Portugal's UGT Union Rejects 'Trabalho XXI' Labor Reform Proposal

Portugal's main trade union federation, the UGT, unanimously rejected the government's latest draft of the "Trabalho XXI" labor reform on April 9, 2026, halting a negotiating process that had stretched across nine months and more than 50 meetings. The UGT's national secretariat stated that the proposal "does not yet allow for a consensus to be reached," citing concerns over the individualization of labor relations, the liberalization and precarization of the labor market, and restrictions on trade union activity. Despite the rejection, the union federation simultaneously called for the continuation of negotiations within the Social Concertation framework, signaling it had not walked away from the table entirely. The government, represented by Minister of the Presidency António Leitão Amaro, responded by keeping the door open.

„We will wait for the receipt of the UGT's official position and we can state that the Government has an open door to complete the negotiation. There is still a phase until the end, and it will arrive some day, but I am not here to decree any end.” — António Leitão Amaro via Observador

Portugal's Social Concertation framework has served as the primary arena for negotiating major labor legislation changes for decades. The "Trabalho XXI" process, which began approximately nine months before the April 2026 rejection, involved the government, the UGT, and four employer confederations. The CGTP, Portugal's other major trade union confederation, did not participate in the negotiations and had consistently called for the proposal's rejection throughout the process.

Employer confederations split over whether to push on The reaction from employer organizations was divided, reflecting the fragility of any future negotiating coalition. The CIP, through its director-general Rafael Alves Rocha, stated that it maintained "full availability" to continue negotiations, a position echoed by CIP president Armindo Monteiro, whose stance was described as notably less definitive than that of other employer representatives. The Commerce and Services Confederation of Portugal (CCP), led by João Vieira Lopes, took a sharper line, stating it did not see how continuing negotiations would be viable given that all points had already been reviewed. The Tourism Confederation of Portugal (CTP), led by Francisco Calheiros, said it was not surprised by the UGT's decision and warned it was not available to continue what it described as "merely dilatory processes." The Confederation of Farmers of Portugal (CAP) declined to take a position immediately, saying it would wait until after a formal meeting with all social partners convened by the minister. The government, according to reporting by Observador, was sounding out social partners for another negotiating round before a scheduled plenary meeting of the Permanent Commission for Social Concertation, which had been pre-scheduled for the following Monday but was subsequently sidelined.

President Seguro's veto threat looms over the entire process A significant constitutional constraint now weighs on the government's ability to push the reform through unilaterally. President of the Republic António José Seguro, elected in February 2026, warned that he would keep a commitment made during his presidential campaign and veto the labor reform if no agreement is reached within the Social Concertation framework. The threat introduces a structural obstacle for the center-right PSD/CDS executive, which would need either union sign-off or a presidential reversal to see the legislation enacted. The UGT's nine listed points of disagreement include the extension of fixed-term contracts, the elimination of reinstatement guarantees in cases of illegal dismissal, the return of individual hours banks, the possibility of category changes with pay reductions, the non-application of collective bargaining agreements to outsourced workers, the elimination of arbitration mechanisms, the facilitation of agreement expiry, the extension of minimum services during strikes, and restrictions on union activity in companies. Government sources, as reported by Observador, believed the UGT was buying time to justify a future "yes" ahead of May 1, given that the CGTP had already called a general demonstration for April 17 and that April 25 represented an important date for union federations to demonstrate strength.

Right wants Parliament to take over, left calls it war on workers Political parties across the spectrum reacted to the breakdown with sharply divergent prescriptions. On the right, Chega leader André Ventura argued the government must either abandon the labor reform or bring it to Parliament, invoking the right-wing majority currently present in the legislature.

„Either the Government gives up on labor legislation and the reform of labor legislation, or we seek to do it as we should have done from the beginning, respecting the majority of voters that currently exists on the right in Parliament and on the right in the country.” — André Ventura via SIC Notícias

Mariana Leitão, president of the Iniciativa Liberal parliamentary group, similarly demanded the government submit its proposal to Parliament without further delays, arguing that Social Concertation represented only

7 (percent) — share of workers represented by social concertation, according to Iniciativa Liberal

of the workforce and was therefore an inadequate forum for 21st-century labor market debates. On the left, Miguel Cabrita of the PS argued the proposal sent for consultation was barely changed from the version rejected by unions in July, while Alfredo Maia of the PCP classified the labor package as a "declaration of war on workers and their rights" and called for its withdrawal. José Manuel Pureza, coordinator of Bloco de Esquerda, also called for the proposal to be withdrawn, posting his position on social media. With approximately three months remaining before parliamentary recess, the window for the reform to be debated and passed in the current legislative session was described as narrowing.