Background information

The Law no. 11/2021 of 9 March 2021 suspends the deadlines of collective agreements for a period of 24 months. The measure is intended to prevent unilateral decisions on the expiration of collective agreements. The measure is responding to the impacts of COVID-19 on collective bargaining.

In the second quarter of 2020 there was an abrupt year-on-year decrease in the number of published agreements (-62%) and the number of workers covered by them (-72%). This trend continued through July and September, with a 30% decrease in published agreements and a 73% decrease in number of workers covered.

Overall, in 2020, 118 collective agreements were published with 336,694 workers potentially covered. This was a 34% decrease in agreements compared to 2019, and a 49% decrease in number of workers covered compared to 2019.

By being exposed to the uncertain and unpredictable social and economic conditions brought about by the pandemic, collective bargaining processes lost trust. This lack of confidence in collective bargaining caused a decrease in the propensity towards negotiation and renewal, and an increase in unilateral decision making on the expiration of collective agreements.

Content of measure

The Law no. 11/2021 of 9 March 2021 suspends the deadlines collective agreements for 24 months. The deadlines in question are found in article 501 of the Labour Code, approved by Law no. 7/2009, of 12 February. This measure applies to:

• Survival periods following the termination of a collective agreement carried out after the entry into force of this law;
• Ongoing survival periods, following the termination of a collective agreement carried out on a date prior to the entry into force of this law.

The measure applies to collective bargaining in the private sector and in publicly-owned companies but not in public administration.

Use of measure

All salaried workers and companies in the private sector and publicly-owned companies.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Social partners jointly Trade unions Employers' organisations Company / Companies	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Peak or cross-sectoral level

Involvement

The proposed measure was announced on 13 October by the Council of Ministers during the parliamentary debate of the state budget proposal for 2021. On 15 October, the government presented a document about the state budget proposal that included the proposed measure at the Standing Committee for Social Concertation (CPCS). The government then called for a specific meeting of the CPCS to take place on 30 October to discuss the measure with social partners. They asked them to provide a written opinion on the proposed measure [SRC.PT/3546] by 3 November. On 5 November, the Council of the Ministers announced Bill 63/XIV. The bill was then submitted to the parliament for consideration. The social partners had the possibility to express directly their views about the Bill 63/XIV in the subsequent public period of consultation, which is 30 days according to Labour Code Articles 469 to 475. The bill was approved by the Parliament on 29 January 2021.

Views and reactions

• The employer confederations CIP, CAP, CCP and CTP [SRC.PT/3557; SRC.PT/3559; SRC.PT/3561; SRC.PT/3562] expressed their disagreement with the limited time and procedure of consultation in the context of the tripartite Standing Committee for Social Concertation (CPCS). They argued that they did not have enough time for a real exchange of views. They also expressed strong disagreement with the content of the measure.
• The trade union confederation UGT [SRC.PT/3560] agreed with the content of proposed measure. Also UGT highlighted that the consultation procedure did not allow for a real social dialogue.
• The trade union confederation CGTP [SRC.PT/3553] stressed that would be appropriate to revoke the Labour Code rules allowing for the unilateral expiry of collective agreements. CGTP calls for the reinstatement of the fundamental collective bargaining rights and the reinstatement of the principle of more favourable treatment for the worker. They asked government to guarantee that there are no notices of terminated agreements until these rights are reestablished.

Sources

• 30 October 2020: Consulta do Governo aos Parceiros Sociais - Suspensão dos prazos de sobrevigência que conduzem à caducidade (app.parlamento.pt)
• 03 November 2020: CGTP_Consulta aos Parceiros Sociais - Suspensão dos prazos de sobrevigência que conduzem à Caducidade - Posição da CGTP (app.parlamento.pt)
• 03 November 2020: CAP_Consulta aos Parceiros Sociais - Suspensão dos prazos de sobrevigência - Posição da CAP (app.parlamento.pt)
• 03 November 2020: UGT_Consulta aos Parceiros Sociais - Suspensão dos prazos de sobrevigência - Posição da UGT (app.parlamento.pt)
• 03 November 2020: CCP_Consulta aos Parceiros SociaisConsulta aos Parceiros Sociais - Suspensão dos prazos de sobrevigência que conduzem à Caducidade - Posição da CC (app.parlamento.pt)
• 03 November 2020: CTP_Consulta aos Parceiros Sociais - Suspensão dos prazos de sobrevigência que conduzem à Caducidade - Posição da CT (app.parlamento.pt)
• 04 December 2020: CIP_Consulta aos Parceiros Sociais - Suspensão dos prazos de sobrevigência - Posição da CIP (app.parlamento.pt)
• 09 March 2021: Lei n.º 11/2021 (dre.pt)