Nova workboard

a blog from young economists at Nova SBE

How to dismiss workers gently

The critical situation lived in Portugal since the beginning of the crises imposes sacrifice to all citizens – the increase in taxes, the cut in wages, the increasing unemployment, the bankrupt of firms are just some examples. People are tired, but more sacrifices are needed to fulfil the conditions imposed by “troika”. Just before the next visit, Government approved the new requalification regime, that it still need to be accepted by the Constitutional Court.

This new regime is composed by two phases. In the first 12 months the worker will receive 60% of its initial wage and after 12 months in the process of requalification 40% of the wage, but there is a upper limit and the worker will never receive less than the minimal wage. This policy appear after the not approval by the Constitutional Court of a collective dismiss in the public sector.

The public sector for a very long time has been the big employer in Portugal and the best one, because after you were in the board it was almost impossible to fire you. After 25th of April many unneeded jobs have been created until the intervention of FMI. This situation couldn’t long forever and now the Government fight to try to find ways of getting rid of unnecessary workers. This policies are in my opinion just a way of avoiding the problem and other sectors suffer already with the avoidable cost of this unproductive workers, for instances the health care system sees a decrease of 200 million Euros in their budget. I defend that the state should work more like a company than what really happen right now. If the employee doesn’t represent value for the company is dismiss.  Our approximation of Social State proved not to be an efficient way to drive Portugal, government after government have been trying to please the mass voters, the median class.

This requalification regime probably will not be approved and is just a postpone of what need to be done in order to help to overcome this crises without more collateral effects.

Maria Dentinho

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Author: studentnovasbe

Master student in Nova Sbe

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