There is no agreement on the labor package: “UGT didn’t need to pretend”

“It is the responsibility of UGT”, says the CIP. “Absolutely intransigent”, adds the Government. “UGT was as far as possible”.

As negotiations about the employment package, held this Monday at the Ministry of Labor between social partners, ended no agreement.

The announcement was made by the president of the CIP – Portuguese Business Confederation, Armindo Monteiro, who held the UGT – General Union of Workers responsible for the lack of an understanding: “It is UGT’s responsibility to not have an agreement.”

Armindo Monteiro stated that “it is not usual to see UGT have the attitude it had” during the negotiation process of the labor reform proposed in July 2025 by the Government.

“UGT didn’t need to pretend which entered into a negotiation process that it does not want to do”, added the CIP director.

Regarding the negotiating stance of the CGTP – General Confederation of Portuguese Workers, Armindo Monteiro considered that “it did not surprise the country” when the trade union central decided to “withdraw from the negotiations”. “It was a clear and transparent position.”

The Government reinforced the accusations: the UGT was “absolutely uncompromising” in negotiations on labor reform, promising to “make every effort to make an agreement possible”.

“UGT is absolutely intransigent. The Government will make every effort to make an agreement possible,” an executive source told Lusa.

The general secretary of UGT, Mário Mourão, told Lusa that the proposed labor reform “does not meet the conditions for UGT to give its agreement“.

Asked by Lusa whether the negotiations surrounding the labor package had ended today without an agreement, Mário Mourão declined to confirm the rupture.

“I don’t know. You have to ask the Government. UGT was as far as possible. It was the Government that said there were 70 consensual measures. But it was still not possible for UGT to reach an agreement because the Government’s main goals remained, and the minister said that she would not give up on them”, said Mário Mourão.

Proposal history

The preliminary reform project, called , was presented by the Government of Luís Montenegro (PSD and CDS-PP) on 24 July 2025 and the Minister of Labor has already signaled her intention to submit the bill to parliament, although she does not commit to a date.

The changes proposed by the Government in July received a ‘no’ from the unions, who consider the changes an attack on workers’ rights.

Business confederations applauded the reform, even as they say there is room for improvement.

Faced with criticism from CGTP and UGT, the executive delivered a new proposal to UGT with some concessions and new measures, but reiterated that he is not available to withdraw the entire initiative, nor to drop the pillars of the announced changes.

The UGT sent a counterproposal to the Government on February 4th and signaled that it has ‘red lines’ in matters such as fixed-term hiring or ‘outsourcing’, whose proposals he considers “unacceptable”.

The CIP also submitted a new proposal with changes to the labor law, following the counter-proposal presented by the UGT.