Ensuring Social Protection – Defend and Strengthen Social Security, today and in the future

Ensuring Social Protection – Defend and Strengthen Social Security, today and in the future

1. The epidemic outbreak of Covid-19 and the measures necessary to prevent and combat it, have brought to the fore the importance of defending public services, in particular a public, universal and just Social Security, an important pillar of our democracy.

In the unusual situation in which we live, PCP highlights the priority that must be given to the consolidation of the Public System of Social Security, ensuring adequate social protection for all Portuguese, by a relentless defence of its financial sustainability, now and into the future, and the necessary valuing of the working conditions and rights of its workers.

2. We must continue to recover wages and rights, in particular those measures in the 2020 state budget – in particular measures, although limited, to strengthen Social Security rights as PCP has defended – while it is also necessary to answer the exceptional context we face.

We value the measures that have been taken, such as the extension and improvement of sickness benefits due to from prophylactic isolation (100% payment) and illness due to COVID-19; and the renewal of unemployment benefits and other benefits guaranteeing subsistence minimums. With regards to "support" to families unable to work due to the closure of schools and other child support establishments, we consider that it is clearly insufficient. PCP has defended and defends 100% support for parents while schools are closed.

PCP presented a set of socially just and necessary proposals, aimed at strengthening the role of Public Social Security, to mitigate the difficulties affecting thousands of workers and their families, as well as all those who are in a situation of economic and social vulnerability or poverty. Among them, we highlight:

- Proposals for the automatic extension and renewal of unemployment benefits and all other social benefits:

- Social protection of self-employed workers and workers on professional traineeships, in particular sickness benefits, child support (up to 16 years of age) for children and grandchildren, paid at 100% of wage and extraordinary support in case of reduction of activity, including situations of 40% fall in services provided.

- Proposals for social protection for trainees at IEFP [Institute for Employment and Professional Training] in the event of termination or suspension of their professional traineeship.

- Maintenance of support for unemployed workers in IEFP training.

- Access to unemployment benefits for temporary workers, regardless of their guarantee period.

- Guarantee of social protection for workers with precarious employment ties in situations of unemployment, in particular workers in the taxi sector and domestic workers.

- Proposals with exceptional and temporary measures of social protection for managing-partners of micro- and small companies.

- Measures of support for social protection of workers in fisheries, either because of COVID-19 illness or situations of mandatory social isolation, including foreign nationals working in Portugal who may have additional needs, as well as protection for fisheries professionals who, due to restrictions on their activity in light of the COVID-19 outbreak have had their incomes reduced or even eliminated.

3. PCP considers that measures to strengthen the National Health Service in the fight and prevention of the COVID - 19 epidemic outbreak must be accompanied by economic and social measures that prevent dismissals, guarantee the payment of wages and defend national production. Everything must be done to prevent a serious economic recession, to prevent a fall in labour incomes and a sharp rise in unemployment, as the Bank of Portugal has already predicted.
The extent and dimension of the economic and social consequences of the situation we are experiencing will depend on the nature of our responses and how quickly they are implemented.

It is therefore unacceptable that the fight and prevention of the epidemic be used to increase exploitation and arbitrariness of employers, to cut wages, to set back rights, which will have as a consequence worsening inequalities, social injustices and poverty, particularly for those whose sole source of livelihood comes from their wage or pension. This in a context where Portugal has 2.2 million Portuguese living in poverty or social exclusion and that, in 2018, 48% of the unemployed were in poverty.

Everything must be done to support micro, small and medium-sized companies, which are a significant part of the productive fabric of our country and which face enormous difficulties, but also everything must be done to enhance their scientific, technical and productive capacity so the country can produce to meet the needs this moment poses.

The uncertainty we are living does not waive but rather requires that Public Social Security be a factor of solidarity, social justice and stability, fulfilling its objectives of social protection of all Portuguese.

4. We would like to salute all the social security workers who, despite the obvious lack of human and technical resources, in difficult conditions, continue to operate the services in order to meet the increased demands this epidemic places on this important public service.

5. It is necessary to defend and strengthen Social Security. The overall balance in February was over 940 million euros, a positive evolution of effective revenue, resulting from the increase in contributions from workers and employers, which rose to over 222 million euros, 7.4% more than in February 2019.

We could have gone further in reinforcing Social Security revenues, notably by diversifying its sources of financing, by a general increase in wages and the National Minimum Wage, and by effectively combating the debt to Social Security, proposals PCP has repeatedly defended.

The monumental debt to Social Security was equivalent, in 2018, to 75% of collected contributions and its growth was 92% between 2008 and 2019. The vast majority of debt concerns contributions docked from workers' wages and not handed over by employers to Social Security.

PCP therefore rejects the use of Social Security as an instrument of economic policy, undermining its nature as a fundamental right of workers and citizens.
The new simplified lay-off regime is an example of just that, a regime that, according to the Minister of Economy, could affect one million workers, who will be left with substantial wage cuts. That is, wages reduced to two thirds of the normal illiquid remuneration with a maximum value of 3 minimum wages.

These are choices that exempt big capital from “risk-sharing" – a very popular thesis of his when advocating the privatisation of Social Security – and exempt employers from paying social contributions.

The government has thus opted for a measure that not only reduces workers' wages by 1/3 but penalizes Social Security.

6. Social Security must not be weakened in its revenue by measures exempting or reducing social contributions or postponing their payment by employers. PCP absolutely rejects weakening Social Security. What is needed is more support for workers and families and to defend and consolidate the public system, which is already suffering the impact of collective and individual dismissals and overdue wages.

Social contributions are not a mere revenue of the state. They constitute a patrimony of the workers. Social Security must respond to and guarantee social support to citizens, in particular workers, who contribute with their wages to the country's social revenues on a monthly basis.

7. PCP defends that exceptional measures, whose payment is defined as the responsibility of Social Security, be borne by the state budget, because the central role of the public, universal and just system cannot be jeopardized, either in the present or in the future.

We would also like to point out that measures to prevent and combat the epidemic, which involve a network of support equipment in the area of Social Action, especially for children, youth, the elderly and people with disabilities, while necessary, are raising demands and difficulties on their workers, users and their families, and on the institutions, which demand rapid responses.

PCP salutes workers in the social sector and will not fail to contribute towards ensuring that the circumstantial measures now taken become part of an in-depth response to the structural problems affecting the network of equipment and services in the field of Social Action.

Therefore, today more than ever, we advocate more and better Social Security, both at the level of social benefits, and at the level of strengthening its financing through the state budget, as a way of guaranteeing the constitutional right of all Portuguese to Social Security, won with the revolution of April 25, 1974.

  • Assuntos e Sectores Sociais
  • Central