New wages agreement in Portugal

The new government of Portugal aims to have signed a new wages and competitiveness agreement by July.

Prime minister António Costa, whose Socialist Party won a surprise overall majority in the elections at the end of January, set out the plans in a meeting with representatives of unions and employers last month.

Costa, who was prime minister in the coalition government before this year’s elections, first indicated his wish for an agreement along these lines in 2019. Covid-19 derailed these plans, but the proposal was included in the Socialists’ 2022 manifesto.

Success is by no means guaranteed, as the two sides are far apart.

The employers are calling for “prudence”, while the largest union confederation, the CGTP, has called for a “general increase in wages … that cannot continue to be postponed”.