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Negotiations over the government's proposed social contract were due to restart early in 2004, against a backdrop of continued economic difficulties. Following falling real pay, rising unemployment and tightening public expenditure in 2003, the two main trade union confederations - the General Confederation of Portuguese Workers (Confederação Geral de Trabalhadores Portugueses, CGTP) and the General Workers' Union (União Geral de Trabalhadores, UGT) - are focusing on pay rises in 2004 that will improve workers’ purchasing power, especially at the lowest levels, and calling for similar increases in pensions (PT0310101N). On the legislative front, 2004 is likely to see approval of new legislation on employment contracts and a new performance assessment system in the public administration, while social dialogue is expected to continue on aspects of the new Labour Code.
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