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

Individual Case (CAS) - Discussion: 2014, Publication: 103rd ILC session (2014)



A Government representative stated that his Government had adopted active policies to reform the labour market as part of the Economic and Financial Adjustment Programme established to revive sustainable employment and consequently reduce unemployment, where a positive trend had been emerging since the end of the first quarter until the fourth quarter of 2013. According to the data provided by the National Statistics Office, the employment rate in the first quarter of 2013 was 48.8 per cent. In 2013, a total of 114,000 jobs had been created. In the first quarter of 2014, the employment rate was 49.8 per cent and 72,300 jobs had been created. The rate of full-time employment had increased in comparison with that of part-time employment, and the number of contracts of indefinite duration had risen by 3.5 per cent in comparison with the first quarter of 2013. There was also a clear downward trend in unemployment, which had continued for four consecutive quarters. The unemployment rate, which had stood at 17.5 per cent in the first quarter of 2013, had fallen to 15.1 per cent in the first quarter of 2014, which meant a 138,700 drop in the jobless total in one year. According to EUROSTAT data, that trend was holding in 2014. In April 2014, with the unemployment rate standing at 14.6 per cent, Portugal was recording the largest drop in unemployment in the European Union. The youth unemployment rate had fallen by 4.2 percentage points since the first quarter of 2013 and in April 2014 it had stood at 36.3 per cent, which corresponded to a reduction of 16,000 in the number of unemployed young persons in one year. The Government’s action in the sphere of employment policy followed the specific guidelines and measures contained in the agreement entitled “Commitment to growth, competitiveness and employment”, concluded between the Government and the social partners in January 2012. The “Programme for the relaunching of the public employment service” was an example of the measures adopted under the agreement and provided for a comprehensive rationalization of active employment measures in collaboration with the social partners to give better support to unemployed persons and active workers. The public employment service was tripartite and played a key role in combating unemployment and in job creation, employment promotion and vocational training. Regarding the measures adopted in the public sector, the Government referred to the establishment in March 2012 of an integrated, cross-cutting strategy with the prime goal of ensuring that the adjustment was more efficient and effective in the public service, and the application of the “Programme for the relaunching of the public employment service” by means of the “adjustment intervention model”, which sought to improve the categorization of unemployed persons by taking account of their needs in order to facilitate their return to the job market. Those changes allowed the employment service to attract a greater number of job offers and an improvement in the capacity of the public employment service to place people in jobs. By comparison with 2012, there had been a 49 per cent rise in job vacancies and an increase of 43.5 per cent in job placements in 2013. Between January and April 2014, employment rose above 52.4 per cent and job placements increased by 49.4 per cent. The Government also referred to the measures taken to increase training for the unemployed with a view to avoiding long-term unemployment, which applied to 235,000 unemployed persons in 2013 and to 101,000 persons in January–April 2014.

Regarding youth unemployment, specific programmes adopted since 2012 had benefited 100,000 young persons via internships, recruitment support, enterprise development and vocational training. A total of 35 per cent of young people who had undertaken training and 70 per cent of those who had embarked on internships subsequently managed to find jobs. The “National youth guarantee implementation plan” was currently under way. Measures to improve the business climate included financial support for self-employment and enterprise creation for the unemployed through enterprise creation support measures and the National Micro-Credit Programme, which had resulted in the creation of 1,090 jobs and the advance payment of unemployment benefits to finance self-employment, which had catered to 2,643 persons. In 2013, the number of new enterprises had increased by 15 per cent and the number of enterprises that had gone into liquidation had fallen by 30 per cent in comparison with 2012. The Government representative added that training needs at national, regional, local and sectoral levels were taken into account in planning the provision of training, following the analysis of training needs with the participation of the social partners.

The Employer members said that this was a difficult case in a number of respects. It was difficult for the Government, as it was required to respond to an economic and financial crisis in a manner that both stabilized its finances and raised productivity. For the social partners the challenge lay in their role in employment creation policies as well as the role of small and medium-sized enterprises. The case was also difficult for the Committee of Experts as this body was composed of lawyers who lacked the specific expertise of a labour economist or public policy expert. Therefore, the Committee of Experts rightly limited itself to asking questions and raising issues rather than providing dogmatic positions. As to the measures taken, the Government had not acted in a unilateral manner, as the majority of the social partners had agreed on the modifications introduced to the Labour Code as well as on a number of economic and employment adjustment programmes on the grounds of dialogue carried out at the national and regional levels. Although there had been some progress, it remained a case of concern due to the high level of unemployment. However, there existed a number of different policy paths available to meet the obligations of the Convention, which consisted in the proper functioning of the labour market with both high levels of employment and good quality occupations. In this regard, the 2013 Declaration of Oslo entitled “Restoring confidence in jobs and growth” correctly reflected the spirit of the Convention when it called for the need to establish policy coherence between social and economic measures in order to overcome the negative economic, social and political effects of the crisis. With regard to employment and the obligations under the Convention, the concerns of the Employer members were with regard to the creation of jobs that covered the basic rights and standards, and not to an assessment of whether these jobs provided the best employment conditions, skills or career opportunities. A country coming out of an economic and financial crisis had to focus on the creation of sustainable jobs in a strengthened labour market. The requirement of an active employment policy, set forth under the Convention, was not tantamount to a policy that was created, conducted or financed by the State. There was no magic formula regarding active labour market policies and several elements could play a role in this respect, such as the promotion of self-employment and the financial stability of the markets. Turning to the issue of youth employment, they considered that some Government measures designed to create youth employment through public spending in training could result in discontent and loss of confidence in the training and skills system if it did not lead to real jobs. There was a need for a viable economic base suited to the creation of employment. In this respect, the creation of sustainable employment depended on the existence of enterprises that were subject to a policy that created a favourable environment for entrepreneurship. Turning to the creation of jobs in small and medium-sized enterprises raised by the Committee of Experts, these enterprises had the potential to increase the labour market capacity and policies to support such enterprises would act as a supplement to labour market policies in meeting the goals of the Convention.

The Worker members stressed that this case raised the issue of the compatibility of austerity measures with ILO standards. In this respect, reference should be made to Article 1 of the Convention, which was inspired by the basic values of the ILO, and to the Declaration of Philadelphia. The purpose of the Convention was not to grant individual or collective rights to workers, but to serve as a pragmatic instrument, recalling that the ultimate aim of the economy was to serve the cause of all human beings and not to enrich only a few. Contrary to what had been said, the issue was not about economic and social policy but, remaining within the legal context, about examining whether the policies being conducted complied with the principles of the Convention, which did not prevent the adjustment of social policy to meet economic needs. These principles allowed for an examination of the extent to which certain elements of social policy might be justified by these economic needs, especially in the event of cuts in pre-existing levels of protection, but also allowed for a discussion on their proportionality or the existence of alternatives. These were legal criteria, to which national and international jurisdictions had recourse on the basis of the principle of “non-regression” established by international and constitutional social standards. The current situation in Portugal raised the question as to whether the policy of cutting labour costs and labour rights was, in the end, favourable to employment. It was not evident that the Worker members’ position on this matter could serve as a basis for consensus for the drafting of conclusions. In addressing the highly complex issues under consideration, which are fully documented by the excellent report of the ILO’s interdepartmental team on the crisis in the European States, it might be worth searching for a compromise and the conclusions should refer to the Oslo Declaration of 2013 and to the mandate it gave to the ILO.

A Worker member of Portugal recalled that Article 1 of the Convention was in direct conflict with the policies leading to recession imposed by the Troïka and by the Government of Portugal, which had led to the deterioration of the quality of employment, the devaluation of trades and careers, widespread job insecurity, unemployment (particularly in manufacturing), a succession of wage cuts and the reform of pensions. The official unemployment rate had reached 15.1–24 per cent if one included the underemployed, two-thirds of whom received no benefits whatsoever. Between 2011 and 2013 some 300,000 people emigrated, most of them young professionals. The determination to cut the budget deficit at all costs meant a decline in public investment and in the resources allocated to public services, health, social security and public education. The labour legislation had been amended to facilitate dismissals and make them less costly, to reduce the payment of overtime and to extend the length of fixed-term contracts. Social dialogue and collective bargaining were at a complete standstill and the Government had presented new proposals that undermined collective bargaining and encouraged further wage cuts. Labour was therefore devalued and underpaid and workers’ rights and freedom were at issue; two-thirds of job vacancies were for precarious jobs paying 580 euros a month. Meanwhile, tens of thousands of unemployed people were being recruited on integration contracts in the public administration where they were entitled only to unemployment benefits, which undermined decent work in the public service where wage cuts could be as much as 20 per cent. The minimum wage was still 485 euros and should be immediately reviewed. The austerity measures that had been taken should be vigorously condemned by international institutions, and the ILO should devise measures to promote employment-generating policies in a spirit of social justice.

Another Worker member of Portugal observed that her country was going through one of the most difficult periods of its history, particularly from the perspective of employment promotion. The sole concern of Government policy was to reduce budget costs, and that had a devastating effect on the economy and the labour market. Austerity policies only made the situation worse in a country that was currently facing low economic growth, limited economic flexibility, rising unemployment and low wages. In 2012, most of the Government’s social partners had agreed to sign a tripartite agreement that gave priority to employment growth, which included proactive education and vocational training policies. However, the Government had never implemented the agreement in a balanced way and had resorted instead to implementing labour reform. The policies pursued under the guise of consolidating the budget showed clearly that its new objective was to modify the labour market and to cut labour costs. The results were well known: rising unemployment, particularly among young people; an increase in long-term unemployment; a drop in employment rates; a reduction in active employment policies; and a decline in productivity. It was unacceptable that the Government should give priority to balancing the budget rather than to active employment policies in favour of the workers, and especially young people.

The Employer member of Portugal recalled the difficult situation that Portugal was facing, and stated that the Government and social partners had acted together to find responsible solutions during this period. The conclusion of the Tripartite Agreement for Competitiveness and Employment and the Commitment to Growth, Competitiveness and Employment was evidence of the social dialogue that had taken place. The Memorandum of Understanding, signed with the Troika had had a recessive effect, resulting in the closure of more enterprises, and there had not been any improvement in the labour market since this financial assistance had been launched. The Memorandum of Understanding had not considered some important factors in the country’s economy, and had contributed to further unemployment. Nonetheless, reforms took a long time to produce results, and the start of the recovery could now be observed. The revision of the Labour Code had been an attempt to adapt to the current financial circumstances of the country. The measures were innovative and had been approved by the four most representative employers’ organizations and one of the two most representative trade union confederations. Such changes would have an effect on new labour contracts in the future, which could lead to more jobs. It was not true to say that those measures had contributed to unemployment. In his opinion, the accusation was unfair that the reform had facilitated the termination of employment and had introduced flexibility in working time, and failed to take into account the important innovations introduced, which had been accepted by four employers’ federations and the General Workers’ Union (UGT). The other trade union federations had rejected the measures, even though they had participated in all the meetings. He recalled that enterprises were essential in the recovery as enterprises provided employment. While various measures had been taken, at a cost of more than 2 billion euros, it was not yet possible to calculate the impact of those measures. Moreover, such measures needed to be improved to be more friendly to both businesses and workers. Nonetheless, Portugal was on the right path towards respecting its obligations under the Convention.

The Worker member of Spain stated that the facts on the ground, the economic figures and the general situation in Portugal confirmed that the country was worse off in terms of poverty and inequity. The plight of young people was particularly alarming, and because of the lack of employment opportunities their prospects were bleak. Youth unemployment had risen dramatically in recent years and wages, where there were jobs to be had, barely covered basic needs. In 2012, the poverty rate had reached 24.7 per cent, which meant that almost a quarter of the population was living on less than 434 euros a month. Youth unemployment (workers under 25 years of age) had risen from 28 to 37.5 per cent. Young people were the largest group among the long-term unemployed and, as a result, were also the largest group to emigrate. More than 300,000 Portuguese workers had left the country between 2011 and 2013, even though most of them were highly skilled. This was bound to have disastrous consequences for the birth rate and for the sustainability of the social security system. Most of the unemployed, especially among younger workers, had no social protection; coverage for unemployed workers under 25 was only 7 per cent and for those between 25 and 34, where the employment rate was lowest, only 33 per cent. High unemployment and workers’ fear of losing their jobs encouraged exploitation and low wages. Priority should be given to employment creation, and austerity policies should be abandoned in the interest of young workers. The measures that were largely responsible for the difficult social and economic conditions of young Portuguese candidates for emigration needed to be corrected. It was vitally important that wages and pensions be improved, that social justice be promoted, that priority be given to the domestic market, that the minimum wage be increased and that workers’ rights be protected.

The Worker member of Brazil, speaking also on behalf of the Worker members of Argentina, Uruguay and Venezuela, recalled the founding principles of the ILO and referred to the fourth paragraph of the preamble of the Convention. Legal bodies, such as the Committee, did not have the political legitimacy to determine which economic and social policies were best in times of difficulties. However, the Committee had the obligation to analyse the implementation of standards, and that included the determination of whether or not a certain policy was in conformity with those standards. In that regard, the Government of Portugal was implementing an economic and social policy that was not in conformity with the Convention. With reference to Article 1 of the Convention, it was evident from the report of the Committee of Experts that there was a continuous growth in unemployment in the country, while social protection continued to fall. The austerity policies implemented in Portugal had not generated employment, had not contributed to the free choice of employment and had not contributed to the economic growth and development of the country. While the policy decision was the responsibility of the Government of Portugal, it was the responsibility of the Committee to examine its conformity with the Convention. In closing, the speaker referred to the success of his own country in combating the crisis by raising salaries and distributing income.

