Trade and Services Confederation supports EU Green Paper on labour legislation reform

The Portuguese Trade and Services Confederation (CCP) agrees with the concept of flexicurity as outlined in the EU Green Paper on the reform of labour legislation. CCP’s main demands are the increase of working time flexibility, revision of the laws concerning individual dismissals and widening of the scope allowing the use of fixed-term employment contracts.

From the outset of the debate on ‘flexicurity’, the President of the Portuguese Trade and Services Confederation (Confederação do Comércio e Serviços de Portugal, CCP), José António Silva, stated that the flexicurity model – combining a balance of flexibility and employment security – would be feasible in Portugal, although it would constitute a major challenge (PT0702039I).

Alongside the other social partner organisations represented at the Standing Commission for Social Concertation (Comissão Permanente de Concertação Social, CPCS), CCP was asked to express its position on the EU Green Paper on Modernising labour law to meet the challenges of the 21st century (COM(2006) 708 final (77Kb PDF)) (EU0701019I). Subsequently, the confederation issued a report examining the Green Paper, which it presented to the Economic and Social Council (Conselho Económico e Social, CES).

Flexibility in working time

According to the LUSA press agency (Lusa Agência de Notícias de Portugal, LUSA), in its report CCP agrees with the concept of flexicurity as outlined in the EU Green Paper on the reform of labour legislation. CCP emphasises that the organisation of working time is ‘one of the issues where the intervention of the European Union is more urgent’ in order to ensure greater flexibility. CCP would like to see an increase in the reference period for calculating the average working time duration to 12 months and that the organisation of working time should be defined through individual agreements between the employer and the employee. Furthermore, CCP demands that labour legislation should allow the variation of working time within a period of reference to be extended up to a limit of 12 hours a day and 60 hours a week.

Flexibility in employment

In its report, CCP also argues for more flexibility regarding individual dismissals. The confederation considers that dismissals should be allowed in all cases where the trust relation between the employer and employee is undermined, as well as in instances where employees are not capable of adapting to functional mobility.

The employer confederation is also in favour of much more flexible regulations concerning short-term employment contracts. According to CCP, there is no reason to limit this form of contract by restricting the situations in which companies are allowed to use them, by setting a maximum length of duration or by limiting their consecutive renewal.

Meanwhile, CCP believes that the state should provide social security during temporary unemployment, that is, between jobs. According to the confederation, employability demands the reinforcement of social protection during unemployment. It also requires vocational training for unemployed and employed persons in order to enhance their mobility and the adjustment of academic curricula to meet the real needs of the labour market.

Commentary

CCP’s present position concerning the EU Green Paper on the reform of labour legislation is in line with the main demands and proposals which this organisation has been formulating and presenting at the CPCS over the years. The confederation seeks a very flexible approach to temporary and short-term employment contracts and to the organisation of working time. Above all, it calls for a revision of Portuguese legislation on individual dismissals in order to improve the employers’ freedom to dismiss workers.

However, at national level, CCP’s demands have not been successful, insofar as neither consecutive governments nor the trade union organisations have welcomed the confederation’s aspiration for further flexibility. Both the General Workers’ Union (União Geral de Trabalhadores, UGT) and the General Confederation of Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses, CGTP) have received the EU Green Paper with criticism; UGT issued a position paper (PT0704039I) while CGTP has called for strike action (PT0704049I).

Maria da Paz Campos Lima and Reinhard Naumann, Dinâmia