Portugal’s Minority Government Stumbles on Labour Reform Bill

The proposed overhaul aimed to streamline dismissals and expand outsourcing, measures the government argued were essential to revitalize the nation’s stagnant productivity. However, the bill ignited fierce resistance from labour unions, who orchestrated two general strikes in six months, claiming the changes would dismantle fundamental worker protections. The rejection was met with visible jubilation from union representatives watching from the galleries.

Only 100 deputies in the 230-seat chamber supported the proposal, leaving the administration vulnerable. Prime Minister Montenegro dismissed the opposition’s maneuver as mere political obstructionism, accusing the disparate parties of prioritizing tactical power plays over economic competitiveness. Despite the defeat, he signaled his intention to reintroduce the reforms, claiming the government’s core convictions remain unchanged. The breakdown in negotiations was finalized after Chega leader Andre Ventura demanded a reduction in the retirement age—a move the government refused to entertain, effectively sealing the bill’s fate.