The labor legislation reform has once again exposed the fragilities of Social Consensus in Portugal. José Eduardo Carvalho, president of AIP, and Pedro Martins, professor at NovaSBE, participated in a panel on the topic at AIP, in Lisbon, on September 14.
AIP considers that the rejection of the labor law makes it unfeasible to increase economic competitiveness. José Eduardo Carvalho states that there are two conclusions to draw: a significant reform will always be conditioned by Article 57 of the Constitution, and that governments need a broader business social base of support, which cannot be limited to the entities represented in Social Consensus.
The president of AIP criticized the lack of a firm and mobilizing position in defending the proposals. "There was no clear and assertive business social base of support in defending the proposals. The minister was alone," he states. Carvalho also warned that 30% of Portuguese workers have been at the same company for more than 20 years, arguing that Portugal needs greater mobility in the labor market.
As for the future, José Eduardo Carvalho considers that UGT is losing influence and that he does not see the possibility of making significant agreements that contribute to economic growth. He also argues that measures cannot be restricted to Social Consensus and that it is necessary to broaden the base of support to other associations.