The Government member of France, speaking also on behalf of the Government members of Cyprus, Germany, Greece, Italy and Spain, indicated that all those Governments were actively engaged in a coordinated campaign to reduce unemployment, especially among young people. Portugal too was fully committed to the campaign and the Governments she spoke for wished to express their solidarity with the Government of Portugal in its efforts to overcome the crisis in particularly difficult circumstances. It was important to reaffirm the aforementioned Governments’ commitment to social dialogue, without which no long-term solution was possible, as well as to active policies aimed at productive and freely chosen full employment. The Portuguese Government was striving in that direction and would continue to do so. She concluded by recalling that the ILO played a major role in the multilateral system, that of promoting its international labour standards by means of increased collaboration with other multilateral organizations, especially the system’s economic and financial institutions.

The Worker member of France, speaking also on behalf of the Worker member of Italy, stated that the social indicators in the country were worrying in a context of increasing debt and the erosion of the public services, social transfers and collective bargaining, which would result in an increase of inequalities and a drop in wages in real terms. The Government’s cost-saving measures were seriously undermining the viability of the social security system and generating inequalities that threatened public safety, social stability and social, economic and environmental balances, thereby entrenching a whole generation in poverty and extreme precarity. The Programme of Economic and Financial Assistance, adopted in May 2011, had brought about a drop in the number of jobs in real terms, high unemployment rates, forced emigration, a drop in fertility rates and the impoverishment of the country. Meanwhile, the Constitutional Court had ruled on eight occasions, most recently in May 2014, that the unprecedented measures adopted were unconstitutional, as they excluded any stimulus policy involving demand, job creation, public services or systems of solidarity and well-being for the population, in line with ILO standards, as advocated by the 2012 Oslo Declaration, which stated that structural reforms and competitiveness should not be in competition with stimulus measures and investment in the real economy.

The Government member of Angola was confident that the Government would manage to implement its active employment policies in the exceptional context of economic readjustment that currently prevailed. It had launched a programme for enterprises and independent employment under which young people were to benefit from job creation support. The Government had demonstrated its determination by resolving the issues surrounding employment promotion and the competitiveness of enterprises, and it was doing all it could to bring about an environment that was conducive to applying the Convention.

The Worker member of the United Kingdom recalled the requirements concerning an active employment policy set forth in the Convention. Compliance involved the Government’s consideration of economic, social and education policies. In the context of the European crises, the Organisation for Economic Co-operation and Development placed particular importance on education and training measures which could help displaced workers find new job opportunities and could thus support the restructuring process. Turning to the situation in Portugal, in spite of some improvements, state social support had been reduced and scholarships had been abolished, so that fewer students were able to continue their studies. The growing unemployment rate of young people and workers aged between 35 and 45 had led to a growing skills gap, an increase in precarious work and short-term contracts. There was hence a need for concerted programmes to provide vocational and skills training so that jobseekers could attain lifelong learning skills. This was even more important due to the reduction of entitlements to compensation for dismissal. Moreover, higher qualified workers also had difficulty finding jobs in keeping with their qualifications and 20 per cent of workers had already left the country to seek employment opportunities abroad. Coming to the labour policy conducted by the Government since 2011 on the basis of the Memorandum of Understanding concluded with the Troika, she observed that the most significant change had been the new Labour Code, which however did not improve the situation. Other initiatives such as the “Personal Employment Plan” and encouragement from self-employment and entrepreneurship had also not changed the situation. In conclusion, she considered that the Government needed to coordinate measures to promote employment, which included in particular education of good quality and training measures.

The Government representative reiterated that his Government was implementing active measures to promote employment within the framework of Convention No. 122 and other ratified international agreements. It was also fulfilling its commitments as a member of the European Community and the Eurozone, within the framework of a stringent economic and financial adjustment programme signed with the Troika. The revisions of the Labour Code were undertaken as part of a wide process of social dialogue and agreed upon by the majority of the social partners, which had made for greater flexibility while putting a brake on job losses. Despite stringent national and international restrictions, in a context of financial, economic and social crisis, Portugal had not ceased to pursue active employment policies and had formulated a restructuring of the public employment service, both at the organizational level and with respect to its technical interventions. This had produced encouraging results, for example, there had been an increase in the number of persons covered by active employment measures in 2013, accounting for a 22 per cent increase over 2012, broken down as follows: employment measures were 40 per cent higher; vocational training measures were 17.3 per cent higher; and assistance for persons with disabilities had increased by 29 per cent over the same period. Portugal remained committed to its measures to promote full employment, within the extent of its possibilities and the abovementioned restrictions. It would have to adjust to using innovative instruments to boost the labour market and stimulate the economy, and it had already witnessed a gradual decline in unemployment since 2013. As pointed out by both the Employer and the Worker members, the Government was faced with structural problems, and only a healthy economy would enable it to create sustainable employment. Referring to the criticisms of the Worker members with respect to the increasingly precarious nature of employment, there had been a downward trend in the number of part-time labour contracts and a proportional increase in the number of open-ended contracts in the first quarter of 2014.

The Employer members indicated that when delving deeply into aspects of employment policy, differences could emerge but they could not be resolved by the Conference Committee, since the Convention and its supervision were such that there was a range of ways in which the objectives could be met according to national circumstances and practices. It was clear that the Government’s objectives in implementing the relevant measures were consistent with the Convention. The Government was undertaking its work at the domestic level with a good understanding of the value of social dialogue, and they encouraged it to have its social partners, particularly its private sector, participate in the implementation of these measures, highlighting that while the private sector had been weakened by the crisis, it had the capability to help the Government effectively achieve compliance with the Convention. They indicated that the existing channels of dialogue could be expanded to that end, especially with respect to small and medium-sized enterprises in the country.

The Worker members said that rising unemployment did not necessarily mean that a country’s employment policy had failed or that the government concerned was not applying Convention No. 122. The situation was more complicated. For example, the problems that Portugal was up against did not all derive from the measures it was obliged to take as a member of the European Union, nor even from the economic crisis. That said, one might wonder just how effective those measures were at solving the country’s problems and, more than that, whether all the social backtracking they entailed was absolutely necessary for its economic recovery. One particular segment of the population, that is, workers and people on social benefits, seemed to suffer most from those measures, while other groups of society appeared untouched. Social justice meant spreading the extra burden caused by the country’s difficulties equitably across the population as a whole, and it was that that gave an added value to tripartite consultation. It would be wrong to think that the protest vote in the recent European elections – often attributed to the extreme Right – pointed to an outright rejection of the European Union as a concept. But they did reflect a genuine concern about the Union’s unilateral economic vision and about the fact that, as things stood, the juridical force of that vision was virtually constitutional, if not supra-constitutional. According to each European country’s historical background, they possessed a more or less acute sense of the links between their own well-being, on the one hand, and peace and open borders, on the other. The ILO itself could not possibly have forgotten the fierce debate which, at the turn of the century, gave the “worker issue” and the “social issue” all their relevance. Here and now, therefore, the ILO had an important role, a positive role, to play in reminding those who held the power of decision in Europe of the debate that had held sway at the time. In Portugal’s case the ILO should contribute actively both to the Government’s efforts to define a policy founded on the fundamental values of the Organization of which it was a Member, and to its partners’ understanding of the reasons behind that policy.

Individual Case (CAS) - Discussion: 2003, Publication: 91st ILC session (2003)

A Government representative stated that he would tackle the different issues raised by the Committee of Experts and provide some indications on recent trends in the labour market. In the first quarter of 2002 and the first quarter of 2003, the active population had grown at a rate of 1.2 per cent, while the activity rates had remained practically constant and the unemployment rates had decreased slightly (0.01 per cent). In the first quarter of 2003, the unemployment rate had been 6.4 per cent with an increase in the number of unemployed workers of 45.6 per cent. In his opinion, youth unemployment and unemployment of older workers had increased less than the overall average. This trend resulted from a slowdown in economic activity, with the slowdown itself being related to the international economic policy and the national economic situation of reducing budget deficits and monitoring public expenditure. Moreover, it had to be kept in mind that, because of the country's integration in the European common market, the national employment policy had followed the guidelines established at the level of the Community to formulate national employment plans. It should also be noted that the average unemployment rate (in the first quarter, according to Eurostat), was 8.2 per cent in the EU and 7 per cent in Portugal.

Concerning the rise in the use of temporary contracts, the latter corresponded to 17.1 per cent of the total of contracts. This rate rose to 15.5 per cent for men and to 18.9 per cent for women. In this period of economic slowdown, employment mainly adjusted itself to the use of fixed-term contracts. With regard to the impact of the measures taken within the framework of the national employment plan on the quality of employment, social protection, increased productivity and competitiveness, the fight against illegal employment and the use of fixed-term contracts, the formulation of a programme to combat occupational risks, the speaker wished to mention the adoption of a new basic law on social security and the approval of the first Labour Code of Portugal which revised and systematized the legislation in force. The Code had been approved by Parliament and was to be signed by the President of the Republic who had requested the Constitutional Court to examine the constitutionality of certain sections of the Code. Concerning the fight against illegal unemployment, certain independent workers sometimes found themselves in a situation of dependency or subcontracting. In this regard, the Labour Code presumed, on the basis of certain factual elements, the existence of a labour contract. In addition, the Government supplied information on the fight against illegal immigration in the context of its report this year under article 19 of the Constitution. Regarding the use of fixed-term contracts, the Labour Code contained provisions aimed at restricting the conclusion and renewal of such contracts. In addition, the social security contributions by employers could be increased based on the number of fixed-term contracts concluded in their enterprise. If these contracts were concluded for more than six months, the employer had to provide vocational training for the worker. Finally, enterprises that converted fixed-term contracts into open-ended contracts could be encouraged by means of a reduction in their social expenses.

The Government representative further mentioned that the Committee of Experts had requested information on the manner in which the representatives of all groups concerned, including rural and informal economy workers, had been consulted on the formulation and the implementation of employment policies and programmes - which was mainly the National Employment Plan. He stated that, in particular with respect to rural and informal economy workers, the latter were represented by the trade union confederations cited by the Committee of Experts. Informal economy workers enjoyed the same rights as other workers and could set up trade unions or become members of an existing trade union. Generally, the consultation with the social partners took place within the Permanent Commission on Social Consultation, which is a tripartite body, and in the framework of which quarterly reports on the implementation of the Plan were being presented and discussed. There existed also a tripartite working group that provided technical support to the formulation of the national plan. Furthermore, laws dealing with employment policy were initially submitted for examination by representative workers' and employers' organizations.

The speaker further referred to the comments made by General Workers' Union (UGT) regarding the difficulty for young jobseekers entering the labour market. This difficulty resulted from a mismatch between the offer proposed by the system of higher education as a whole and the needs of the labour market. Information on this point was available to young jobseekers so that they could orient themselves towards higher skills training sought by the labour market. With respect to the problems of regional differences in employment mentioned by the UGT, some public investment existed to stimulate economic activity in those regions where unemployment was highest. In addition, regional plans that were adapting the national strategies to the characteristics of each region complemented the National Employment Plan. With regard to the training of less skilled youth, those of less than 18 years of age must follow a vocational training course during working time. This was the same for less skilled youth of 16 and 17 years of age who had not completed compulsory schooling and who, if necessary, could follow courses equivalent to compulsory schooling. There also existed vocational guidance services to assist youth in choosing vocational training courses. Finally, it was likely that the duration of compulsory schooling would pass from nine to 12 years, which would considerably improve the basic training of youth. A tenth year of schooling was established focussed on professional training, aimed at youth who completed compulsory schooling but did not pursue further studies.

The speaker stated that the UGT had rightly drawn the attention to the situation of older workers who had no access to retraining and who were more exposed to long-term unemployment. Recent figures showed however that older workers had not been affected by the increase in unemployment. The training possibilities of these workers depended in particular on their capacity to learn and many of them had not completed their compulsory schooling. In this context, to respond to the recent rise in unemployment, the Employment and Social Protection Programme envisaged measures aimed at facilitating the transition of these workers into retirement, if they wished to do so. The Programme envisaged a set of supportive measures to provide training accessible to all workers and the unemployed, independent of their age. Some of these measures were particularly interesting for older workers. Finally, with respect to lifelong learning and access to training for all workers, the Government was preparing a law on the basis of vocational training that would regulate the aspects of lifelong learning. The Employment and Social Protection Programme envisaged other training measures to address the current economic situation of increased unemployment, and the new Labour Code embodied the principle that employers have to ensure the vocational training of their workers.

In reference to the observations made by the Confederation of Portuguese Workers (CGTP-IN) regarding the decline in employment in various sectors of the economy and the sex-based discrimination in certain sectors, the speaker confirmed that there had been a reduction in the agricultural and industrial activities to the benefit of the services sector. The exit of economically active older workers could benefit the transformation of rural businesses and raise productivity in this sector. The reduction in the number of industrial workers could be explained by a number of elements such as: the technological transformation of labour-intensive activities; the substitution of less skilled jobs by higher skilled ones; the restructuring of enterprises, especially through outsourcing, which altered the statistical classifications of certain posts that moved from industry to services; and the relocation of industrial enterprises abroad where wages are lower.

The speaker concluded by emphasizing that he had tried to synthesize his comments on all the issues covered by the Committee of Experts. It was therefore perhaps desirable that, when an observation of the Committee of Experts covered numerous points, this Committee would inform governments of the reasons that had motivated the Committee in selecting the case, or at least of the topics on which governments had to provide explanations.

