Marcelo believes that the agreement in the Social Dialogue creates a “cushion” for the coming years

The President of the Republic considered this Sunday that the agreement reached in the Social Dialogue is “very important” in a time of global instability and economic uncertainty, saying that it creates a “cushion” for the coming years.

“I think this is very important because everything is very unstable in the world, unstable in Europe, and having some kind of platform of understanding between the employers’ confederations, the UGT and the government is very important in the coming years,” said Marcelo Rebelo de Sousa.

The President of the Republic addressed reporters at the entrance to the Santa Cruz Church in Nicosia shortly after attending Mass on the last item on the agenda of his official visit to Cyprus, which began on Saturday.

The head of state recalled that Portugal still has “years of legislature, many budgets, the end of the war, economic recovery” and “management of European funds”.

“All this in public agreement is completely different than all this in social tension between partners,” he stressed.

Asked whether the measures envisaged in the four-year agreement would be sufficient to avoid social protest, the President reiterated that it was “very important” to reach an agreement at the moment, given the existence of “immediate issues” to be faced, such as increase in energy goods or cost of living.

“Having an agreement on positions between employers and part of the trade unions is a good help at a time when we hope that things will go better next year and in subsequent years. But we are not sure, and therefore it is preferable to act with some cushion, moving forward without any cushion: this agreement is a cushion, ”he argued.

When asked if Marcelo is afraid that since the agreement will be valid until 2026 and if there is a period of uncertainty, people may “lose” over time, “the agreement is mobile”.

“This is an agreement concluded now, for the future, that is, for the next few years. In the meantime, the satisfaction of the urgent needs that both have: wages on the one hand, production costs on the other. On the other hand, if necessary, update it and correct it, updating and correcting is inevitable,” he said.

The government and social partners, with the exception of the CGTP, reached a medium-term agreement on Saturday to raise incomes, wages and competitiveness.

The agreement will be signed this afternoon at the Foz Palace in Lisbon in a ceremony with Prime Minister António Costa on the eve of the presentation of the draft state budget for 2023 (OE2023) in Parliament.

Among the measures envisaged by the agreement are wage increases of 5.1% in 2023, 4.8% in 2024, 4.7% in 2025 and 4.6% in 2026.

“The annual assessment aims to ensure that average income per worker grows by at least 20% in 2026 compared to 2022,” the government stresses.

The document also defines the evolution of the national minimum wage from the current 705 euros to 760 euros in 2023, to 810 euros in 2024, to 855 euros in 2025 and to 900 euros in 2026.

The agreement between the partners also provides for an assessment in the Social Dialogue of the impact of the increase in the cost of housing on the family budget “in the sense of taking measures to mitigate these same impacts by the end of 2022.” “.

Apart from the government, CIP – Portuguese Business Confederation, Confederation of Commerce and Services of Portugal (CCP), Confederation of Tourism (CTP), Confederation of Farmers (CAP), UGT and CGTP are part of the Social Dialogue.