LUSA 05/11/2026

Lusa - Business News - Portugal: Govt lost credibility in labour reform negotiations - opposition

Fafe, Portugal, May 10, 2023 (Lusa) – The Socialist Party (PS) Secretary-General said on Sunday that the government "lost credibility" during labour reform negotiations, saying that the "appropriate path" would be for the executive to present a proposal to parliament incorporating the agreed-upon changes.

"The government lost credibility due to the way it conducted the [negotiation] process. Now we will wait to see what the government will do," José Luís Carneiro said in Fafe, on the sidelines of the Rally of Portugal.

He believes the government must provide an answer, and the party is now awaiting its next move.

"From my point of view, the appropriate path would be for the government to take a proposal to the parliament that includes the changes on which there was an agreement," he said.

Carneiro questioned whether the government would instead present the proposal exactly as first introduced, ignoring agreed-upon matters. "That would be a less appropriate path," he said.

He said that when labour laws were amended in 2023, the Social Democrats (PSD) abstained and subsequently failed to mention labour laws during the election campaign or in their electoral programme.

"Therefore, we will now wait for what the government wants to do," he said, guaranteeing that the "PS was never available" to approve legislation aimed at "stripping rights from young people, working women, or the most vulnerable, particularly regarding the balance between family and professional life."

The former minister of internal affairs warned that the economy's "engine has seized".

"The country's economy (…) is experiencing very significant failures in fundamental engines," he said.

He continued his analysis by saying that the public investment engine is falling abruptly, while foreign investment is also dropping significantly. "National exports of goods are falling very significantly," he said.

Consequently, the PS leader stressed the need to support "the engines that today continue to ensure the country grows", specifically tourism and real estate.

"Tourism today represents more than €20 billion. This includes, notably, sporting events that protect Portugal to the world, such as the Rally of Portugal and a wide range of other sporting events taking place across the country in the coming months," he said.

JCR/RYOL // ADB. 

Lusa