Portugal’s parliament poised to approve labour reform after Chega softens opposition

Parliamentary showdown

The Portuguese parliament held a heated debate on 18 June over the government’s labour law reform, with the PSD/CDS-PP minority government insisting it has the votes to pass the bill in a general-approval vote scheduled for 19 June. PSD parliamentary group leader Hugo Soares declared from the floor: “Tomorrow, this proposal will be approved.” The session saw sharp exchanges between left-wing and right-wing benches, including accusations of betrayal and party-financing taunts. PS parliamentary leader Eurico Brilhante Dias accused Chega’s leader of having “lied” to the electorate, while the IL ridiculed the party’s “somersaults”.

Chega's crucial shift

The far-right Chega party, whose votes are decisive for the government’s majority, signalled it would not block the legislation. Party leader André Ventura placed Chega in the "hemisphere of those who know it is not ideal, but want to achieve something for those who work", claiming credit for securing extra vacation days, higher shift premiums and extended parental leave. He promised workers “the greatest victory of recent decades”.

For us, increasing shift premium is not a joke. Gaining increased vacation days is not a joke. Gaining increased parental leave is not a joke.

The centre-left PS and the Liberal Initiative accused Chega of repeated flip-flops. PS deputy Hugo Oliveira recalled Chega’s earlier description of the bill as a “bar open to dismissals”, asking whether Ventura would now “give a hand” to the government.

Union fury and strike threat

The two main trade union confederations, CGTP and UGT, rallied outside the Assembly in Lisbon. CGTP secretary-general Tiago Oliveira warned that any party that allowed the bill to advance would be “betraying the will of workers” and promised to hold them accountable at the ballot box.

All MPs and parties that, by voting in favour or abstention, allow the labour package discussion to continue are betraying the will of workers.

UGT leader Mário Mourão said his union is not ruling out a general strike, though he advocated a “gradual and prudent” escalation. He forecast that Chega’s earlier “no is no” had become “yes is yes”, and that the party would enable passage.

The 'no is no' is gone; now the future and the present is 'yes is yes'.

The left-wing Communist Party labelled the expected vote a “coup” and a “betrayal”, with secretary-general Paulo Raimundo vowing that workers would not forgive those who backed the reform.

Workers forgive many things, but they don't forgive betrayal. And those who tomorrow associate themselves with this labour package will have to reckon with that for the future.

Cornerstone measures

The government bill, which entered parliament on 18 May, retains the core elements that unions oppose: a return to a three-year maximum for fixed-term contracts, a five-year cap for indefinite-term contracts, reinstatement of the individual bank of hours, and revocation of the one-year ban on outsourcing after collective dismissals. The prime minister, speaking from Brussels, reiterated the government’s “absolute availability” to deepen the reform with contributions from political parties.

Next steps

If the general approval passes on 19 June, the bill proceeds to specialised committee work, where amendments can still be tabled. Left-wing parties vow continued opposition, and unions plan to escalate mobilisation, including possible strike action. UGT’s Mourão said the union would first seek meetings with party groups before deciding on the next phase of protest.