Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

Employment Policy Convention, 1964 (No. 122) - Portugal (Ratification: 1981)

1. The Committee has taken note of the Government's report for the period ending June 1990 and of the information given in it in response to its previous comments. It observes with interest that the information supplied by the Government and the data since published by OECD confirm the continued improvement in the overall labour market situation which it noted in its previous observation. The maintenance of a sustained rate of growth in employment (2.2 per cent in 1989 and 1990 and 2.9 per cent in 1991) made it possible for the unemployment rate to continue falling, from 5.1 per cent in 1989 to 4.6 per cent in 1990 and below 4 per cent in 1991. Nevertheless, despite the noteworthy progress achieved, the still relatively high ratio of long-term unemployment to total unemployment (about one-third) and the unemployment rates among young people and women still give cause for concern, together with the slow-down in the growth of labour productivity. Furthermore the development of tension in the labour market has revealed sectoral shortages of labour and increased inflationary pressure.

2. The Committee notes the employment policy programmes and measures provided for in particular in the activity plan for 1990 of the Institute of Employment and Vocational Training (IEFP). It takes note of the measures to increase the geographical and occupational mobility of workers and the attention given to action on long-term unemployment and to the promotion of employment for particular groups (young people, women and handicapped workers). It again notes that, under the "regionally based incentive system" (SIBR), public aid to investment is aimed at the less-advantaged regions and labour-intensive sectors. With reference to its previous observation, it would be grateful if the Government would indicate how far the objectives of the Programme for Structural Correction of the External Deficit and of Unemployment (PCDED) have been or are being attained, and if it would mention any particular difficulties encountered. Noting that it was one of the functions of the Interministerial Committee for Employment (CIME) to analyse the employment policy and its interaction with the various global and sectoral policies, the Committee would be grateful if the Government would supply information on the opinions or proposals put forward by that body in this connection.

3. The Committee notes the entry into force, during the period covered by the Government's report, of Legislative Decree No. 64-A/89 to revise the legal rules governing termination of the individual labour contract and the fixed-term contract. This text forms part of the reform of the labour market regulations and responds to the concern to increase the flexibility of employment and of the labour market. Other provisions deal in particular with the reduction of hours of work or the coverage and level of unemployment benefit. The Committee would be grateful if the Government would supply information on the scope and implementation of the reform, indicating the estimated effects on the operation of the labour market and, where applicable, on the rights and welfare of workers recognised in other accepted ILO standards.

4. The Committee notes with interest the information concerning consultation with the social partners, with particular reference to questions concerning vocational training which are discussed in the Interministerial Committee for Employment (CIME), the Standing Council for Social Consultation and the Advisory Council of the Office of Technological, Artistic and Vocational Education (GETAP). It notes further that committees for the supervision of sectoral restructuring, composed of representatives of trade unions and employers, have been established; other sectors were in process of restructuring during the period covered by the report. The Committee would be grateful if the Government would continue to supply information on consultation and cooperation with representatives of the interested parties concerned in the formulation and implementation of employment policies.