The Employer members thanked the Government representative of Portugal for his statement which provided explanations and some statistics concerning the employment policy situation in the country. The statement gave a good and balanced picture of what the Government was trying to do by way of meeting the objectives of the Convention. They recalled that Article 1 of the Convention set the goal of pursuing an active policy designed to promote full, productive and freely chosen employment, ensuring for each worker the fullest possible opportunity to qualify for such employment irrespective of race, colour, sex, religion, political opinion, national extraction or social origin with the view to stimulating economic growth and development, raising the standards of living, meeting manpower requirements and overcoming unemployment and underemployment. The Government's statement seemed to cover the efforts under way, based on the national conditions prevailing in the country, and describing the elements of national policy and that of private investment. They recalled that this Convention was a promotional one with flexibility of application but that, in the end, the measure of things was the final result at the workplace. They noted the information provided by the Government, including those regarding the increase of the female workforce which they considered to be substantial in the context of the current worldwide economic situation. They noted the relatively high unemployment figures when compared to the region. They noted the points raised by the Government representative concerning short-term, fixed-term, temporary employment and felt that all this was relative. What might be considered short in one country could be normal in others. They also noted the consultative process concerning the informal sector. They considered the Government should continue its efforts in maximizing skills, pursuing lifelong learning and human resources development in general. They shared the Government's point concerning the Committee's criteria in choosing items for individual cases for discussion. The Committee of Experts' comments in this case were rather short and cryptic. They felt that this was a case where the Government was headed in the right direction.

The Worker members welcomed the efforts made by the Government of Portugal to provide all the information requested by the Committee in 2001. The case of Portugal seemed to be a good example of the problems with which many European countries were being confronted. On the one hand, these related to the increase in unemployment and a growing precariousness of workers and, on the other hand, to the absurd demands of the monetary and budgetary aspects of European economic policy. In this regard, Portugal appeared to be particularly affected by the policy aimed at reducing the budgetary deficit (less than 3 per cent of the BNP). The Worker members further emphasized the particular characteristic of unemployment in Portugal in that it had increased more rapidly than elsewhere in Europe and, paradoxically, had affected skilled young people. This was not only related to the economic situation but also to Portugal's economic structure (low-skilled jobs and relatively low salaries). In these circumstances, Portugal was subjected to a triple effect of a difficult economic situation, restrictive budgetary policies and industrial restructuring. Nevertheless, the Worker members were satisfied with the participation of the social partners in the discussions on employment. In this regard, an agreement had been signed on 1 February 2001 to improve training and to combat precarious employment, in particular, by means of tackling illegal employment and monitoring reliance on temporary contracts. However, the fact still remained that the implementation of these employment agreements was a major problem. The Worker members, therefore, requested that the Government focus its efforts on the problem of increasing unemployment, including that of skilled young people, by ensuring the implementation of these agreements, and that it keep them informed of the measures taken to this end.

The Worker member of Portugal stated that, although there was no problem with the tripartite dialogue in his country, the main difficulty was the concrete implementation in practice of the agreements negotiated through this dialogue. Unemployment in Portugal resulted, on the one side, from the model of development pursued by the authorities, which was based mostly on the labour intensive sectors and, on the other side, from the policy of budget stabilization leading the Government to use such criteria for the reduction of the deficit and of the public debt that have a negative impact on employment. Such unemployment had several characteristics. It had increased at an alarming speed, from 4.5 per cent in June 2002 to 7.3 per cent in May 2003. It is now confronted with the problem of the qualification of the unemployed and had become, under the circumstances, a preoccupying structural question.

The Labour Code adopted by the National Assembly had disrupted the balance of force between employers and workers. Promulgation of this Code could in future lead to new increases in unemployment and make the social dialogue and collective bargaining more difficult, inasmuch as the employers, being in a stronger position, would be less inclined to negotiate with the workers. The adoption of the Code by the National Assembly was an extremely controversial process that led to a general strike in December 2002 and forced the President of the Republic to submit some of its provisions to the Constitutional Tribunal. In conclusion, Portuguese workers were deeply worried by the progression of unemployment and demanded an active employment policy with more vocational training programmes, and the adoption of measures to realize concluded tripartite agreements. Furthermore, the promulgation of the new Code by the President of the Republic might have preoccupying repercussions on the quality of employment, qualification of workers, national productivity and tripartite dialogue.

The Worker member of Senegal considered that the reply provided by the Government representative of Portugal had not addressed all the concerns. He pointed out that the reliance on temporary work had taken disturbing proportions and that the level of employment had indeed decreased in the agricultural and industrial sectors. He stressed the role of the social partners with regard to the development of new legislation in the area of employment promotion, including the workers in the rural sector and the informal economy. The speaker further invoked the persistent structural problems in employment and training, in particular the unemployment of skilled young people and the inadequate training possibilities offered to less skilled youth. He denounced the gap between the regions and persistence of sex discrimination and expected measures to be taken on the part of the Government to ensure compatibility between vocational skills and the number of jobs available so as to achieve real progress and to respond to a social need.

The Worker member of Austria recalled the Preamble and Article 1 of Convention No. 122, as well as the obligation of States that ratify this Convention to design and apply an active employment policy towards the goal of full employment according to national circumstances. This would also include the examination of related economic and financial policies. The deterioration of the employment situation in Portugal reflected a European-wide trend that was not only due to a failed employment policy in Portugal but also due to macroeconomic conditions at the European Union level which hindered economic growth. The European Union pact on growth and stability created neither growth nor stability and had negative effects on the employment objectives outlined in Convention No. 122. He further noted the increasing practice by Portugal and other European governments to exclude workers' organizations from the process of formulation, implementation and analysis of national employment policies as required by Article 3 of Convention No. 122. The social costs of a failed employment policy were being borne by those who were not present in the Governments of these countries. With regard to the conclusions in this case, he requested the Committee to recommend to the Government of Portugal to use all available resources for a proactive employment policy to be designed in consultation with workers' organizations and to use its influence at the European level to fundamentally change the macroeconomic policy of the European Union towards sustainable employment-intensive economic growth.

The Government member of France emphasized that Portugal was a very active partner within the framework of the European employment strategy conducted by the European Union. This strategy gave a very prominent place to questions of employment, education and training, as well as to the relations between competence and competitiveness, and it was Portugal that had pushed and supported this orientation. Without entering into the substance of the questions and discussions to be dealt with by the social partners and the Government, it is worth remembering that Portugal is known as a partner, which is very sensitive to and very engaged in the questions of employment and training and in giving these issues a noticeable place.

The Government representative indicated that, with respect to the concerns expressed by the Worker members regarding his speaking time, he had tried as much as possible synthesize his intervention which covered many different areas. Moreover, the whole of the comments formulated by the Workers raised an objective difficulty to the extent that they required another long and complete intervention on the prevailing economic, social and budgetary policies. Three points merited however to be emphasized. Firstly, while there was agreement on the facts, there were divergences on their evaluation as well as on future perspectives and the determination of objectives resulting from this evaluation. This would not be an easy task. The Portuguese economy relies on activities that are labour intensive and it was necessary to modify this economic model, to focus on young workers and to ensure redeployment of older workers. There were also some divergences as to the impact of the future Labour Code on the economy and social relations. The different aspects of the application of this new Code will be the subject of subsequent comments in the context of future reports that will be submitted by the Government. Finally, the Government accords great importance to the definition and the conclusion of agreements as well as to seek solutions for their practical application - the implementation of these agreements being indeed more difficult than their conclusion. Regarding the employment policy agreements concluded in 2002, there were objective elements that required a new examination of priorities, taking into account the recent elections. If there had been a delay with respect to certain decisions, certain aspects had nevertheless been implemented.

While recognizing the importance of the strategic process by Portugal, the Worker members did specify that this process was developed during a period with a perspective of economic growth. The present situation no longer corresponded to the expectations of the year 2000. They reiterated their conclusions concerning the implementation of the agreements and their request for information on the measures taken.

The Employer members referred to the questions raised during the Committee discussion on this case and commented on two aspects. They observed that the obligation of the Government of Portugal to design macroeconomic policies in line with agreements of the EU agreements or the Lisbon Agreement was not covered by Convention No. 122. Moreover, the Committee of Experts did not give value to these policies in its observation. With regard to the principal objective of Convention No. 122, they stated that it was necessary to focus on the creation of employment opportunities and to analyse the factors that promoted or hindered employment. They noted that this priority was sometimes not clearly recognized. They recalled that policies implementing promotional Conventions such as Convention No. 122 often covered many different policy fields. The assessment of a single part of this policy package could hardly be made without prior in-depth analysis of all the related aspects.

The Committee took note of the detailed information provided by the Government representative and of the discussions that followed. The Committee recalled that this case concerned a priority Convention which required, in consultation with the social partners, the formulation and adoption, within the framework of a coordinated economic and social policy, of an employment policy designed to promote full, productive and freely chosen employment. The Committee noted that the Government was presently carrying out an employment policy within the framework of the European Employment Strategy and was proceeding to a regular revision of its National Plan on Employment. The Committee trusted that the Government would continue to communicate its reply on the matters raised by the Committee of Experts and that it would include information in its reports on the result of the tripartite consultation and on the other measures taken to achieve the important objectives set by this priority Convention.

Individual Case (CAS) - Discussion: 2001, Publication: 89th ILC session (2001)

A Government representative welcomed the opportunity to provide additional information on a number of aspects of the labour market and employment policy in his country. In the first place, he referred to the questions on which the Committee of Experts had requested additional information. With regard to the general level of education and training of the active population, the Committee of Experts had requested more information on the measures adopted to improve these aspects and match the supply and demand of employment. The Government's report had indicated that the skills level of the population as a whole was low, and particularly among adults. The school attendance rate of young persons was around average for the European Union. Nevertheless, a significant proportion of young persons only completed more than the nine years of compulsory schooling. There were also a considerable number of young persons who did not complete their compulsory schooling and entered the labour market prematurely.

Since 1997, the European Union had given high priority to employment policy, which had been strengthened during the Portuguese presidency of the Union. In the first half of 2000, the European Council had made commitments relating to global strategies for the achievement of full employment and social cohesion, which emphasized the importance of continued training and the role of the social partners in modernizing the organization of work, in continuing training and in the promotion of employment. The European employment strategy was based on these political undertakings adopted at the highest level.

The Director-General of the ILO, in his Report entitled Reducing the decent work deficit this year, had indicated that the European employment strategy provided a good example of the manner in which a global employment strategy could successfully be launched.

In relation to this strategy, Portugal had developed a National Employment Plan, which had been revised for 2001, and which took into account certain of the recommendations adopted by the European Union following the implementation of the plan the previous year. In particular, the recommendations which had been taken into account included those of continuing training, the problem of young persons leaving school early, the quality of education and training and the contribution of the social partners to the modernization of the organization of work and the adaptation of industrial relations and continuing training.

He added that the Government and the social partners had welcomed these recommendations and had, at the beginning of the year, concluded an agreement on employment policy, the labour market, education and training, which had included training measures for young persons and adults in the National Employment Plan for 2001. The latter Plan included measures to improve employability, particularly for the categories experiencing the greatest difficulties in entering the labour market, such as young persons, women and the long-term unemployed. The Plan also contained many measures on the education and training of children and young persons, including: (a) the strengthening of pre-school education; (b) the continuation of the existing programme to combat exclusion from school and social exclusion in basic education, including alternative programmes for children and young persons with behavioural and learning difficulties; (c) a system to ensure young persons under 18 years of age entering or attempting to enter the labour market would complete the ninth year of basic schooling, if they had not yet done so, or would participate in vocational training, consisting of at least 1,000 hours. In the case of young persons in work, 40 per cent of the hours of full-time work would be devoted to training, in which case subsidies would be provided to enterprises in compensation for the wages paid for training time; (d) the establishment in the short term of a system providing that young persons who left school at the age of 15, in view of the fact that Portuguese legislation established the minimum age for admission to employment at 16 years, would have access to a tenth year of professional training in cases in which they had finished their ninth year at school and did not intend to complete their studies, with the tenth year of training to be generalized in future to all young persons who had completed their ninth year of schooling and did not intend to continue their studies; (e) the familiarization of young persons with new information and communication technologies, with all schools being connected to the Internet this year; and (f) the existence of skills teaching and courses to facilitate the transition to work for young persons completing secondary or higher education.

With regard to the promotion of education and training for the adult active population, he referred, among the measures adopted, to the developments in the adult education system, both through extramural education and continuing training, including for the most underprivileged groups. He indicated that, as from the next year, at least 10 per cent of the workers in each enterprise would participate in continuing training, which would mean that by 2003 all workers would have completed a minimum of 20 hours of certified training, and that by 2006 this figure would have reached 35 hours. The objective was to generalize access to information and communication technologies throughout the population and for at least half of continuing training to cover this subject.

With regard to the second point raised by the Committee of Experts, he indicated that due to lack of time, he would merely refer to the report which would be sent to the Committee of Experts.

With regard to the structure of employment by skills levels and unemployment rates by educational attainment, the Committee of Experts had requested information on the results of the Government's policy on these issues, and particularly on strategies for the implementation of new information and communication technologies. He indicated that this information would be sent in the next report. By way of illustration, he said that an inter-ministerial programme on innovation in new technologies had recently been undertaken for the implementation of information and communication technologies in public services and enterprises. On the subject of the improvement of conditions of work in relation to occupational safety and health, he informed the Committee that the Government and the social partners had concluded an agreement this year on conditions of work, occupational safety and health and combating employment accidents. This agreement envisaged state support for the training and recruitment of occupational safety and health technicians, physicians and nurses. He added that the greatest possibilities for creating new jobs lay in the services sector. He expressed the hope that new skilled jobs, notably in pre-school teaching, as well as in tourism and the development of cultural policy.

Turning to the manner in which the National Employment Plan addressed the relationship between social protection and employment policy, the improvement of social dialogue, the development of partnership and the reduction in inequalities between men and women, he indicated that the Government's next report would also contain full information on these matters. He also emphasized that the issue of social protection influenced employment policy. He described three examples of recent measures: (a) the creation of a minimum income for families and persons on a low income, in exchange for which beneficiaries undertook to participate in training and accept suitable jobs with a view to their entry into the labour market; (b) the maintenance of unemployment benefits at a lower rate for the unemployed who took up part-time work; and (c) exemption from social security contributions for three years, without any reduction in the protection of the workers concerned, for employers who recruited young persons for their first job and the long-term unemployed.

