Observation (CEACR) - adopted 2015, published 105th ILC session (2016)

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

The Committee notes the observations of the employers’ organizations (the Confederation of Farmers of Portugal (CAP), the Confederation of Trade and Services of Portugal (CCSP), the Confederation of Portuguese Industry (CIP) and the Confederation of Portuguese Tourism (CTP)) and the General Confederation of Portuguese Workers – National Trade Unions (CGTP-IN), communicated with the Government’s report.

Articles 1, 2 and 3 of the Convention. Employment policy measures under the economic adjustment programme. In its previous observation and as a follow-up to the discussion at the Committee on the Application of Standards (International Labour Conference, 103rd Session, May–June 2014), the Committee of Experts invited the Government to provide information on the measures taken to review, with the participation of the social partners, the impact of the employment measures adopted to address the jobs crisis. The Government reiterates in its report that most of the measures taken in order to mitigate the impact of the jobs crisis, which also involved the participation of the social partners, were part of the Economic Adjustment Programme, following an agreement in May 2011 with the European Commission (EC), the European Central Bank (ECB), and the International Monetary Fund (IMF), and the Commitment for Growth, Competitiveness and Employment, signed by the Government and the social partners in January 2012. The measures taken had an impact on the organization and functioning of the public employment service and on the implementation of active employment measures. The Committee notes the employment data provided by the Government showing that the overall unemployment rate increased sharply from 14.8 per cent in the first quarter of 2012 to 17.5 per cent in the first quarter of 2013. It then fell to 15.1 per cent in the first quarter of 2014. According to EUROSTAT, unemployment continued its downward trend to 12.1 per cent in July 2015. The Committee further notes the various measures adopted, including employment stimulus programmes, vocational training and retraining measures and specific measures targeting young people. The employers’ organizations indicate that the measures taken by the Government pursued appropriate objectives in respect of existing challenges, which were aimed and continue to be aimed at maintaining and creating employment and, ultimately, achieving the economic and social development of Portugal. The employers’ organizations are of the view that the measures applied by the Government are adapted and in conformity with the provisions and the spirit of the Convention, taking into consideration nevertheless the economic, financial and social difficulties that this period has imposed on enterprises, workers and society in general. The CGTP-IN indicates that the serious employment situation is the result of government policies which do not promote growth. In addition to the 729,000 jobless persons recorded as being unemployed in the second quarter of 2014, there are 257,000 available but inactive persons who are not looking for work (discouraged persons) and 252,000 underemployed persons working less than they would like. The CGTP-IN is of the view that measures implemented have not only failed to resolve pre-existing problems related to employment and unemployment, but have further aggravated them, by further upsetting the balance of industrial relations. In a context of austerity measures, unemployed workers feel increasingly compelled to accept poor-quality and precarious jobs, which are poorly paid and do not match their qualifications. The CGTP-IN adds that stimulus measures in 2012 and 2013 provided public financial assistance for fixed-term contracts paying low wages, and the same was found in relation to employment stimulus measures which succeeded them. Taking into account the persistent high levels of unemployment, the Committee once again requests the Government to specify how, pursuant to Article 2 of the Convention, it keeps under review the employment policies and measures adopted in order to pursue the objectives of full, productive and freely chosen employment, in consultation with the social partners. Please also continue to provide information on the results of the employment measures adopted.

Measures to promote employment among vulnerable groups. Youth employment. The Committee notes the high youth unemployment rate affecting Portugal, particularly for those aged 15–24, which increased from 36.3 per cent in the first quarter of 2012 to 42.5 per cent in the first quarter of 2013. According to EUROSTAT, the unemployment rate was measured at 34.7 per cent in 2014. It also notes the youth employment programmes and measures implemented by the Government, including the Youth Incentive, which ended on 31 December 2013, and the Youth Guarantee. The Government indicates that the following number of young people benefited from the Youth Incentive programme in its main areas: 62,503 persons received vocational training, including 31,932 apprenticeships; 30,282 internships; 11,350 recruitment support measures; and 1,534 entrepreneurship measures. The Government adds that 35 per cent of those who received training and 70 per cent of those placed in internships found jobs within six months of the end of those measures. The CGTP-IN indicates that the Youth Guarantee Programme, implemented since January 2014, has not resolved the problems faced by young persons. It adds that labour market measures promote the use of fixed-term contracts, internships continue to be poorly paid, even for highly-qualified interns, and they are not subject to effective inspections to prevent abuses. Mindful that, in its 2012 resolution “The youth employment crisis: A call for action”, the International Labour Conference indicated that internships, apprenticeships and other work experience schemes have increased as ways to obtain decent work, adding that, however, such mechanisms can run the risk, in some cases, of being used as a way of obtaining cheap labour or replacing existing workers, the Committee requests the Government to provide information that will enable it to examine the quality of employment provided for young people and the measures taken to reduce youth unemployment. Please also continue to provide information on the impact of the employment measures taken with regard to other vulnerable groups affected by the crisis, such as older workers and the long-term unemployed.

Education and training policies and programmes. The Government indicates that, since the demand for skills varies geographically and over time, the training programmes provided by the Employment and Vocational Training Institute (IEFP) network of employment and vocational training centres are sufficiently flexible to meet the needs of enterprises and individuals. The Committee refers to its 2014 observation on the Human Resources Development Convention, 1975 (No. 142), and requests the Government to continue to provide information on the impact of the measures taken to improve qualification standards and coordinate education and training policies and programmes with potential employment opportunities.

Creation of jobs in small and medium-sized enterprises (SMEs). The Committee notes that, during the period from 1 January 2012 to 31 March 2014, the Enterprise Start-Up Support Programme received a loan of 24 million euros and helped to create 1,882 jobs. The employers’ organizations are of the view that enterprises provide the only means of creating sustainable employment. Accordingly, the only way of reversing the trend in unemployment is by ensuring the viability of enterprises, thereby safeguarding existing jobs and creating new ones. The Committee requests the Government to continue to provide information on the impact of the measures taken to improve the business environment in order to promote the development of SMEs and create employment opportunities for the unemployed.