Government and public service unions negotiate for 1998

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Negotiations between the Portuguese Government and public service trade unions began in October 1997. The Government's offers and the length of time the proceedings have taken have not met union expectations.

The most controversial issues in the public service negotiations which began in October 1997 have been career paths, precarious employment and, above all, wage increases. Unions such as the Public Administration Union Front (Frente Sindical da Administração Pública, FESAP) and the Local Administration Union (Sindicato Nacional dos Trabalhadores da Administração Local, STAL) have already been on strike over these issues.

On 10 October, the Government increased its initial pay offer from 2% to 2.15%. According to Public Administration Minister Jorge Coelho, this represents a real growth in wages, that is, a wage rise which is higher than the forecast 2% inflation rate for 1998. In 1997, increases for the public service were 3%, based on a forecast inflation rate of between 2.25% and 2.5%.

Public service unions have demanded between: 3.5% - General Workers' Union (União Geral de Trabalhadores, UGT); 4% - FESAP (a UGT affiliate); 5% - Union of State Technical Staff (Sindicato dos Quadros Técnicos do Estado, STE/UGT); and 6.5% - Common Front of Public Administration Unions (Frente Comum dos Sindicatos da Administração Pública), an affiliate of the General Confederation of Portuguese Workers (CGTP). They unions have stated that even though the projected growth of the Portuguese economy was set at 3.75%, the Government's amended offer of 2.15% actually represents a real wage increase of only 0.15% given that inflation in 1997 was 2%. Unions such as STAL and the Common Front have also demanded an updating of the 100 index (Indíce 100) for the public administration and the elimination of the differential it contains with respect to the country's minimum wage. It is important to stress that nearly 70% of local administration employees earn net wages of less than PTE 100,000 a month.

Other significant issues include career restructuring for public servants, the opening up of recruitment competitions for employees with low levels of job security and the upgrading of low pensions. In this last case, FESAP is demanding a 4% increase in pensions, an updating of meal allowances to PTE 720 and a minimum increase of 5% for pensions awarded before 1989.

A new round of negotiations has been scheduled for 31 October. Given the nature of the current picture, unions such as the Common Front and SINTAP have been organising demonstrations.