents a regression to 19th-century laws, raising concerns about its implications for modern policy and rights.

A recent circular from the Tax and Customs Authority clarifies that temporary workers impact companies' eligibility for a tax incentive aimed at salary enhancement, despite not being able to benefit from the incentive themselves. This follows changes in the State Budget for 2025.

The revision of the Labour Code is viewed as an unforced error, raising concerns about its implications for workers' rights and policy effectiveness.

The issue of fake recibos verdes is a critical concern that transcends political ideologies, emphasizing the need for labor justice. Addressing this problem is essential for ensuring fair labor practices and protecting workers' rights.

Labour Minister Maria do Rosário Palma Ramalho has explained the exclusion of the CGTP from recent discussions on new labour legislation, claiming they chose not to negotiate. The CGTP refutes this, asserting they have proposed measures to address workers' rights and precarious employment. They criticize the government's approach, suggesting it favors employers and undermines social dialogue. Key proposals from the CGTP include reducing the workweek, increasing vacation days, and improving job security for vulnerable workers.

The article critiques the Government's Labour Package, titled Work XXI, arguing it regresses rather than innovates in the realm of work. It emphasizes the need for the Labour Code to adapt to the increasing frequency of extreme weather phenomena, advocating for provisions that protect outdoor workers and clarify absence policies during public calamities. The author calls for a Labour Code that prioritizes safety and preparedness for the challenges of the 21st century, rather than the outdated framework proposed by the Government.

The government has promised to provide 100% of gross salaries for laid-off workers and cover 80% of costs for companies, but this commitment lacks legislative backing and clarity on implementation.

The Government plans to submit a proposal for revising the labour law to Parliament despite lacking an agreement in the Social Concertation. This move raises questions about whether Chega will play a crucial role in facilitating the reform of the Labour Code, as the Government seeks support from opposition parties without an absolute majority.

The new labour law in Portugal is expected to influence salary improvements, but it may not be the sole factor determining salary increases. In a recent podcast, the president of the Confederation of Commerce and Services of Portugal expressed that the government's expectations regarding the law's impact might have been overly optimistic.

Autoeuropa workers have approved a new labour agreement that will remain in effect until June 2027. The agreement includes salary increases of 2.8% this month and an additional 2.5% next October, along with enhanced social benefits and attendance bonuses.

The CGTP trade union centre has called for the withdrawal of the proposed labour package, citing widespread dissatisfaction among workers as demonstrated by a recent general strike. Despite the pushback, Seguro has indicated that he will not implement the changes in their current form.

The upcoming presidential election on February 8 presents significant challenges for the elected candidate, including addressing the impacts of climate change, such as severe storms, and making critical decisions regarding labor law reforms.