Turning to social dialogue, initiatives had been taken in that area and two agreements had been concluded concerning employment, the labour market, education, training, occupational safety and health and measures to combat employment accidents. These agreements had been signed by all the trade union and employers' confederations which participated in social dialogue at the highest level. Negotiations had continued on the organization of work, productivity, wages and improvements to social protection. The National Employment Plan also focused on policies for equality of opportunities and measures to reconcile working and family life. He indicated that the Government would provide information on their results in future reports.

He said that the National Employment Plan was part of the inter-ministerial initiative to promote employment at the regional and national levels. The Plan was supplemented by regional plans adapting the measures to the specific features of the regions. Although Portugal was a country with a small territory, there were currently five regional plans, with a sixth envisaged during the course of the year.

Finally, with reference to methods for the evaluation of employment policy measures, their outcome and follow-up, he indicated that the implementation of the National Employment Plan was evaluated at the level of the European Community, which made it possible to identify any problems in the field of employment policy and to recommend to Member States the necessary measures to be adopted in subsequent years. At the national level, he stated that the implementation of the Plan envisaged its evaluation every six months by a permanent social dialogue commission on which the social partners were represented. One of the recent agreements on social dialogue included two measures to strengthen the relevant machinery: the existing Employment and Vocational Training Observatory, which was tripartite in composition, would be transferred to the authority of the Permanent Social Dialogue Commission, in which social dialogue agreements were negotiated and would strengthen the role of the Commission in evaluation and monitoring of the National Employment Plan; and a National Advisory Council for Vocational Training, also of tripartite composition, would be established and would undertake a global evaluation of vocational training, the structures which provided training and its follow-up. This body would also come under the Permanent Social Dialogue Commission.

He hoped that the information that he had provided clarified the aspects raised by the Committee of Experts concerning employment policy. He added that he had not provided statistical data, which would have been difficult without the necessary modern information technology in the room. Statistical data would be provided in the next report on the Convention. He expressed his willingness to provide the Committee with information on other aspects.

The Employer members thanked the Government representative for the information provided. They indicated that Convention No. 122 was a promotional Convention which had more to do with economic and labour market policies than with legal issues. For the benefit of the Committee of Experts, the Employer members prefaced their comments by indicating that they considered that there was a slight difference between the situation as described in the report and the information provided to the Committee by the Government. They hoped that this could be clarified in the future.

Portugal had ratified Convention No. 122 in 1981 and the Committee of Experts had made observations regarding Portugal's application of the Convention at least six times, primarily with regard to Article 1 of the Convention, whose objective of full employment was to be achieved through sustained economic growth. This goal remained valid today. The Government appeared to indicate that some progress had been made in this area and the Employer members noted that the Committee of Experts had also pointed to positive trends, such as employment growth, increased participation and a fall in unemployment for many categories of workers, as well as an improvement in the general state of the economy. It was clear, however, that changes in the structure of employment in terms of what constituted full, productive and freely chosen employment needed to be understood. These structural changes included new forms of flexible employment, a higher turnover of jobs and a growing trend towards shorter hours and flexible working time. The Employer members considered that part-time and temporary work was not a bad thing. These types of employment permitted low unemployment rates and low inflation to occur at the same time, while meeting the needs of the workforce in terms of accommodating the skill levels and lifestyle preferences of workers.

As was the case in most economies, there was a mismatch in the Portuguese labour market between the requirements of available jobs and the skills of available workers. The Government had indicated that the problem was the low level of education and training in the country, while the central trade union had indicated that the problem was underemployment. In the absence of a factual finding and in view of the Committee of Experts' request for additional information, the Employer members were puzzled that the Committee of Experts seemed to give credence to the unions' views. In fact, the Government had indicated that the overall skills base was skewing production towards low productivity and labour-intensive technologies. It was clear that the Government needed to supply additional information, but it was also clear that Portugal's path to full, productive and freely chosen employment involved measures such as a reduction of interest rates and fiscal deficits, as well as investment incentives to create more high-wage industries and full-time employment. The Government needed to develop investment policies that created higher wage jobs and skill development policies that included adapting training and education systems to improve the supply response to skill needs. The Government had talked of improvements to the education system and the development of a certified training system, but it also needed to be able to ascertain what skills would be needed on the labour market in the future, since there was often a lag between the skills needed and the jobs available.

With regard to the Committee of Experts' point concerning the National Action Plan for Employment, the Employer members considered that the Government had responded to some points, but not all. The Plan sought to improve the linkages between social protection and employment policies, social dialogue, partnerships with local development organizations and the promotion of gender equality. The Employer members considered that the Government's strategy lacked measures to improve the economic environment and competitiveness through tax policies, labour market flexibility and the reduction of costs. They therefore requested the Government to indicate the manner in which these factors had been taken into account.

With respect to Article 1 of the Convention, the Employer members nevertheless commended the Government's multidisciplinary approach in engaging a cross-section of agencies to promote national and regional employment strategies. Turning to Article 2 of the Convention, the Employer members noted that the Government had changed its statistical indicators from expenditures to actual results, and noted that this was a positive move. Up-to-date statistical data was essential for effective and timely adjustment of labour market policies. In conclusion, the Employer members considered that the Government was on the right track. Nevertheless, it needed to take those measures that led to economic growth, the creation of higher wage jobs and the upgrading of workers' skills.

The Worker members noted that this was the first time that Portugal had appeared before the Conference Committee and that the Government's regular compliance with its reporting obligations had allowed the Committee of Experts to make comments in a sustained manner since 1990, allowing the Conference Committee in turn to note the interesting developments made in regard to the application of this Convention, and to appreciate the efforts made by the Government in this respect. This year, the Committee of Experts had drawn attention to the application of Articles 1 and 2 of the Convention. While appreciating the Government's efforts and noting the positive influence of the economic situation, it had to be noted that the active employment policy had resulted for the large part in a rapid increase in the number of fixed-term contracts. This was not an isolated phenomenon and reflected present trends in the labour market, whereby the only value of employment was its immediate economic utility. This made it subject to the extreme demands of profitability. Well-known examples included the so-called "hamburger jobs", widespread in an increasing number of sectors in the United States and elsewhere, the use of contracts which were more than just flexible (which were in effect non-contracts) and, in view of the requirement for permanent availability, were akin to a modern version of slavery.

There had been a period in the past when this practice had been justified as a temporary measure, especially to allow disadvantaged younger workers to have access to employment. Today, and as the Worker members had always emphasized, the perverse risk of such a policy was that it not only affected young persons, but entire sectors of the active population. The generalized increase in flexible contracts had resulted in a growing precariousness of employment and especially in the social status of the workers involved, who were often women. Indeed, precarious work immediately made one think of precarious income and working hours, which were out of the control of workers and their families, as well as precarious social protection in terms of social security.

So-called "flexible" work was more aptly defined as "precarious" work, which had become a new scourge to modern society creating a duality in the labour market with, on the one hand, workers who often had to take on two jobs in order to survive, sometimes working for 15 or more hours per day, and, on the other hand, workers with stable and well-remunerated jobs. The Director-General's Report to the Conference examined the question of reducing the decent work deficit and emphasized in particular that "Access to work is the surest way out of poverty, ...". The trend towards more precarious employment was diametrically opposed to the legitimate aspiration to overcome poverty and gain access to dignity through employment. Moreover, it was necessary to measure the impact of precarity and its social and economic cost. Greater flexibility had resulted in society as a whole, and particularly workers, paying for the deficit in social protection, all in the name of so-called economic efficiency. The Worker members emphasized, as stated in the General Report of the Committee of Experts, the importance of the debate concerning Convention No. 122, which allowed fundamental questions to be addressed and new methods and policies in the field of employment to be identified. This debate should also allow the Committee to see the perverse effects of certain developments. Just as the trade unions in Portugal had stated in their observations to the Committee of Experts, the Worker members emphasized the importance of the question of the growing precariousness of labour which, on the one hand, appeared to be in contradiction with the terms of Article 1 of the Convention to promote "full, productive and freely chosen employment" and, on the other hand, did not correspond with the objectives of decent work as defined by the ILO in its current policy.

The Worker members requested the Government, in addition to the policies announced in the field of employment and vocational training policies, to provide information on the measures that it intended to take to combat precarious employment in the light of current labour market developments and to evaluate the impact of the policies, pursued.

The Worker member of Portugal referred to the relationship between employment promotion and social protection, which was of great importance for the General Confederation of Portuguese Workers. He added that the tripartite agreement concluded between the Government, employers and trade unions constituted a positive development for the labour market through the creation of structures to improve education and training. These measures made up for existing shortcomings. With reference to the revised National Employment Plan for 2001, his organization welcomed the improvements in relation to social protection. He considered that all of these agreements constituted considerable progress, even though frustrating deficiencies still existed. They were therefore only a first step. He emphasized that, when speaking of employment, the discussion should not be confined to standards-related policies, but should also take into account social issues such as protection in the workplace and working conditions, which were all essential factors in the life of workers. From this point of view, the situation in his country had worsened. One in every four workers was in precarious employment, with men over the age of 50, women and large numbers of young persons being principally affected. Many people were engaged in clandestine work, which provided no protection. He said that the Portuguese GDP of 2.2 per cent was the lowest in Europe, which meant that economic growth was not high enough to increase employment. In conclusion, he added that the CGTP was working intensively to achieve stable and well-paid employment and that its efforts in that field would continue.

The Worker member of France agreed with the statements made by the Worker members. He noted that Convention No. 122 was a very important Convention for workers, since paid employment was the only way for a worker to ensure decent living conditions for himself and his family. He indicated that the framework agreement concluded between the employers' and workers' organizations of the European Union regarding part-time work explicitly recognized that fixed-term, full-time and freely chosen contracts were the normal form of work. In relation to this, he noted that the Portuguese Government itself had recognized that, as emphasized by the CGTP, precarious employment was only growing when compared to permanent employment, and that it particularly affected women, young workers and part-time workers. This situation could be considered a form of discrimination in employment against these various categories of men and women workers.

He emphasized that Portugal was not a country where the rate of unemployment was particularly high. It was even fairly low when compared to other countries in the European Union. Nevertheless, the quality of jobs and the recognition of knowledge and skills were also important components of employment policy, if it was wished to motivate an increasingly skilled, but underutilized and underpaid, workforce. This situation did not encourage the improvement of skills, which Portuguese society and the economy desperately needed. It would only encourage young workers, notably the best qualified, to go to other countries in search of better recognition of their skills, thereby denying Portugal the indispensable human capital necessary for its development. Moreover, governments, as well as employers' and workers' organizations, had signed last February a tripartite agreement on education, training and employment. The objective, as the Government representative of Portugal had emphasized, was to develop a programme of action. He considered that bringing young persons and all workers in general up to the required level of training was a long-term task which required the necessary means. The recognition of qualifications and skills, and the quality of employment also needed to be taken into consideration in evaluating employment policy. Employment services should be fully and continuously involved in employment policy, taking into account all the parameters emphasized by the CGTP.

The National Action Plan for Employment in Portugal had been adopted within the context of the "Luxembourg" process, following which all the Member States of the European Union had agreed to adopt the National Action Plan with, among other objectives, the aim of harmonizing the different employment policies and exchanging information on good practices. It was necessary to encourage and to hope that laudable intentions of governments would soon be put into effect. He concluded by emphasizing that the majority of the governments of the European Union faced similar problems, some of them even more serious than those experienced by Portugal, and that these could be examined by the Committee.

The Government representative welcomed the statements made by the Worker and Employer members. He stated that he wished to make three observations. First, he confirmed the fact that his Government had sent the requested information within the appropriate deadlines. Second, with regard to the observations made by the Employer members, he indicated that his Government was aware that economic policy was an essential condition for sustainable employment. He noted that in his previous statement he had limited himself to referring to the aspects raised by the Committee of Experts and that he had not commented on Portugal's economic policy, since he considered that it was not appropriate to address it during the discussion. Third, he considered that precarious employment was an important issue but had considered that he should only respond to the issues raised by the Committee of Experts, which had made no reference whatsoever to precarity. He added that the Committee had not shared the criticisms made by the Central Union of Portuguese Workers (CGTP) on this issue; he added that figures and statistics would not be appropriate on this occasion.

Regarding workers and employment relations, he said that it would be necessary to undertake a critical evaluation of the difference between fixed-term and part-time contracts. He pointed out that the latter were not necessarily precarious. He added that it was important to take into account the difference between practice and the law. Portuguese law covered both short- and long-term contracts. This was in conformity with European Union guidelines and ILO standards. In relation to fixed-term contracts, he considered that Portuguese legislation addressed three forms of protection contained in the Termination of Employment Recommendation, 1982 (No. 166). He acknowledged that, in reality, transgressions existed, and that, according to the analysis made by the Government and the social partners, it was one of the aspects that made it necessary to promote the quality of employment. For this purpose, it would be necessary to strengthen monitoring to prevent abusive and illegal practices related to fixed-term contracts. Efforts should be continued to bring practice into conformity with reality.

He reiterated that part-time contracts were not necessarily precarious, but were voluntarily concluded between individuals in accordance with the current economic situation. He expressed his disagreement with the CGTP's view that individuals who accepted any form of working conditions did so to avoid unemployment. He did not deny that this could be true in certain situations, but added that part-time contracts were in conformity with Portuguese and European Union law, even if they were not widely used in Portugal, and despite the country having the lowest rates of part-time work in Europe. He stated that, at the level of the European Union, there were framework agreements on fixed-term contracts and part-time contracts, and that the Portuguese labour system was in conformity with the above system. He concluded by indicating that Portugal would send detailed information in due course.

The Worker members thanked the Government representative and urged the Government to provide information on the measures taken to evaluate trends related to precarious employment, and the measures that it proposed to take to rectify this harmful trend on the labour market.

