Portugal faces first joint strike in 12 years over labor reforms

Portugal’s two largest unions launched their first joint strike in 12 years on December 11, challenging a proposed overhaul of the country’s labor market by Prime Minister Luís Montenegro.

The walkout aims to halt a package the government says will modernize labor laws and attract investment, while opponents argue it will erode worker protections, Bloomberg reports.

The strike is expected to disrupt transport, healthcare, and public services nationwide. Reduced airport staffing has caused flight delays and cancellations by flag carrier TAP SA, while rail operator CP has implemented significant service cuts. Hospitals are operating with skeleton crews outside urgent care, many schools have closed or curtailed schedules, and municipalities have warned of delays in waste collection and other essential services. Public transport limitations have prompted authorities to warn motorists of heavier traffic in major cities.

Actions of this scale are rare in Portugal. Before December 11, the country had witnessed only 10 general strikes over the past 50 years, half of them during the 2011 bailout crisis. The last major strike in 2013 helped galvanize opposition to austerity measures.

Montenegro condemned the protests as “incomprehensible” and politically motivated, arguing that there is no reason to object before parliament has approved the legislation. While the government says it is open to adjustments, it insists it will not compromise on the central elements of the reform.

Key proposals would end mandatory reinstatement for workers dismissed illegally and simplify just-cause firings for small firms — measures that have sparked debates across Europe as governments seek to boost competitiveness.

Montenegro contends the labor reform could attract investment and help Portugal close its productivity gap with wealthier peers. While the economy is expected to grow by more than 2% in 2025 and unemployment remains low at around 6%, Portugal produces roughly 30% less per hour than the EU average, according to Eurostat. Productivity has increased just 3% since 2015, compared with gains of 10%–15% across the euro area.

Wages also remain modest. Minimum monthly salaries are set to rise to €920 ($1,070) next year, while the average gross monthly pay of €1,298 lags far behind richer EU nations.

Montenegro’s reforms target rigid hiring and firing rules that have created a dual labor market: entrenched workers on permanent contracts with strong protections and high dismissal costs, and a large cohort of younger workers unable to secure long-term deals. More than 40% of under-35s are currently on temporary contracts.

Public opposition to the reforms is high. A DN/Aximage survey found that 60% of respondents supported December 11 strike, including roughly half of those who voted for Montenegro’s coalition.

With no date yet set for parliamentary debate on the legislation, the standoff between the government and unions may deepen in the coming weeks.

By Vafa Guliyeva