Government urges trade union to make a decision on labour reform: “We hope it will be a positive one”

  • ECO News
  • 22 April 2026

Labour Minister announced that the legal framework for vocational training will be reviewed before the end of the year and that the Wage Transparency Directive will be transposed.

Portugal’s Labour Minister has urged the UGT union to approve a proposed labour reform agreement, saying the government expects a positive outcome ahead of a vote by the highest executive body of that trade union confederation. The decision matters for investors and businesses as it will shape labour market flexibility and wage dynamics in Portugal.

Speaking in parliament, Labour Minister Maria do Rosário Palma Ramalho said the government still has “solid expectations of reaching this agreement”, adding that “there are all the conditions to reach a deal”.

She emphasised that negotiations had already produced significant convergence, noting that more than 130 provisions had been agreed and over 30 proposals from the UGT incorporated.

The minister also highlighted that employers’ associations had already given a preliminary green light, reinforcing the government’s view that the reform is close to consensus.

At the same time, Maria do Rosário Palma Ramalho acknowledged that some issues remain unresolved, including working time arrangements and outsourcing rules. Still, she stressed that the UGT had been “always a partner willing to negotiate”, underpinning expectations that the union’s decision would be favourable.

The reform is part of a broader effort to align Portugal’s labour market with European standards and support productivity and wage growth. If no agreement is reached, the government has said it will move forward with the legislation in parliament, maintaining pressure to deliver changes regardless of union backing.