Portugal's councils shed 19,000 staff

farocamaraPortugal’s 308 municipalities ended 2014 with 116,560 employees, the lowest number in the last decade.

Prime Minister Passos Coelho said the reduction is a number in excess of that required by and agreed with the Troika.

According to the memorandum of understanding signed between Portugal's government and the Troika, Portugal’s municipalities were required to reduce 2% of their headcount per year, but staff reductions in the three years of the adjustment programme have totalled 14%, more than double the amount required.

It is a mixed picture with 24 councils actually managing to increase the numbers on their payrolls over the last three years, balanced by three municipalities that reduced staff numbers by more than 25%.

The most significant reduction was in 2012 with a 4.4% reduction, with Lisbon leading the way as is shed 2,274 employees and cunningly moved 1,270 to its parish councils.

Further council staff will have been redeployed to council water companies and other council owned enterprises.

Each council has now an average of 378 employees, the equivalent figure for 2010, before the Troika came to town, was 440 workers.