Parties' industrial relations and employment policies outlined

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A general election is to be held in Portugal on 17 March 2002. We highlight the contents of the main political parties' manifestoes in the area of employment and industrial relations.

Following poor results for the ruling Socialist Party (Partido Socialista, PS) in local government elections held in December 2001, the Prime Minister, António Guterres, tendered his resignation, thus bringing about an early general election on 17 March 2002. The key issues which have arisen in the election campaign have included:

• Portugal's strategy for economic development;

• the need for fiscal reform, with the various political parties presenting a range of fiscal strategies. One of the central questions is the adoption of a fairer tax policy, which does not overburden employees, as is currently thought to be the case;

• the future of reforms underway in the social security system (PT0112112N), essentially in terms of the debate over the respective advantages and disadvantages of the public and private systems;

• improved effectiveness of health and education policies; and

• the role of the state, the reform of public administration and the professional status of civil servants.

Employment, labour and industrial relations issues are also addressed in the political parties' manifestoes, in varying degrees of detail.

The PS manifesto proposes a reform of labour law, addressing a concern that had begun to emerge during the term of the previous government that in Portugal there is a vast gulf between the content of labour law and day-to-day practices in the workplace. The proposed reforms would aim to introduce changes in labour law with a view to reconciling citizens' rights and the dignity of workers with ways for companies to adapt to increasing competition.

Under the heading 'Increasing competition, reinforcing national cohesion', the PS manifesto calls for: improved employment rights: the updating of pay levels; the progressive introduction of a 35-hour working week; the development of higher-quality employment; the fight against unstable employment; the promotion of health and safety; and the improvement of the collective bargaining system. With regard to the development of civil society, PS calls for a deepening and development of social dialogue and concertation between the government, employers and trade unions. Collective bargaining is advocated as a way of improving labour relations and employment quality.

The Social Democratic Party ( Partido Social Democrata, PSD) manifesto deals, in a very general way, with the need to improve employment rights and to update pay levels.

One area where commentators see no major differences between the views of the two main parties is the content of vocational training policies. In essence, both the PS and the PSD seek to maintain the status quo.

The Portuguese Communist Party (Partido Comunista Português, PCP) advocates a model of economic development that respects small and medium-sized businesses, with less dominance of large economic and financial players, and prevents the erosion of the productive fabric. It also outlines general objectives for overcoming the problems of low pay, low skill levels and high levels of employment instability, criticising the state and public administration.

The Left-Wing Coalition (Bloco de Esquerda, BE) has focused its attention on the need to overcome the problem of precarious employment, and to draw up an immigration policy with a view to the full integration of immigrants into Portuguese society.

Sources close to the Christian Democrat Party (Centro Democrata Cristão, CDS/PP) state that new forms of labour relations should increase the flexibility of working hours and develop rules that reward merit, toning down the egalitarian tenor of certain items of labour law.