Labour market regulation and collective bargaining in Portugal during the crisis: Continuity and change

Abstract

This article examines the changes to employment regulation in Portugal during the sovereign debt crisis and assesses their impact on collective bargaining in manufacturing. The changes were wide-ranging and had a negative immediate impact on the process and outcome of bargaining. While this is consistent with the experience of other EU member states in similar circumstances, the changes in Portugal continued the pre-crisis path of reform. Despite significant corrosion and weakening of collective bargaining, there were also signs of resilience. Nevertheless, prospects for a renewed regulatory role for collective bargaining still appear uncertain. We offer some explanations for the distinctive experience in Portugal.