Difficult negotiations over civil service pay

Download article in original language : PT0004192FPT.DOC

Pay negotiations in Portugal's civil service have proved very difficult in spring 2000, with the trade unions refusing to agree on a final offer made by the government, and seeking a reopening of talks in the light of a potential increase in the projected inflation rate. The unions have called joint strike action for May.

In recent years, it has become the norm for civil service pay to be increased at the beginning of the year. However, in 2000, no award was made until April. The government, having made a final offer, considers the bargaining round to be over, but some trade unions have requested the reopening of negotiations, claiming that this is justified by new developments. The pay of civil servants is set by legislation, following negotiations with the trade unions.

Difficult negotiations

Civil service pay negotiations take place at three bargaining tables involving different groups of trade unions: the common front (Frente Comum) of unions affiliated to the CGTP confederation; the Public Administration Trade Union Front (Frente Sindical da Administração Pública, FESAP) and the Union of State Technical Staff (Sindicato dos Quadros Técnicos do Estado STE) affiliated to the UGT confederation. All the union groupings represent employees in local and central public administration, education and healthcare.

In the 2000 negotiations, trade unions began by claiming pay increases of between 5% (UGT) and 6% (CGTP), later changed to 4% and 5.6% respectively. The government proposed a significantly lower increase. Following bargaining, at the beginning of March, the public administration negotiator, the Minister of the State Reform, together with the secretaries of state for Public Administration and the Budget, presented a final offer involving:

• a 2.5% increase in civil service pay, with a flat-rate monthly increase of EUR 15 for those earning the lowest wages. This flat-rate increase is estimated by the government to cover about 23% of civil servants and could represent an increase of up to 5.2%;

• increases in low pensions, with a 6.5% increase in monthly pensions lower than EUR 250, a 5.7% increase in those between EUR 250 and EUR 500 and a 3.3% increase in those between EUR 500 and EUR 750;

• easier access to career progression;

• an extra day's holiday for every 10 years of work; and

• 50 hours per year of vocational training

For the first time in recent years it was not possible to sign an agreement with any of the public administration trade unions, which rejected this offer. The government, however, considers the negotiations to be closed. Subsequently, in April, a significant increase in the petrol price was registered. This reinforced a request by trade unions to reopen the negotiations, which is permitted by law. The unions argue that the petrol price rise, followed by the negotiation of tax allowances for employers in the transport sector, may push inflation higher than expected (2%) and reduce workers' purchasing power.

Joint action and demands

Several industrial actions, such as demonstrations and strikes, were called during the course of the negotiations. A strike held on 18 February, according to the CGTP Frente Comum, was followed by 65% of civil servants. There were also many instances of local mobilisation of staff. A further strike has now been called jointly by all unions for 9 May, affecting hospitals, schools and ministries, in order to press for the reopening of the negotiations. Meetings have been sought with the President of the Republic and with the members of parliament, and demonstrations were held on the public holidays of 25 April and 2 May.

The CGTP Frente Comum is currently pursuing the following claims:

• a reversal of the current perceived policies of restraining and devaluing civil service pay, replacing them with a more "just" approach;

• elimination of the gap (at present 8%) between between lowest pay rates and the national minimum wage;

• convergence with wage levels elsewhere in Europe;

• a guaranteed minimum monthly pay increase of EUR 25 for all workers;

• higher increases in low pensions;

• correction of perceived injustices arising from the reform of career paths

• new pay supplements for insalubrious, dangerous and risky work; and

• a definitive end to the use of forms of temporary work in the civil service.

Commentary

Public administration pay negotiations are usually concluded early in the year. However, in 2000 the negotiations are proving particularly difficult because:

• the fact that no annual pay increase guideline for 2000 was set by the national intersectoral social dialogue (PT0001179F), as had happened in previous years, makes the pay increase in the civil service an important reference point for wage bargaining in other sectors;

• the CGTP trade unions have recently been taking a tougher line in civil service negotiations, due to the increasing number of privatisations (eg in water and refuse services), their opposition to several forms of employment contract, and their promotion of the idea that low wages are not unavoidable; and

• awareness of European comparisons is increasing.

(Maria Luisa Cristovam)