The Employer members thanked the Government representative for his closing statement, highlighting that Convention No. 122 was about economics, not legal rules. They pointed out that, when this instrument was adopted by the ILO in 1964, the global economy had not yet arrived. Since that time, there had been unacceptable levels of unemployment and underemployment in labour markets in all regions. These problems had occurred against a background of rapid technological change and a growing integration of the world economy. As a consequence, the structure of work had changed and the job skills required no longer remained the same over a worker's lifetime. This new structure had led to higher personnel turnover, reduced working hours, flexible working hours and short-term contracts. This issue had been characterized by the Committee of Experts as one of precarious employment. However, the Employer members considered this to be a positive change, an opinion with which the Worker members disagreed. Nevertheless, given that the term "precarious employment" was perceived as a pejorative term, the Employer members requested that it not be used in the Committee's conclusions.

The Committee noted the information provided orally by the Government representative and the subsequent debate. The Committee requested the Government to continue making efforts, in consultation with the social partners, to improve the general level of training for employment and to improve the match between workers' skills and the jobs available. The Committee also noted the information provided on the changes in the structure of the labour market and the measures taken to promote employment and to improve the quality of certain categories of contracts. The Committee requested the Government to provide a detailed report for examination at the next session of the Committee of Experts to facilitate its assessment of developments in the situation.

Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

The Committee notes the observations of 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. The Committee notes the information provided by the Government regarding the series of measures taken during the reporting period to promote full, productive and freely chosen employment and decent work, including the series of exceptional measures taken to maintain employment contracts and mitigate the negative impacts of the COVID-19 pandemic on employment and businesses, including Law-Decree No. 23-A/2021, of 24 March, which established support measures for workers and businesses and Law-Decree No. 10-G/2020 of 26 March, which established temporary and exceptional measures to protect jobs in the context of the pandemic. The Government also refers to exceptional measures taken during the pandemic to support independent and informal workers and provide them with social protection. The Committee notes with interest the information provided by the Government on the positive results of the series of measures adopted and implemented to date on the labour market. With respect to employment trends, the Government reports that the overall employment rate stood at 69.4 per cent in the first trimester of 2018. Despite the negative impacts of the pandemic and the war in Ukraine on the labour market, employment rates began to rise again as of the second trimester of 2021, with the overall employment rate reaching 72.6 per cent by the first trimester of 2022. The Government highlights that the gap between the employment rates of men and women narrowed further during this period, particularly in the 25–35 year age group, where the difference fell to 0.8 percentage points. The overall unemployment rate fell from 8.1 per cent in the first trimester of 2018 to 5.9 per cent in the first trimester of 2022. The Government adds that underemployment fell by 24.5 per cent during the same period. Finally, the Government indicates that the rate of long-term unemployment fell by 2.7 per cent during the same period. In this context, the Committee also notes the conclusions of the 2023 Country Report of the European Commission on Portugal (the 2023 EC Report), indicating that as of 2022, the unemployment rate stood at six per cent, below the European Union and euro area average, while the employment rate among persons 20 to 64 years of age rose to 77.5 per cent, a historically high level. In its observations, the UGT-IN refers to positive developments in the Portuguese labour market from 2018 to 2020, citing employment growth and a reduction in unemployment. The workers’ organization indicates that important steps were taken during this period to address structural problems in the labour market, observing that the tripartite agreement signed in 2018 led to significant changes, including in the development of employment policies seeking to reduce precarious employment. Noting that the Government is expected to submit a new report in 2025 on the implementation of the provisions of the Convention, the Committee requests the Government to provide detailed updated information on trends in employment, unemployment and visible underemployment, as well as to provide information, including statistics disaggregated by sex, age and region of the country, on the nature, scope and impact of active employment measures taken to further the objectives of full, productive and freely chosen employment policies, in order to enable the Committee to take more fully into account the evolution of the Portuguese labour market and the progress achieved in both law and practice. In addition, the Committee requests the Government to continue to provide information on the manner in which it keeps under review the employment policies and measures adopted in order to pursue the objectives of full, productive and freely chosen employment (Article 2), in consultation with the social partners, as well as with representatives of the groups concerned by the measures taken or envisaged (Article 3).

Measures to promote employment among disadvantaged groups. Youth employment. The Committee notes the measures taken by the Government during the reporting period to promote employment and decent work among disadvantaged groups. With respect to young persons, the Committee notes the adoption in 2018 of Council of Ministers Resolution No. 114/A of 4 November, which approved the first National Plan for Youth (PNJ), as well as the adoption of a number of measures aimed at promoting access to employment for young persons aged 16 to 24. The Government indicates that, while the youth unemployment rate fell from 21.9 per cent in the first trimester of 2018 to 20.6 per cent in the first trimester of 2022, it nevertheless remained above pre-pandemic levels. It adds that young persons face structural challenges in terms of the school-to-work transition and are more likely to be in precarious employment, rendering them more vulnerable during periods of economic crisis. In this respect, the Committee notes the revision of the National Youth Guarantee Implementation Plan by Council of Ministers Resolution No. 188/2021 of 30 December, which aims to strengthen the response to challenges faced by young persons not in education or employment (NEETs), those furthest from the labour market and those with less qualifications, as well as to reinforce the synergies between the Institute for Employment and Vocational Training (IEFP) with local structures and programmes aimed at these groups of young persons. The IEFP also provides employment support to young persons through specific programs and incentives, such as ATIVAR.PT, Empreende XXI and SOU MAIS National Microcredit Program (PNM), which provide training and financial support to young persons for the creation of enterprises and jobs. The Committee further notes measures taken to promote employment and decent work for other disadvantaged groups facing challenges in the labour market, including the adoption of Council of Ministers Resolution No. 154/2018 of 29 November, which revised the National Strategy for the Integration of Roma Communities 2013–2020, extending the Strategy through 2022. The Strategy includes among its strategic objectives the elimination of discrimination against persons belonging to the Roma community—including discrimination between women and men in the community, and guaranteeing conditions for their access to education and lifelong learning and their full and equal participation in the labour market. The Committee also notes the series of measures taken to promote the employment of persons with disabilities, including the adoption of Law No. 4/2019 on the Quota for the promotion of employment for persons with disabilities, and Council of Ministers Resolution No. 119/2021 of 31 August, approving the National Strategy for the Inclusion of Persons with Disabilities 2021–2025. The Committee particularly notes the focus in the National Strategy on the need to address intersectional discrimination against persons with disabilities who also belong to other groups facing challenges in accessing the labour market, such as: women and girls; migrants and refugees; LGBT+ persons and members of the Roma community. The Committee requests the Government to provide detailed updated information in its next report regarding the nature, scope and impact of measures taken to reduce youth unemployment, including statistical information disaggregated by sex, age and region of the country. In addition, the Government is requested to provide updated information regarding measures taken to reduce precarious employment of young persons through the creation of opportunities that enable young women and men, including those belonging to other disadvantaged groups, to access lasting employment and decent work. The Committee also requests the Government to provide updated information on the nature and measures taken with regard to other disadvantaged groups who face difficulties in accessing and remaining in employment, such as older workers, persons with disabilities, migrants, refugees and the long-term unemployed.

Education and training policies and programmes. The Government reports that, as of the first semester of 2022, 35 per cent of the economically active population had a basic level of education, while 30.6 per cent had secondary and post-secondary education level and 34.3 per cent a higher education level. The Committee notes that, according to the 2023 EC Report, Portugal continues to face a structural skills deficit in the adult population, with a large share of persons (40 per cent as of 2021) who have not completed more than lower secondary education, as well as skills mismatches, in that the technology and innovation intensive sector, because of its small size, absorbs only a fraction of the available high-skilled workers. In this context, the Committee notes the adoption of a Plan of Action for the Digital Transition (Council of Ministers Resolution No. 30 /2020 of 21 April), whose objectives include strengthening the digital skills of the Portuguese population, to promote their employability and social inclusion. It also notes vocational training programmes for young persons, such as the Youth + Digital Programme, which provides young persons with training aimed at digital skills acquisition, UPSkill, and Apprenticeship +, which provides job retraining courses aimed at young persons up to 29 years of age. The Committee also notes the adoption of Ordinance No. 179/2021 of 27 August, which established the Certificate Program in digital skills (open to 18–35 year olds registered with the IEFP). The Government further notes the creation in 2021 of a network of 17 Social Employment Incubators in the different regions of the country which, under the auspices of the IEFP, provides support to unemployed persons to develop their digital and job search skills. Additionally, the Government refers to a series of programs to provide education and training, including internships under the ATIVAR.PT program, which also offers financial incentives to enterprises who hire former interns on permanent contracts. The 2023 EC Report refers to the objectives of the Recovery and Resilience plan for Portugal, approved in 2023, which aim to address existing challenges, including in the area of education and skills. The Committee requests the Government to provide updated information, disaggregated by sex and age, with respect to the number of persons benefitting from the training programs provided by the Institute for Employment and Vocational Training, particularly the digital training program, and the impact of the education and training on their access to lasting employment and decent work. It further requests the Government to provide information on measures taken under the Recovery and Resilience Plan relevant to the provisions of the Convention, including in education, skills development and lifelong learning.

Job creation in small and medium-sized enterprises (SMEs). The Committee notes the information provided by the Government relating to measures taken to create and improve a conducive environment within which SMEs can grow and thrive, thereby creating opportunities for decent jobs. In this respect, it notes the conclusions of the 2023 EC Report that SME growth in Portugal is hampered by low investment in research and development and digital uptake, with SMEs facing many challenges in digitalization. In this context, it notes the information provided by the Government regarding the creation in 2021 of a network of 17 Social Employment Incubators in the different regions of the country which, under the auspices of the IEFP, provide support to unemployed persons to develop their digital and other skills, as well as their job search skills. The Committee requests the Government to continue to provide information on the nature and impact of the measures taken to improve the business environment in order to promote the creation and development of SMEs and create quality jobs for unemployed persons, particularly with respect to young persons and other disadvantaged groups.

Judicial decisions. The Committee invites the Government to continue to provide copies of judicial decisions relevant to the application of the provisions of the Convention.

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

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.

Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

Follow-up to the discussion at the Committee on the Application of Standards (International Labour Conference, 103rd Session, May–June 2014)

The Committee notes that, during the tripartite discussion, the Government submitted labour market information showing that the unemployment rate had declined from 17.5 per cent in the first quarter of 2013 to 15.1 per cent in the first quarter of 2014. The Government intends to improve the operation of the public employment service and continue to implement active labour market measures, particularly oriented to young people, such as the Youth Guarantee Programme. The Committee notes that important labour market challenges remain, in particular the need to create employment opportunities for the unemployed, the development of small and medium-sized enterprises (SMEs), and the coordination of education and training policies with the employment needs of workers most affected by the crisis. The Committee refers again to the Oslo Declaration “Restoring confidence in jobs and growth”, adopted at the Ninth European Regional Meeting (Oslo, 8–11 April 2013), which states that fiscal consolidation, structural reform and competitiveness, on the one hand, and stimulus packages, investment in the real economy, quality jobs, increased credit for enterprises, on the other, should not be competing paradigms. The Committee therefore invites 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 (Articles 2 and 3 of the Convention). The Committee wishes to draw the Government’s attention to the fact that the Office could contribute, through technical assistance, to address the employment situation in the context of the Convention.

The Committee refers to its 2013 observation and invites the Government to submit information regarding the impact of the measures taken to improve qualification standards and coordinate education and training policies with employment opportunities, to reduce youth unemployment and to facilitate the return to the labour market of those categories of workers most affected by the crisis. Please also include information on the measures taken to facilitate employment creation by small and medium-sized enterprises.

Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

Measures to alleviate the impact of the crisis. The Committee notes the report provided by the Government for the period ending in May 2012, including observations from the General Workers’ Union (UGT) and the General Confederation of Portuguese Workers–National Trade Unions (CGTP–IN). In reply to the previous comments, the Government indicates that the four most representative employers’ organizations and one of the two most representative trade union confederations accepted the changes to the Labour Code. Agreements between the Government and the social partners include the Tripartite Agreement for Competitiveness and Employment (2011) and the Commitment to Growth, Competitiveness and Employment (2012). In its previous observation, the Committee invited the Government to provide information allowing an assessment of the manner in which the reduction of labour costs has permitted the creation of productive and quality jobs. The Government indicates that the reduction of some labour costs due to the changes introduced by the revision of the Labour Code, and in particular as a result of the revision in 2012, are the result of legislation subsequent to the reporting period and it will only be possible to evaluate the respective effects later. The Government indicates that, in the reporting period, the principal component of the framework of government policies is the Economic Adjustment Programme, following an agreement with the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF). The Committee notes that a joint EC, ECB and IMF mission met with the Government in the first half of 2013 to assess compliance with the terms and conditions set out in the Memorandum of Understanding. The mission concluded that the programme implementation is broadly on track, against the background of difficult economic conditions. According to the data of the Employment and Vocational Training Institute (IEFP), the number of unemployed persons registered with the employment centres at the end of the first quarter of 2012 rose to roughly 661,400 persons (51.2 per cent of whom were women). This number reflects an increase of 9.3 per cent compared to the fourth quarter of 2011 and 19.8 per cent compared to the first quarter of 2011. With respect to active employment measures (employment, vocational training, professional rehabilitation), the Government reports that 466,172 people were covered by measures implemented by the IEFP in 2010, 455,119 in 2011, and 146,561 from January to March 2012. The majority of individuals covered by the active employment measures implemented by the IEFP during the reporting period were women (roughly 60 per cent), and the largest percentage of individuals covered by these measures was from 25 to 34 years old (over 25 per cent of all individuals covered), followed by individuals from 35 to 44 years (roughly 23 per cent) and individuals up to 24 years old (also roughly 23 per cent). The Committee notes that the unemployment rate worsened significantly, rising from 12.4 per cent in the first quarter of 2011 to 15.2 per cent in the first quarter of 2012. The Committee notes that the unemployment rate continued to rise after the reporting period. In June 2013, unemployment was higher than 17 per cent. The UGT states that it is important for employment policies to aim to promote jobs, but quality jobs, with new and improved working conditions. In this context, the UGT indicates that it has advocated that the Government and the social partners should pay more attention to active employment policies and reorient them so that they are able to more effectively and more efficiently address existing issues and weaknesses. The Committee further notes the observations of the CGTP–IN stating its view that the Government is not implementing the necessary measures to meet the objectives of the employment policy to which the Convention refers, especially with respect to full and freely chosen employment. The CGTP–IN indicates that the revision of the Labour Code will not solve the employment problem. Instead, the problem will worsen in that it contains measures that, besides cutting workers’ pay and hours, may cause unemployment to rise. The CGTP–IN further indicates that offers for available jobs are increasingly insecure even for permanent and poorly paid jobs, including for highly qualified individuals and the public employment services do not perform any quality analyses. In a context of austerity policies, in which joblessness is on the rise and social protection is on the decline, unemployed workers are increasingly forced to accept undignified and insecure jobs with low wages that are not on par with their qualifications. The Committee considers that the outcome of the Ninth European Regional Meeting (Oslo, 8–11 April 2013) is relevant to the application of the Convention in Portugal. It notes that the Oslo Declaration “Restoring confidence in jobs and growth” stated that fiscal consolidation, structural reform and competitiveness, on the one hand, and stimulus packages, investment in the real economy, quality jobs, increased credit for enterprises, on the other, should not be competing paradigms. The Committee expresses its concern at the deterioration of the employment situation since its previous observation made in 2011. The Committee therefore invites the Government to indicate in its next report the measures taken to review, with the participation of the social partners, the impact of the employment measures adopted to address the jobs crisis (Articles 2 and 3 of the Convention). The Committee wishes to draw the Government’s attention to the fact that the Office could contribute, through technical assistance, to address the employment situation in the context of the Convention.

