Portugal's prime minister on Wednesday set out to win the blessing of trade unions and business leaders for his government's planned labor market reforms, AP reported. Portugal promised to reduce workers' entitlements, among other measures, in return for a ?78 billion ($112 billion) bailout earlier this year that prevented it running out of money. The labor law changes aim to make the economy more competitive. At same time, Portugal is enacting austerity measures, including pay and welfare cuts and tax hikes, to reduce the country's unsustainable debt load. The policies have triggered outrage, though not on the scale witnessed in Greece, where workers have reacted violently to the conditions attached to that country's massive bailout. Prime Minister Pedro Passos Coelho, accompanied by four government ministers, presided at joint talks Wednesday with unions and industry groups. "The government is sticking with its key principle - that reforms won't last long unless there is broad agreement," Passos Coelho told reporters. He said workers and employers would also be consulted about future reform proposals. The reforms will need the approval of Parliament, where the center-right coalition government has enough votes to ensure its policies are passed. No decision on the reform plans were expected at the talks, which were scheduled to continue for days or weeks. Portugal's largest union, the General Confederation of Portuguese Workers, with more than 600,000 members, has previously said it opposes the reforms and intends to stage strikes and demonstrations. Portugal is in the grip of an economic recession which is forecast to continue through 2013. The jobless rate has climbed to a record 12.4 percent and is predicted to rise above 13 percent by the end of this year. After a decade of meager growth, finding new sources of wealth is crucial for Portugal's recovery. The financial rescue package Portugal agreed with its European partners and the International Monetary Fund locks the country into a tight - and monitored - timetable of measures which limit the government's room for maneuver. Any sign Portugal is backsliding would likely worsen its standing with investors who are fretting about the financial sustainability of the wider eurozone. Earlier this month, ratings agency Moody's downgraded Portuguese bonds to junk status. -- SPA
