Government’s labour reform defeated as CHEGA votes with left-wing parties

The Portuguese government’s flagship labour reform package was voted down in parliament today after CHEGA joined forces with left-wing parties to reject the proposal – dealing a significant political blow to Prime Minister Luís Montenegro.

The reform was defeated at its first reading despite frantic last-minute negotiations between the PSD-led government and CHEGA leader André Ventura.

The proposal secured support only from the governing coalition parties, PSD and CDS-PP, and the Liberal Initiative (IL).

Voting against were CHEGA, the Socialist Party (PS), Livre, the Communist Party (PCP), the Left Bloc (BE), PAN and JPP.

By parliamentary standards, it was an absolutely nail-biting morning. The result remained uncertain almost right up until final voting, with CHEGA requesting a 30-minute suspension of proceedings as talks continued behind closed doors.

CHEGA leader André Ventura had repeatedly warned his party would reject the legislation unless the government agreed to a series of demands – including lowering retirement age to 65, the restoration of lost holiday entitlements, stronger protections for breastfeeding mothers, leave rights for grandparents caring for grandchildren and improved conditions for shift workers.

Ventura held two meetings with Montenegro at the Prime Minister’s official residence in São Bento in an effort to broker a deal.

Earlier this week, Montenegro signalled the government’s willingness to amend and strengthen the labour reform package – but insisted negotiations could only take place if parliament approved the proposal in principle (which would have been a ‘win’ for the government, after months of uproar from unions).

The prime minister did make it clear however, that he did not support lowering the retirement age (as PS leader José Luís Carneiro highlighted, it would leave a €4.5 billion hole in state coffers). And this, in the end, sealed the reform’s fate.

The defeat of these unpopular proposals (proposals that have already prompted two general strikes) saw celebrations among opposition parties on the left. MPs applauded for several minutes, joined by union representatives in the public galleries, including CGTP secretary-general Tiago Oliveira, who appeared “visibly emotional”, say reports.

Parliament Speaker José Pedro Aguiar-Branco subsequently reprimanded those in the galleries, reminding attendees that public demonstrations are not permitted under parliamentary rules.

The failed reform had been presented by the government as a key overhaul of Portugal’s labour legislation. Only yesterday, PSD parliamentary leader Hugo Soares, gave an impassioned speech where he stressed: “Whatever you say, this reform will pass tomorrow”. Thus, Hugo Soares, today, will be feeling doubly uncomfortable. It’s an ‘eat your hat’ moment.

In SIC’s view, this rejection highlights the fragile parliamentary arithmetic facing Montenegro’s minority administration – and underscores CHEGA’s growing influence over the fate of major legislative initiatives.

Just a day before the vote, Ventura had claimed his party was on the verge of securing “the biggest victory for workers in recent decades”. Instead, the collapse of negotiations leaves the government’s labour reform agenda at a standstill, says SIC – much to the delight of union leaders and the bulk of their members.

For most of the parties in opposition, the weekend could not be starting on a better note. “This is a good day for the country,” PS parliamentary leader Eurico Brilhante Dias beamed. PS Socialists are “proud (…) The labour package was negative,” he stressed, and would have delayed the country from the path of “qualification and better salaries”.

Source: SIC Notícias.