Montenegro defends Labour Code revision as political divisions deepen

Prime Minister Luís Montenegro faced a heated parliamentary session on Wednesday as he defended the government’s proposed revision of the Labour Code before deputies in Lisbon. The debate, held at 14:00 in the Assembly of the Republic, came just one day ahead of the scheduled parliamentary discussion on the draft law, which has sparked sharp political divisions over working conditions and labour rights.

Montenegro’s appearance followed a Tuesday meeting with Chega leader André Ventura, which the prime minister described as failing to reach a “common understanding” on key provisions of the reform. The government’s proposal, which includes changes to overtime regulations, flexible work arrangements, and collective bargaining rules, has drawn criticism from opposition parties, particularly the Socialist Party (PS). PS lawmaker Ana Catarina Mendes likened the possibility of a government-Chega agreement to “The Devil Wears Prada,” suggesting that any compromise would prioritise corporate interests over workers’ rights.

The Labour Code revision has become a focal point of political tension in Portugal, with unions warning of a rollback of hard-won protections and business groups urging modernisation to boost competitiveness. The government argues the changes are necessary to align Portugal’s labour market with European standards while addressing persistent youth unemployment and economic stagnation. However, critics point to provisions that could weaken job security and reduce bargaining power for unions.

The parliamentary debate on Thursday will centre on the government’s proposal, which was formally introduced earlier this month. While Montenegro’s appearance on Wednesday was part of the government’s accountability obligations, Thursday’s session is expected to be more confrontational, with opposition parties preparing amendments to block or significantly alter the draft law. The PS has already signalled its intention to propose alternative measures, including stricter limits on precarious work and enhanced protections for part-time employees.

The political stakes are high, with the government holding a fragile majority and Chega’s influence growing in parliament. Analysts suggest that the outcome of the debate could reshape the legislative agenda ahead of next year’s local elections. Meanwhile, the broader public remains divided, with recent polls indicating mixed support for the reforms—42% in favour, 38% opposed, and 20% undecided, according to a survey published by *Público* on 16 June.

As the debate unfolds, all eyes will be on whether Montenegro can secure enough support to pass the revision or if the government will be forced to water down its proposals in the face of opposition pressure. The stakes extend beyond labour policy, testing the stability of Portugal’s centre-right coalition and its ability to govern amid deepening political polarisation.