Measures to promote employment among vulnerable categories of workers. The Committee notes the high unemployment figures for young persons. The Government reports that the annual average youth unemployment rate in 2011 was 30.1 per cent (28.7 per cent for women and 31.7 per cent for men). In the first quarter of 2012, the rate increased to 36.2 per cent (36.6 per cent for women and 35.8 per cent for men). The Government indicates that the measures intended for the most vulnerable workers covered 156,911 individuals from January 2010 to April 2012. The Committee asks the Government to include in its next report indications that will enable it to examine the quality of employment provided for young people and the measures taken to reduce youth unemployment. Please also include up-to-date information on the impact of the measures taken to facilitate the return to the labour market of those categories of workers most affected by the crisis.

Creation of jobs in small and medium-sized enterprises (SMEs). The Government reports that the Programme to Support Entrepreneurship and the Creation of Self-Employment (PAECPE) includes measures to support the creation of businesses. Support for the creation of self-employment by beneficiaries of unemployment benefits, which involves paying unemployment benefits in advance for the purpose of creating self-employment, covered 2,588 people in 2010 and 2,819 in 2011. The Committee invites 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.

Education and training policies. The Government indicates that it has adopted several measures for linking programmes between the New Opportunity Centres, a network run by the National Agency for Qualification and Vocational Education Training (ANQEP), and the Employment and Vocational Training Institute (IEFP). Moreover, mechanisms were also defined to ensure the coordination of training policies with employment policies as follows: (i) implement mechanisms to adequately link the vocational training centres, the employment centres, companies and corporate associations and other economic development agents for the purpose of better matching the supply of vocational training with present and future job market requirements; and (ii) introduce indicators on the requirements of the labour market and the employability of trainees using the weighting criteria for financing the participating management centres. The Committee asks the Government to include in its next report up to date information on the measures taken to improve qualification standards and coordinate education and training policies with potential employment opportunities. The Committee hopes that the information sent by the Government will enable it to examine the manner in which efforts have been intensified, with the cooperation of the social partners, to ensure that vocational guidance and training systems meet the learning and vocational training needs of the most vulnerable groups in the country.

Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Implementation of an active employment policy. Articles 1, 2 and 3 of the Convention. The Committee notes the report provided by the Government for the period ending May 2010, with contributions from the General Union of Workers (UGT), the Confederation of Trade and Services of Portugal (CCSP) and the Portuguese Confederation of Tourism (CTP). In its observation in 2009, the Committee invited the Government to provide information on the manner in which the difficulties encountered in attaining the objectives of the Convention had been overcome, and particularly on the effects on the labour market of the February 2009 reform of the Labour Code. The Government recalls that, with a view to overcoming the global financial and economic crisis, the “investment and employment” initiative (Act No. 10 of 10 March 2009) was launched to promote public investment projects in critical areas for the modernization of national infrastructure (school infrastructure, renewable energy, information technology), including measures to facilitate exports by small and medium-sized enterprises. In January 2010, the Government launched an “employment initiative” (Council of Ministers Decision No. 5/2010 of 29 January 2010) to maintain employment levels, facilitate the entry of young persons into the labour market and combat unemployment. Furthermore, to follow up the tripartite agreement concluded in June 2008, the Government had adopted new contractual arrangements, adjusted unemployment benefits and taken other measures to promote employment. Agreement was reached with the social partners on combating precarious employment and the segmentation of the labour market and improving the quality of employment. The reforms of the Labour Code were intended to strengthen the legal presumption of the existence of an employment contract and prevent dependent employment relationships being hidden by means of “false green receipts”, which prejudiced workers and state revenue. The measures adopted included limiting the renewal of fixed-term contracts and promoting the use of a simple form to legally challenge dismissal. According to the data published by the Employment and Vocational Training Institute (IEFP), in 2010 a total of 181,115 persons benefited from employment and placement programmes, around 340,000 persons had received vocational training and 11,718 retraining (similarly, in 2009, almost 173,000 persons benefited from employment and placement programmes, 344,155 persons from vocational training and 17,103 from retraining). The Committee notes that in January 2011 a total of 557,244 unemployed persons were registered with the employment centres, showing a small decrease in the number of unemployed (of 0.5 per cent) in relation to January 2010. Nevertheless, despite this slight improvement, unemployment had increased for 27 consecutive months. The unemployment rate rose from 7.6 per cent in 2008 to 9.5 per cent in 2009, reaching 10.8 per cent in 2010. Taking into account changes in the statistical methodology, it is projected that the unemployment rate will be higher than 12 per cent in 2011. In view of the worsening nature of the debt crisis, in May 2011 the Government received the support of the European Financial Stability Mechanism and submitted a Memorandum of Economic and Financial Policies to the International Monetary Fund with the intention of restoring market confidence and increasing the potential of the national economy to generate socially balanced growth and employment. The Government plans to create new jobs, particularly for youth. Furthermore, the Government indicates its readiness, in consultation with the social partners, to reform the employment protection legislation to foster flexibility and improve equity, and to ensure that labour costs support job creation and competitiveness. Although it was decided to suspend public works and reduce the number of public employees, the Committee understands that the Government is also proposing to continue implementing active measures to support the labour market, improve the employability of young persons and other vulnerable categories of workers and ease labour market mismatches. While being aware of the burden of structural adjustment, the Committee emphasizes the importance of continuous and genuine tripartite consultations in confronting and mitigating the effects of the crisis (paragraph 788 of the 2010 General Survey concerning employment instruments). In this respect, the Committee invites the Government to provide information in its next report demonstrating that the opinions of the social partners have been taken into account in the adoption of measures intended to increase labour market flexibility. The Committee also requests the Government to provide information allowing an assessment of the manner in which the reduction of labour costs has permitted the creation of productive and quality jobs.

Measures to promote employment among vulnerable categories of workers. In its report, the Government recalls the measures specifically intended for unemployed workers over 55 years of age and those adopted in respect of the “integration employment” and “integration employment+” contractual arrangements (envisaged in the tripartite agreement of June 2008). According to the IEFP analysis, in December 2010, the majority of the unemployed were women between 35 and 54 years of age. Taking into account the importance of the employability of young and disadvantaged categories of the population in the new adjustment measures proposed in May 2011, the Committee once again requests the Government to include updated information in its next report on the results achieved by the measures intended to promote employment opportunities for all vulnerable categories of workers.

Creation of jobs in small and medium-sized enterprises. The CCSP emphasizes the positive contribution of the meetings held periodically of the Technical Support Group for the National Employment Plan in the context of the Economic and Social Council. The CCSP expresses its conviction that the future of employment policy will depend on the improvements that are made in the coordination of the various national policies, on giving greater importance to measures intended to promote the creation of self-employment and on improving the evaluation of the impact of the measures adopted on employment levels. The CCSP also emphasizes the need to review the measures adopted so as to allocate resources more effectively and obtain a positive return on the investments already made in employment. The CCSP also reports the difficulties encountered by most Portuguese enterprises, which are small or micro-enterprises, and are not able to organize their work so that one or more of their workers can benefit from training schemes. Small-enterprises and micro-enterprises should be provided with specific training taking into account the very small number of their workers. The Government recalls in its report the specific training measures adopted aimed at small enterprises. The Committee invites the Government to indicate in its next report the measures adopted which have been successful in facilitating the activities of micro- and small enterprises for the creation of productive employment.

Education and training policies. In its previous comments, the Committee emphasized the concern of trade union organizations concerning the school drop-out rate among youngsters and the decline in the participation of adult workers aged between 25 and 65 years in further training. In its report, the Government refers to the establishment of a tripartite support commission for the initiative Novas Oportunidades and the National Qualification System (SNQ). Enterprises are now under the obligation to provide quantitative data on the continuous training of workers in their annual reports. In the Memorandum on Economic and Financial Policies submitted to the IMF in May 2011, the Government acknowledged the need to continue taking action to tackle low educational attainment and early school leaving and to improve the quality of secondary education and vocational education and training, with a view to increasing efficiency in the education sector, raising the quality of human capital and facilitating labour market matching. The Committee once again requests the Government to provide updated information in its next report on the measures adopted to coordinate education and training policies with employment policy, the necessity for which has become more acute in the current context of structural adjustment.

Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

Articles 1, 2 and 3 of the Convention. Implementation of an active employment policy. The Committee takes notes of the detailed report provided by the Government for the period ending May 2008 which contains comments from the General Confederation of the Portuguese Workers – National Trade Unions (CGTP-IN) and the General Workers’ Union (UGT). In its previous observation, the Committee asked for information on the manner in which the employment objectives of the National Action Programme for Growth and Employment 2005–08 (PNACE) have been obtained, particularly in terms of reducing the number of long-term unemployed and improving the efficiency of the employment services. According to the CGTP-IN, there has been no improvement in the employment situation since the adoption of the PNACE, as economic growth is still far below the EU average and the employment rate has been progressively rising. The CGTP-IN points out that the precariousness in employment was also on the rise as non-permanent contracts increased, rising from 19.8 to 22.4 per cent. Referring to the process of restructuring undergone by enterprises to adapt to increasingly globalized markets, the UGT stresses the importance of creating joint committees to follow up upon the implementation of agreements, in particular as regards employment planning and personnel training plans, so that representatives of workers may participate more effectively in the restructuring process. While recognizing that the overall unemployment rate has showed a rising trend since 2001, the Government underlines that long-term unemployment decreased in 2007, which confirmed the effectiveness of the measures specifically targeting young persons, and adults, and are being implemented to modernize the public employment services. The Committee notes with interest the Tripartite Agreement on a New System of Labour Regulations, Social Protection and Employment in Portugal, signed on 25 June 2008, which envisages the adoption of active employment measures to facilitate the transition from unemployment to employment, namely for long-term unemployed and workers from disadvantaged groups. The Committee notes that the Tripartite Agreement also provided for a reform of the Labour Code in order to modernize employment protection by introducing greater flexibility in the employment relationship and that this reform has been adopted through Law No. 7/2009 of 12 February 2009. The Committee notes with interest that the objectives of full and productive employment were set forth in the tripartite agreements. The Committee invites the Government to provide information in its next report on the extent to which the difficulties encountered in attaining the objectives of the Convention have been overcome and on the effects of legislative and other measures adopted to improve employment security for workers who have benefited from the provisions of Act No.7 of 2009.

Measures to promote employment among vulnerable workers. The CGTP-IN states that the employment situation has further deteriorated for disadvantaged workers. Unemployment among women is increasingly higher than among men, especially long-term unemployment, and significant inequalities still exist between men and women in the labour market. The CGTP-IN also indicates that unemployment and precariousness in employment among young persons and migrant workers has been rising since 2004, whereas the percentage of Portuguese workers leaving the country to work abroad has increased. In its report, the Government describes in detail the measures implemented for particularly disadvantaged categories of workers, such as women, young persons, older workers, persons with disabilities, socially excluded groups and immigrants. The Committee invites the Government to include updated information in its next report on the results achieved by the measures adopted to promote employment for vulnerable categories of workers, with particular regard to the implementation of the relevant provisions of the Tripartite Agreement of 25 June 2008.

Education and training policies. The CGTP-IN states that adolescent school drop-outs have decreased only slightly between 2004 and 2007 and that only 52.9 per cent of youngsters aged 20 to 24 had attained secondary education levels in the second semester of 2007. Participation of adult workers aged 25 to 65 in continuous training had declined as the Government did not take measures to ensure the observance of the legislation allowing workers to benefit from a minimum of 35 hours of vocational training every year. The CGTP-IN also reports that workers with higher qualifications still have greater access to continuous training than low-skilled workers. The Government refers to the adoption of the Tripartite Agreement on the Reform of Vocational Training concluded on 14 March 2007 with the aim, among others, of creating the conditions needed to attain the objectives of the initiative Novas Oportunidades, namely increasing the secondary-school enrolment rate and improving youth and adult qualifications. The Committee welcomes the information provided in the Government’s report on the application of the Human Resources Development Convention, 1975 (No. 142), and asks the Government to continue to provide updated information on the measures taken to coordinate education and training policies with employment in the context of the recent reform of vocational training, with particular reference to the implementation of the right to training provided under the Labour Code.

Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

1. Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Committee notes the Government’s report for the period ending in May 2006 which contains observations from the Portuguese Confederation of Tourism and the General Union of Workers (UGT). According to the UGT, unemployment has been rising since 2004, reaching 8 per cent in 2005. Industrial jobs have been lost because of bankruptcies, restructuring and delocalization. The Government states that the National Employment Plan
2005–08 (PNE) is an integral part of the National Action Programme for Growth and Employment (PNACE), which ensures coordination of the various programmes and action plans that affect growth and employment. The PNACE aims to increase economic growth and job creation through coordinated and coherent macroeconomic measures (consolidation of public finances, modernization of the administration), microeconomic measures (technology plan to encourage innovation) and measures in the area of employment and qualifications. Under the PNE, in 2005 the Government launched the initiative Novas Oportunidades, as a means of increasing the secondary school enrolment rate and improving youth and adult qualifications. In the area of qualifications, employment and social cohesion, the objectives of the PNACE include promoting job creation, and attracting more people to, and keeping them in, employment by forestalling and combating unemployment, particularly youth and long-term employment. The Committee further notes that flexibility with job security is to be promoted in the context of strengthened social dialogue and consultation. The Committee asks the Government in its next report to provide information on the manner in which the PNACE employment objectives have been obtained and on the results of the measures to reduce the number of long-term unemployed and improve the efficiency of the employment services. The Committee asks that the report also contain information on the manner in which the Government has consulted the social partners in adopting the abovementioned measures.

2. Measures to promote employment among certain categories of workers. The UGT states that there are still significant inequalities between men and women in the labour market and that youth unemployment is still high (16.4 per cent). The Government states that it is planning to set up special employment programmes for groups of the active population that are particularly disadvantaged in the labour market, such as young people, older workers, persons with disabilities, socially excluded groups or groups liable to social exclusion, and immigrants, together with region- or sector-based programmes as required. The Committee requests the Government to provide information on any programmes under implementation to promote employment among these special categories of workers, and on the results obtained in terms of job creation.

3. Article 3. Participation of the social partners in the framing and implementing of policies. In its report, the Government refers to two agreements concluded with the social partners: the agreement of 7 January 2005 to reinvigorate collective bargaining and the agreement of 8 February 2006 on vocational training. The Committee requests the Government to provide detailed information in its next report on the tripartite consultations that have been held on employment policy as required by the Convention.

Observation (CEACR) - adopted 2004, published 93rd ILC session (2005)

1. The Committee notes the Government’s report for the period June 2002 to May 2004 including the observations from the General Confederation of Portuguese Workers (CGTP) and the General Workers’ Union (UGT). It also notes the discussion on the application of this Convention in the Committee on the Application of Standards at the 91st Session (June 2003) of the Conference. The Committee notes that, in a context of recession, the employment situation has deteriorated significantly during the period at issue, with an OECD standardized unemployment rate of 6.4 per cent in 2003, compared to 5.1 per cent in 2002 and 4.1 per cent in 2001. At the same time, however, the share of long-term unemployment has continued to decline from 38.1 per cent of all unemployed in 2001 to 32 per cent in 2003. The Government points out that, in spite of the deterioration of the employment situation, the unemployment rate is still among the lowest in the European Union. The Government further notes that, although the employment rate decreased to 67.1 per cent in 2003, it remains above the target for the European Employment Strategy for 2005 and the gap between men and women is narrowing in so far as the loss of employment has affected men to a larger extent. The Committee notes that part-time work, two-thirds of which is carried out by women, amounted to 10 per cent of total employment in 2003.

2. General and sectoral economic policies. The Government refers in its report to the Programme for Productivity and Economic Growth, adopted in July 2002, covering a set of planned economic reforms. It aims at stimulating job creation, including measures to encourage the entrepreneurial spirit, stimulate innovation and the knowledge society and simplify administrative and regulatory procedures related to the creation and operation of companies. Further, the Recovery Programme for Depressed Areas and Sectors, adopted in March 2003, introduced a set of measures to contribute to reducing the economic and social imbalances among the regions, including public sharing in the costs for maintaining jobs in the case of acquisition of companies in serious financial difficulty. In the view of the CGTP, however, the Government is not taking the necessary measures to achieve the employment policy objectives of the Convention. In its view the Government bears considerable responsibility for the worsening of the economic crisis as its economic policy has been centred on reducing the budget deficit and containing domestic procurement, holding wages down, and reducing the purchasing power of civil servants. In this context the Committee recalls that pursuant to the Convention, measures to be adopted for attaining the employment objectives shall be decided on and kept under review, "within the framework of a coordinated economic and social policy" (Article 2, paragraph (a), of the Convention). The Committee asks the Government to detail in its next report the manner in which the main macroeconomic policy elements - such as monetary and budgetary policies, and policies related to prices, incomes and salaries - contribute to the promotion of employment.

3. Labour market and training policies. The Government states that the National Action Plan for Employment for the period 2003-06 gives priority to the prevention of long-term unemployment and the strategy for lifelong learning. It refers to measures taken to encourage: early retirement among unemployed workers above 58 years; vocational training for the unemployed; and geographical and professional mobility. It also outlines the forthcoming implementation of a multi-year vocational training plan in close cooperation with employment centres. The CGTP asserts that a more systematic evaluation of the active employment measures is called for. The Committee requests the Government to report on how the measures it describes contribute to an effective and durable integration into employment of the beneficiaries of these measures, and to indicate the data on which it has relied in making this assessment. The Committee also notes that the CGTP is concerned about the effect on job security of the amendments introduced in labour law. It refers, inter alia, to the introduction of fixed-term contracts for up to six years which it asserts will lead to increased precariousness of employment and decreased attention to the need for vocational training of workers. The Committee requests the Government to describe in more detail the anticipated and actual impact on employment and skills of the measures taken to increase labour law flexibility.

4. Consultation of the representatives of the persons affected. As a follow-up to the discussion in the Conference Committee, the Government emphasizes in its report that consultation with the social partners on the different aspects of employment policy is ensured not only at the national level but also at the regional level through their participation in the advisory councils in vocational training centres and vocational training institutions, as well as in the group for the technical follow-up to the national employment plan. It also states that, since June 2003, contacts are under way to conclude a "Social contract for competitiveness and employment" with the social partners. In this context, CGTP regrets that some of the measures foreseen in the Agreement on Employment, Labour Market, Education and Training Policy, signed in February 2001, have not been acted upon, and is of the view that the tripartite follow-up to the implementation of this agreement is insufficient. The Committee asks the Government to report on all new measures that may have been carried out to ensure that the representatives of the persons affected by the measures to be taken cooperate fully in the formulation of employment policies and assist in enlisting support for such policies, as called for in Article 3 of the Convention.

Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

1. The Committee notes the information contained in the Government’s reports for the periods June 2000 to May 2002, as well as the attached documents and statistics. It also notes the comments sent by the General Confederation of Portuguese Workers (CGTP-IN) and the General Workers’ Union (UGT).

2. Articles 1 and 2 of the Convention. The Committee notes the detailed disaggregated statistics on trends in the labour market. The active population grew at an annual rate of 1.4 per cent to the first quarter of 2002, and employment increased by 1.1 per cent. The activity rate for the same period increased slightly to 51.8 per cent, while the employment rate decreased slightly to 68.6 per cent. Unemployment rose slightly to 4.4 per cent overall, with 3.7 per cent for men and 5.3 per cent for women. Long-term unemployment fell by 5.7 per cent, with an 8.8 per cent decrease for women. However, there was also significant growth in the use of temporary contracts. Growth of employment was mainly in services and construction, while employment declined in agriculture and industry.

3. The Government also provides information on: the review of the National Employment Plan (PNE) in 2001; the impact of the European Employment Strategy (EES); various programmes; and an evaluation of the services provided by the employment centres. In light of the reviews, the Government intends to maintain the direction set out in the PNE of 2001 and the EES. The PNE will be closely linked to the Lifelong Learning Strategy. The objectives for the near future include improving the quality of employment and social protection, and adapting labour legislation to improve productivity and competitiveness. The Government has also prioritized combating illegal employment and monitoring the use of fixed-term contracts. The Committee notes this information and would appreciate being kept informed of the impact of the measures adopted in the framework of a coordinated economic and social policy, to implement an active employment policy in the sense of the Convention.

4. Article 3. The Committee notes that the review of the PNE involved the social partners. It also notes the statement by the UGT confirming the contribution of the social partners, in particular to new legislation on various subjects related to employment promotion; and the confirmation of the CGTP-IN that the EES is developed on a tripartite basis. Please continue to provide detailed information on the manner in which representatives of all groups concerned, including rural and informal economy workers, are consulted on the formulation, implementation and review of employment policies and programmes.

5. The UGT considers that, despite the efforts of the Government, structural problems still persist in employment and training. Problems persist with young jobseekers entering the labour market, in particular skilled youth. For less skilled youth, training is not sufficiently available. Older workers do not have access to retraining, increasing their likelihood of being unemployed long-term. The UGT stresses the need for continuous training, guaranteed access to training for all workers, and ensuring that training is relevant to the skills demanded in the labour market. Lastly, the UGT draws attention to the problems of regional differences in employment.

6. The CGTP-IN notes the decline in employment in various sectors of the economy. It is also concerned about the increase in unemployment for women and continued gender segregation by sector and occupation. It questions the success of the Government’s active labour market policies and training measures, and notes that some of the recommendations that came out of the reviews were not followed up. Lastly, the CGTP-IN supports the general strategy of the Government concerning lifelong learning, but questions the logic of restricting evening classes in light of the objective of equality of opportunity.

7. The Committee notes these detailed observations of the UGT and the CGTP-IN, as well as the Government’s replies, which were incorporated in its report. Recalling that the Committee, at the 89th Session of the Conference, June 2001, asked the Government to continue making efforts, in consultation with the social partners, to improve the general level of training for employment and the match between workers’ skills and jobs available, the Committee would appreciate receiving more details in future reports concerning ways in which the Government and the social partners have addressed the matters noted in this observation.

Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the discussion of the Conference Committee, which took place during the 89th Session of the Conference (June 2001). It also notes the information contained in the Government’s report, received in October 2001, which included comments supplied by the General Confederation of Portuguese Workers (CGTP-IN) and the General Workers’ Union (UGT). The Committee will examine the Government’s report and the comments of the organizations during its upcoming session, and welcomes any additional information that the Government may wish to provide.

Observation (CEACR) - adopted 2000, published 89th ILC session (2001)

Article 1 of the Convention.  The Committee notes the information contained in the Government’s detailed report. In particular, it notes the improvement in the general state of the economy, and the positive trends in employment growth, increased participation, and decreased unemployment for many categories of workers. The Central Union (CGTP) states that the Government has made some progress, but it does not agree with the Government’s focus on active employment policies. The CGTP also considers that there has been an increase in the precariousness of employment. The Government agrees with the CGTP that there has been an increase in non-permanent contracts, particularly affecting young workers, women, and part-time workers. However, it points out that there has been modest but positive growth in permanent contracts, from which women have benefited the most.

The Government states in its report that one of the main structural problems is the generally low level of education and training, which is discouraging further private investment in training. In addition, the CGTP points out that there are problems of mismatch between skills and available jobs in the labour market, resulting in young people being forced to accept jobs for which they are overqualified. In response, the Government has implemented several measures to increase the general level of skills, and to improve coordination between supply and demand. The Committee would appreciate receiving further information on the outcome of these measures, as well as other measures to stimulate appropriate employment for higher-skilled workers.

The CGTP also points out that the employment created is generally of low quality, and is concerned that the labour market is splitting between high and low skilled workers, on the one hand, who are able to find employment more easily, and medium-skilled workers who are having more difficulties. The Government also states that the low skills base is skewing production towards low-productivity labour-intensive technologies which result in lower wages. However, it has set new targets for information and communication technology (ICT) training in at least 50 per cent of continuing training courses, and is taking steps to encourage firms to invest in new technologies. The Committee requests further information on the outcome of this strategy.

The Government also states that the National Action Plan for Employment (NAP) 1998-2002 will improve linkages between social protection and employment policies, improve social dialogue and partnerships at various levels, create partnerships with local developmental organizations, and aim to reduce gender-based inequalities. Furthermore, the NAP will develop, test and spread good practices at the micro level. Numerous measures have been taken to carry out these goals. The Committee notes these measures with interest and requests further information on their outcome.

Lastly, the Committee notes with interest the Government’s efforts to engage a cross-section of several ministries to promote employment, and to develop both national and regional strategies. Included are the Ministries of Economic Affairs, Finance, Planning, Education, Science and Culture, Equal Opportunity, Reform of State, and Youth. Please provide further information on progress made in this respect.

Article 2.  The Committee notes with interest that the Government has changed its monitoring indicators, from a focus on expenditures to a focus on results. Evaluations are scheduled every six months, and carried out by a tripartite working group on technical monitoring of the NAP. For its part, the CGTP considers that there is no follow-up to some evaluations; it would like to see a permanent system of evaluation established, with greater efforts made by the employment service to monitor employment trends within its competence. The Committee would appreciate receiving further information on the evaluation methodologies developed, on the outcomes, and on the follow-up action taken.

Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

1. The Committee notes the detailed information contained in the Government's report for the period ending May 1998. According to the Government, the active population increased by 0.6 per cent in 1996 and by 1.9 per cent in 1997. Youth employment increased by 2.8 per cent, full-time employment increased by 0.5 per cent, and long-term unemployment decreased by 2.1 per cent in 1997. However, part-time employment increased by 17.3 per cent in 1996 and 16.9 per cent in 1997, and self-employment has been consistently growing, most recently at rates of 4.5 per cent in 1996 and 3.6 per cent in 1997.

2. The Committee notes that the Government's strategy for promoting full employment involves modernizing enterprises and improving the social structure to reduce the impact of modernization on unemployment. To this end, the Government's priorities are to complete the third phase of EMU membership, which it has achieved; to consolidate public finances and fiscal reform; to reform the system of social development and protection; and to close the income gap with the rest of the European Union. One of the key components of this strategy is to boost training; currently, about 50 per cent of government expenditure on employment promotion is in the form of training.

