Commitment for growth, competitiveness and employment Social concertation agreement subscribed by the majority of social partners and government in Portugal Ad hoc group Europe 2020 Steering Committee European Economic and Social Committee José Silva Peneda President of the Economic and Social Council (CES) of Portugal Brussels, March 2012

CES is a constitutional body for consultation and social concertation since 1991 Its main goals are to promote: the participation of economic and social agents in decision- making of socioeconomic policies the dialogue between the Government, Social Partners and remaining representatives of the Civil Society It is composed by 66 members The President is appointed by the Parliament with a two thirds majority 2

The Social Concertation Standing Committee (CPCS) Aims to foster social dialogue and tri-party negotiation between the Government, Trade Unions and Employer Associations to enter into agreements Gives an opinion on the evolution of the countrys social and economic situation and policies and proposes solutions for its proper functioning It is chaired by the Prime Minister It is composed by 4 Confederations of Employer Associations, 2 Confederations of Trade Unions, the Government and the President of the ESC 3

Evolution of the Portuguese society Further fragmentation, greater diversity, more mobility and complexity Increased intensity of interdependencies Anticipating movements and interests The good conception of public policies may not be enough 4

The idea that governments were managing territories delimited by physical boundaries is obsolete Governments are just another decision center, among others: democratic legitimacy depends on the relationship between Governments and Social Partners The attitude should be cautious The role of the President of the Republic 5

The social concertation agreement in Portugal: Commitment for growth, competitiveness and employment Signed in January 2012 by all Social Partners, except CGTP, and Government In the context of a challenging fiscal consolidation Under a loan from the IMF, the European Commission and the European Central Bank In an environment of uncertainty about the economic recovery of the euro zone and other regions 6

The social concertation agreement in Portugal: Commitment for growth, competitiveness and employment It is a strong signal: On how to carry out a set of difficult but necessary reforms That the country will be able to solve its problems in a climate of social peace That the country will return to times of hope 7

The social concertation agreement in Portugal: Commitment for growth, competitiveness and employment It comprises 54 pages divided into three main chapters and 230 policy measures It aims to alleviate the current economic cycle with measures to: Strengthen the operational and export capacity of firms Promoting consumption Increasing growth potential in the medium and long term Foster investment and job creation 8

The social concertation agreement in Portugal: Commitment for growth, competitiveness and employment Chapter I: Economic Policies Supporting the internationalization and attracting investment Reformulating the national programmes funded by EU structural funds Promoting entrepreneurship and innovation Supporting the revitalization of the entrepreneurial structure and business financing Fostering domestic production capacity and developing the internal market 9

The social concertation agreement in Portugal: Commitment for growth, competitiveness and employment Chapter I: Economic Policies (cont) Fostering cooperation and technical empowerment of enterprises Promoting competition through better legislation, regulation and the reduction of costs of context Reforming the public administration and the justice system Fighting fraud, tax evasion and the informal economy Promoting urban rehabilitation Promoting agriculture, industry, trade and services, tourism, energy, maritime integrated policy, infrastructures and transport 10

The social concertation agreement in Portugal: Commitment for growth, competitiveness and employment Chapter II: Active employment policies Fostering the performance of public employment services Incentives to hire unemployed people The possibility to accumulate unemployment benefits with salary Training for the unemployed people Promotion of continuing education and vocational training programs Deepening the learning system and connecting schools to business companies Improving the Professional Certification System 11

The social concertation agreement in Portugal: Commitment for growth, competitiveness and employment Chapter III: Labour relations Changes on the organization of working time, holidays and vacations Amendments to the legal system regarding the reduction or suspension of work in situations of business crisis Revision of the legal system regarding dismissal and redundancy compensations Broader application of the contracts of very short duration Promotion of mediation and labour arbitration 12

The social concertation agreement in Portugal: Commitment for growth, competitiveness and employment Chapter III: Labour relations (cont) The creation of a Centre for Employment Relations Changes in the communications to the Authority for Working Conditions Reduction of the minimum time needed to accede unemployment benefits Reduction of the time period during which an unemployed person receives unemployment benefits Promotion of collective bargaining 13

The social concertation agreement in Portugal: Commitment for growth, competitiveness and employment Monitoring and timing for implementation This is the proof that it is possible even in times of emergency and difficulties: To develop a culture of commitment To manage interests on the basis of understanding in which all have to compromise but everyone wins 14

Solving problems is not compatible With simplistic methods With the result of the action of one single agent, however great may be the power that presents itself All political leaders, social partners and other institutions must be prepared to live with low levels of trust 15

The development of a culture involves a compromise based in dialogue and in the truth The path will be easier if trust levels are higher Mutual trust is higher the more intensified structured dialogue is 16

The perfect crisis The greatest difficulties are those resulting from the absence of economic growth The resumption of economic growth in Portugal is not only dependent on us 17

For the sake of Portugal and of the European Union It is urgent to make the necessary changes in the Euro Zone Only that way we can expect hope beyond the adjustment program currently in place 18

Commitment for growth, competitiveness and employment Social concertation agreement subscribed by the majority of social partners and government in Portugal Ad hoc group Europe 2020 Steering Committee European Economic and Social Committee José Silva Peneda President of the Economic and Social Council (CES) of Portugal Brussels, March 2012