tag:blogger.com,1999:blog-3120478448417742445.post5595261661244029370..comments2024-03-24T06:35:14.281+00:00Comments on The Portuguese Economy: Is the labour market too rigid?Editorhttp://www.blogger.com/profile/16779405217168307855noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3120478448417742445.post-65836274934736362142011-01-20T12:18:02.719+00:002011-01-20T12:18:02.719+00:00I can actually state that considering that I'm...I can actually state that considering that I'm working in Germany for a year, I'm always sort of surprised to read about the working laws being rigid in Portugal. Here in germany, the companies are much more controlled and enforced certain compensatory rules when dismissing employees.. and I have to be honest I never really felt the power of the work unions in Portugal like I feel here.. open your mouth and there's ready support from them to you as an employee and the right amount of respect to their opinions by the employer. Can't tell if it's just the case for foreign companies working here in Germany, but I honestly believe this is the common case for most Germany companies.Pedro Custódiohttps://www.blogger.com/profile/01922002077553165250noreply@blogger.comtag:blogger.com,1999:blog-3120478448417742445.post-499691102704170392011-01-18T16:28:28.555+00:002011-01-18T16:28:28.555+00:00We cannot ever be competitive through labour flexi...We cannot ever be competitive through labour flexibility, that is absurd.<br /><br />Like stated we were competitive till 2000, and the markets then were less flexible. Wage adjustments cannot compensate for the appreciation of the Euro, wich is the main cause of our sudden lack of competitive conditions.<br /><br />I would eventually agree that labour costs could be a problem if the costs in Portugal were higher then in the EU, but that's not the case. We are cheaper, and still can't attract foreign investment.<br /><br /><br />OCDE would never publish an article stating that the PIGS problems can be traced to the EURO, yet its very clear where lies the root of the problem.<br /><br />On a final note, the lack of flexibility and higher labour costs can work has an incentive to increase productivity, since we have to extract more from the resource then its cost.<br /><br />If use of the resources is flexible, we would be encouraging to continue in the path of labour intensive production, and Portuguese Economy would never transform itself.rastanplanhttps://www.blogger.com/profile/13069268139980949915noreply@blogger.comtag:blogger.com,1999:blog-3120478448417742445.post-89821669218384129982011-01-18T15:48:00.914+00:002011-01-18T15:48:00.914+00:00I would suggest that the labor market does not hin...I would suggest that the labor market does not hinder the performance of top private firms such as Sonae or Jerónimo Martins. I would say that it hinders both the performance of top formerly public firms such as PTP, CTT or EDP, and the performance of start-up companies.<br /><br />The latter is what worries me the most as it prevents entrepreneurs from risking and creating real value for Portugal and not open yet another restaurant / coffeehouse.migohttps://www.blogger.com/profile/08067933321515671018noreply@blogger.com