3. For its part, the Central Union states that there has been a proliferation of involuntary self-employment, that only 15.7 per cent of formal sector workers have permanent contracts, and that youth have been particularly affected. Disparities between regions, ages, and sexes continue, and long-term unemployment remains a problem. The Central Union believes that the pending comments of the Committee of Experts on the level of unemployment remain valid, as it considers that the decrease in unemployment is due to fluctuations in the business cycle rather than the Government's policies. The Committee notes this information and requests the Government to continue to keep it informed of how the measures adopted for attaining the employment objectives are determined and reviewed regularly, within the framework of a coordinated economic and social policy and in consultation with the social partners, in accordance with Articles 2 and 3 of the Convention. The Central Union also emphasizes that there is a great need for evaluations of the Government's policies and programmes, as such evaluations do not exist. The Committee again requests the Government to provide copies of any assessments of existing programmes, particularly concerning youth and long-term unemployment.

Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

1. The Committee took note of the Government's report for the period ending June 1996 which contains detailed information in reply to its previous observation. Basing itself also on data published by OECD, the Committee notes that the slight employment growth since 1996 was insufficient to compensate for its earlier drop while the unemployment rate continued to rise, from 6.9 per cent in 1994 to 7.3 per cent in 1996. In addition, the characteristics of the spread of unemployment continue to cause concern. Unemployment has increased particularly strongly in industry and regional discrepancies have become more marked. There has been a net drop in the activity rates of young people more of whom continue in education. However, those under 25 still suffer an unemployment rate more than twice the overall rate. Equally significantly the incidence of long-term unemployment has worsened with over half of registered unemployed being out of work for more than a year.

2. The Government indicates that the main objectives in its medium-term social and economic development strategy include obtaining a higher level of economic growth so permitting the creation of skilled, well-paid jobs, and strengthening the competitiveness of the economy whilst reducing state intervention. The Committee notes that in the framework of the convergence programme aimed at accession to the economic and monetary union, emphasis has been placed on price and exchange rate stability and on the control of public expenditure. In this respect, the Committee notes that the results obtained in terms of reducing inflation and decreasing the budget deficit have been accompanied by moderate growth but with a stagnation of employment. The Government refers, furthermore, to the conclusion in January 1996 of the Short-term Social Consensus Agreement in which the social partners have agreed on the principles which should regulate salary policy, employment policy and industrial relations. The Committee also notes the objectives of the 1994-99 Regional Development Plan designed to promote the creation of jobs in the sectors most exposed to international competition by improving workers' initial and further training. The Committee would be grateful if the Government would continue to supply detailed information on how the measures to be adopted for attaining the employment objectives are determined and reviewed regularly, within the framework of a coordinated economic and social policy and in consultation with the social partners, in accordance with Articles 2 and 3 of the Convention.

3. With reference to its previous observation, the Committee notes the data regarding the number of beneficiaries of vocational integration and training programmes for employment, as well as local job-creation initiatives. It would be grateful if the Government would supply any existing assessment of the results obtained by these various programmes in terms of effective and lasting integration of those concerned in employment, particularly with regard to young people and the long-term unemployed.

Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

1. The Committee notes the Government's report for the period ending June 1994. In relation with the recession of the economy experienced by the country in 1993, the OECD standardized unemployment rate, which was 4.2 in 1992, rose rapidly during the period to reach 5.5 per cent in 1993 and 6.8 per cent in 1994. Despite the recovery of economic growth to a more sustained rate, the unemployment rate should remain stable in 1995, according to OECD estimates. The characteristics of the distribution of unemployment noted by the Committee in its previous observation have been consolidated, particularly with regard to young persons, who are affected by an unemployment rate that is twice as high as the overall rate, and as regards the proportion of long-term unemployment, which now accounts for over two-thirds of registered unemployment. The Committee requests the Government to continue supplying as detailed information as possible on the level and trends of the active population, employment, underemployment and unemployment.

2. The Government states that its employment policy is designed to achieve growth and the modernization of productive activity, as well as an improvement in the living conditions of the population, while at the same time remedying imbalances on the labour market by emphasizing the development of human resources. However, the Committee notes that, although the Government describes in detail in its report the various labour market measures adopted, it omits to provide the information required by the report form on the manner in which overall and sectoral economic policies contribute to the pursual of employment objectives. The Committee regrets in this respect that the Government has not provided the information requested previously on the objectives of the Regional Development Plan 1994-99, nor on the implementation of the convergence programme 1992-95. The Committee hopes that the next report will contain full information on the measures adopted in such fields as investment policy; fiscal and monetary policies; and prices, incomes and wages policies, with a view to promoting full, productive and freely chosen employment "as a major goal" and "within the framework of a coordinated economic and social policy", in accordance with the provisions of Articles 1 and 2 of the Convention. The Committee also recalls that in its previous observation it requested the Government to provide information on the implementation of the reform of the labour market and its impact on employment.

3. The Committee notes the adoption during the reference period of new measures to strengthen existing machinery for integration and vocational training for employment, including for persons with disabilities. It notes in particular that Decree No. 1324/93 establishes vocational training measures for workers threatened by unemployment, the possibility of including workers approaching retirement age in courses for the vocational integration of the unemployed, financial incentives for self-employment and the recruitment of the long-term unemployed aged over 45 years, as well as individualized attention for unemployed persons under 45 years of age with a view to preventing long-term unemployment. The Committee also notes the data contained in a recent economic survey by the OECD (June 1995), which emphasizes the beneficial effect on the unemployed of participation in vocational training programmes for employment. It requests the Government to supply any new evaluation that is available of the effectiveness of the various labour market policy programmes that have been implemented.

4. The Committee notes the establishment of an Employment and Vocational Training Observatory, which is tripartite in its composition, as is the administrative board of the Employment and Vocational Training Institute (IEFP). The Committee recalls in this respect that the consultations required under Article 3 of the Convention should cover all the aspects of economic policy which affect employment and should include, in addition to representatives of employers and workers, representatives of other sectors of the economically active population, such as those working in the rural sector. With reference to its previous observation, the Committee requests the Government to indicate whether the Economic and Social Council has examined matters related to the employment policy, in the meaning of the Convention.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's report for the period ending June 1992 which shows that there was an increase of 2.7 per cent in registered unemployment between June 1990 and June 1992, as a result of a 16.2 increase in male unemployment and a drop of 3.7 per cent in female unemployment. The OECD data indicate that employment growth in 1990 and 1991 had the initial effect of reducing the unemployment rate from 4.6 per cent in 1990 to 4.1 per cent in 1991, but that the drop in employment in 1992 sent the unemployment rate back up to approximately 5 per cent in 1993 despite a drop in activity levels. While the gap between male and female unemployment narrowed, the youth unemployment rate remained more than twice the overall rate and over 30 per cent of the unemployed have been without work for more than a year. The Committee notes the changes made in the definitions established for the purposes of the 1992 active population survey and would be grateful if the Government would provide as detailed as possible information on the level and trends of employment, unemployment and underemployment among the various categories of the population for the period 1992-94 which, according to OECD forecasts could see a rapid deterioration in the unemployment situation.

2. The Government's report indicates that the programme for the structural correction of the external deficit and unemployment, to which the Committee referred in its previous observation, was followed by a number of legislative measures, particularly aimed at the extension of training. Indeed, the programme for the training and integration of adults (FIA) begun in 1991 is an essential element of the Government's labour market policy. The purpose of the programme is to promote the integration of the long-term unemployed through training and recruitment, giving incentives to enterprises and focusing particularly on women, older workers and persons with disabilities. The Committee notes that the number of beneficiaries of the various training and retraining measures has grown significantly, and asks the Government to provide in its next report any available evaluations of the results obtained in terms of lasting integration in employment. The Committee also notes with interest the information on the implementation of the System of Incentives for Industrial Diversification in the Vale do Ave (SINDAVE). It would be grateful if the Government would continue to provide information on the way in which industrial policy and regional development measures contribute to promoting employment, indicating in particular the employment objectives of the 1994-99 Regional Development Plan recently adopted. More generally, it hopes that future reports will not be confined to labour market and training policies and that they will also refer to overall economic policies and deal with the links between employment objectives and other economic and social objectives. The Committee would appreciate receiving information on the "convergence programme" for 1992-95 which defines a medium-term economic strategy with a view to accession to the European Economic and Monetary Union and provides for labour market reforms (according to the 1993 OECD economic survey).

3. The Committe notes with interest that an Agreement on vocational training policy has been concluded by the Government and all the employers' and workers' organizations, which bears witness to the social partners' contribution to defining the broad lines of employment policy. It also notes that an Economic and Social Council was created in 1991, which includes a standing committee on social cooperation. The Committee asks the Government to continue to provide information on the way in which consultation with representatives of persons affected is ensured, in both framing and implementing employment policies.

4. Lastly, with reference to its previous observation, the Committee would be grateful if the Government would provide information on the scope and implementation of the reform of the labour market and on the various measures to increase its flexibility, indicating their effects, either noted or expected, on the employment objectives of the Convention.

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

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.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

The Committee refers to its observation, and asks the Government to provide information on the following questions in its next report:

1. In its report, the Government indicates that only the Confederation of Portuguese Industries (CIP) commented on the application of the Convention. The Committee notes that the Government plans to reply to the observations of the CIP. It asks the Government to communicate the observations of the CIP and to enclose any remarks it may consider useful (Part VII of the report form).

2. Please specify the scope and effects of the measures envisaged to promote the geographical mobility of workers in the light of other measures which could be taken to promote employment in the economically depressed regions of the country, such as encouraging the mobility of investment.

3.1 Article 2 of the Convention. With regard to the employment and unemployment statistics, the Committee referred in its previous comments to the recommendations of the report submitted to the Government by the multidisciplinary mission of the ILO Programme for the Improvement of Working Conditions and Environment (PIACT), of 20 November 1984. It would be grateful if the Government would indicate the measures taken or under consideration to establish a single set of statistics based on a single definition of unemployment and founded on an in-depth survey of the labour market conducted jointly by the National Institute of Statistics (INS), the Statistics Department of the Ministry of Labour (SSMT) and the Employment and Vocational Training Institute (IEFP).

3.2 Please also describe the measures taken to co-ordinate the action undertaken by the IEFP and the Inter-Ministerial Committee for Employment (CIME) to promote employment.

4. Lastly, the Committee notes with from Portugal's report to the Fourth Conference of European Ministers of Labour (Copenhagen, October 1989), that a reform of the labour legislation was approved in February-March 1989, which aims to bestow greater flexibility on the labour market and simplify procedures. It hopes that the Government's next report will contain appropriate information on the scope of the above reform in the light of the implementation of the employment policy.

Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee takes note of the Government's report for the period ending June 1988. In its previous comments, the Committee noted with interest the adoption of a development programme, the "Programme for Structural Correction of the External Deficit and of Unemployment" (PCDED), which sets out, as a priority objective, in addition to reducing the external deficit, an active employment policy in the terms of the Convention. During its first phase (1987-90), the PCDED provides for an annual growth in employment of 1 per cent in order to compensate for the effects of economic restructuring and reduce the unemployment rate from 8.6 per cent in 1986 to around 7 per cent in 1990. The Committee is pleased to note that, according to the detailed information in the Government's report and more recent information published by the OECD (Economic Surveys, Portugal, July 1989), the recovery in economic activity has been accompanied by strong employment growth (2.5 per cent in 1987 and 1988) and a considerable decline (2.8 points) in the unemployment rate over two years (the unemployment rate dropped from 8.6 per cent in 1986 to 7.1 per cent in 1987, and to 5.8 per cent in 1988). The Committee notes with interest the considerable improvement in the overall labour market situation, which has taken place in the context of a structural adjustment policy and an active labour market policy which are geared towards the objectives and methods of application of the Convention as defined particularly in Articles 1 and 2.

The Committee hopes that the Government will pursue its efforts, in co-operation with the social partners, to promote, within the framework of a co-ordinated economic and social policy, full, productive and freely chosen employment in the meaning of the Convention, and to find solutions to the problems which, the Government stresses in its report, are among its main concerns: unemployment of young people, long-term unemployment, the return flow of migrant workers, low productivity in small- and medium-sized enterprises and the problems of retraining their staff, the effects of the steep climb in inflation on wages, investment and growth.

2. In this connection, the Committee notes with interest that the Government envisages promoting an employment policy having a special impact on those groups of persons that experience the most serious difficulties in the labour market. The report provides detailed information on the action of the Institute for Employment and Vocational Training (IEFP) and the Inter-Ministerial Committee for Employment (CIME) within specific job-creation programmes and vocational training activities. The information shows the varying impact of the actions undertaken: certain programmes, which aimed to promote permanent employment (local employment initiatives, support for self-employment, support for former trainees from training centres), attracted approximately 3,700 persons, whereas other programmes, designed to employ young people for a given period, involved 28,800 persons. The Committee would be grateful if, in its next report, the Government would include more detailed information on the results of the various actions undertaken by the competent authorities to meet the needs of all categories of persons who frequently encounter difficulties in finding lasting employment. In this connection, it may be useful to refer to the suggestions included in Part III of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169).

3. Article 3. In its previous observation, the Committee noted with interest the emphasis placed upon consultation and co-operation with the social partners, as an essential part of a strategy whose aims (modernisation of the economy and reduction of unemployment) may give rise to disputes. The Government provides little new information on this matter in its report. The Committee would be grateful if it would provide particulars of consultations on employment policies held with representatives of the persons affected, with particular reference to the terms and scope of agreements concluded by the social partners in the Standing Council for Social Consultation, and to the employment measures taken within the framework of the Tripartite Advisory Council of the Institute of Vocational Training and Employment (IFPE).

4. The Committee is also addressing a direct request to the Government concerning a number of other points.