Economics

Portugal's Civil Servants Keep Their Jobs as Economy Struggles

Public workers have avoided deep cuts, thanks to political clout
Protesters march and shout slogans during a general strike in Lisbon on June 27Photograph by Armando Franca/AP Photo

On June 27, Portugal’s labor unions flexed their muscles. To protect benefits, including the 35-hour workweek in the public sector, the unions shut down Lisbon’s commuter train and metro system. Many Portuguese were not sympathetic. “It’s unfair for the public sector to have certain benefits that don’t exist in the private sector,” says Francisco Rodrigues, who runs a clothing store opposite the Parliament building. Portugal’s government employs 600,000.

Prime Minister Pedro Passos Coelho, whose government is at risk of falling, is trying to curb popular resentment over what opponents say is a widening gulf between private employees and public workers who have mostly stayed immune to mass job cuts.