HomeEconomyGovernment renews TAP's status as a company in difficult economic situation

Government renews TAP’s status as a company in difficult economic situation

The government approved a resolution this Thursday in the Council of Ministers renewing the statement of TAP SA, Portugália and Cateringpor, of difficult economic situation, which is essential to implement the restructuring plan.

“The resolution was approved renewing the statement of TAP, SA, Portugália, SA and Cateringpor, SA, in a difficult economic situation,” the executive said in a statement sent after the meeting of the Council of Ministers.

The regulation declaring TAP, Portugália and Cateringpor in a difficult economic situation was published on January 14, 2021, with retroactive effect from December 2020, and had already been extended at the end of last year to take effect this year.🇧🇷

The resolution makes the declaration of these companies in a difficult economic situation official and effective, and gives it legal effects, such as changing working conditions and suspending all or part of clauses of company agreements or applicable collective bargaining instruments.

Thus, by declaring companies in a difficult economic situation, the government allows the reduction of working conditions and the non-applicability or suspension of the clauses of the company agreements or of the applicable collective regulatory instruments, in whole or in part.

The agreement concluded in January 2015 between the government and several trade unions representing TAP employees and TAP – Transportes Aéreos Portugueses, which was included in the specifications for the re-privatization and was known to the extent that it was explicitly or implicitly adopted in the subsequent acts that formalized the reprivatization.

The government decides in the resolution to apply to TAP – Transportes Aéreos Portugueses, Portugália – Companhia Portuguesa de Transportes Aéreos and Cateringpor – Catering de Portugal, “under the conditions understood by the companies as appropriate and necessary” the temporary reduction scheme from the normal duration of employment or suspension of the employment contract due to a fact concerning the employer, laid down in the Labor Code.

The government also commits, with delegation powers, to the Minister of State and Finance, the Minister of Labour, Solidarity and Social Security and the Minister of Infrastructure and Housing, within set limits, the methodological planning, densification, modification or extension, by order on the scope and scope of those measures.

Author: DN/Lusa

Source: DN

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