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EUROPEAN REVIEW

ISSUE 17 - Page 5

Portugal grapples with new problems as EU brings prosperity

Portugal is one of the smaller members of the EU, its recent history was marred by poverty and dictatorship but after accession to the Union conditions have gradually improved. The European Review here outlines its current position and concerns.

THE EXPERIENCE OF PORTUGAL in the twentieth century mirrored that of its larger neighbour Spain. After a long period of dictatorship, ended by a bloodless revolution in 1974, isolation and general poverty, joining the European Union in 1986 brought benefits including growing prosperity. However just as it did not suffer the depths of a Civil War so it missed out on the 'big bang' effect which occurred in Spain from the nineteen-seventies on. The improvement in Portuguese life has been rather more gradual and only now are the problems of prosperity becoming pressing. The traditional industries of cork processing, wine production, textiles and leather working were never enough to absorb job seekers but one indicator of prosperity is that the traditional net outflow of workers to northern Europe is now more than balanced by incomers seeking jobs in Portugal. While the British TUC recently conducted a campaign to alert Portuguese workers in the UK, estimated to number some 20,000, to their rights, the unemployment rate back home stands at 3.9%, one of the lowest in the EU.

It is estimated that the Portuguese economy will need 22,000 immigrant workers this year alone to satisfy mainly the booming construction industry. The reason for this paradox may lie in levels of education. While the TUC reports that 'Portuguese migrant workers are being encouraged to come to the UK to fill vacancies in agriculture, cleaning and the hospitality industry, but language problems and a lack of understanding of UK employment law is giving unscrupulous employers a licence to exploit', many of the immigrants to Portugal, often from eastern Europe are reported to be highly educated.		78% of the indigenous work force have nine years of schooling or less, compared with an EU average of 35.8%. Inward investment has mainly provided low skill jobs on the basis of low cost labour but as the country has been undercut by eastern Europe and the Far East, foreign companies have moved on. The socialist Government of Prime Minister Guterres, trade unions and employers are trying to tackle this with a national training agreement which will: guarantee all employees the right to 20 hours of training a year by 2003 rising to 35 hours by 2006; force companies to have at least 10% of their work force training
	Antonio Guterres, Prime Minister of Portugal

at any one time from 2002 and, for those under 18 without full schooling, occupy 40% of their working hours in training. Meanwhile, in pay negotiations, the two major union confederations, the CGTP and the UGT, suspicious of the projected official inflation figure of 3.5%, are asking for an increase of between 5.5% and 6.5% in 2002. A 35 hour working week and better holidays are still on the agenda but overtime is widespread with a recent survey finding 30% of employees working weekends. Although many women work full time, child care is in its infancy with the work/life balance argument only just beginning. Similarly the need to work long hours to make up poor wages explains the low level of part time work in Portugal. The government is seeking to address this with two laws passed this year to monitor and reduce the gap in wage and unemployment rates between men and women. They will also outlaw discrimination and include some tentative steps towards family friendly employment policies.

Portuguese industries old and new: cork washing machine and construction development

Current issues in the country also include the liberalisation of the drug laws and tightening up on drunken driving. Portugal has the highest rate of road fatalities in the EU but a recent measure to reduce the blood alcohol limit met with a fierce reaction from the wine industry which depends on the traditional drink with meals. Opposition to the decriminalisation of illegal narcotic possession has reduced as it has become apparent that fears of 'drug tourism' were exaggerated. Portugal has made a start on tackling the new challenges which its slow march to affluence has posed.

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