The Order of Economists estimates that the general strike on the 11th could cost the Portuguese economy between 600 and 700 million euros,a scenario in which half of the workers join the strike.
The Order of Economists predicts that the general strike scheduled for Thursday will have a significant economic impact. Calculations point to losses of between 600 and 700 million euros, assuming a scenario of participation in the order of 50 percent of workers, both in the public and private sectors.
According to the Northern delegation of the Order of Economists, the impact results mainly from the drop in production and consumption, as well as disruptions in supply chains.
“The direct cost arises from loss of production, loss of consumption and all the disruptions in the supply and flow chains. There will be many people who may not go to work, not because they are going to join the strike, but because of the disruptions in public transport. This alone will cause production losses”, says Carlos Brito, president of the Order of Economists North.
The institution calculates that, on a day of strike, the wealth produced by the country is equivalent to around half a day of lost work.
Transport, hospitals, schools, banks and even flights are expected to be affected. Although there are minimum services in several sectors, they do not cover the entire activity.
In the Lisbon Metro, for example, no minimum services were decreed. The company announced that it will appeal the decision, arguing that it is an essential public service. In Porto, there are also no minimum services planned at STCP, which ensures a large part of mobility in the city.
The Order of Economists also believes that a significant adherence to the strike could pressure the government to review some of the measures provided for in the labor package.
“The labor package is necessary but before that there are many things to do. Speaking to many businesspeople, I tell you very frankly, the majority say that it is not necessary to change the labor law to increase the competitiveness of the Portuguese economy. It is fundamental to change fiscal policy”, says Carlos Brito.
The strike was initially called by the CGTP and UGT, but has now been joined by more than 20 unions from various sectors. The strike covers public and private workers and, according to the Order of Economists, does not pit workers against companies, but against the government.
“The government with this shows two inabilities. The first is the lack of opportunity. The second is an inability to negotiate. It was all very poorly done”, criticizes Carlos Brito.
The general strike is expected to take effect not only on Thursday, but also in the following days, due to the accumulated effect of the disruptions on the various services.
