Portugal court blocks bill on government firings

NEW YORK (MarketWatch)
Portugal's Constitutional Court on Thursday threw out legislation that would have made it easier to fire public-sector workersundercutting an austerity plan put together by the government as a condition of its bailout by the European Union and International Monetary Fund, news reports said
The plan would have allowed the government to put excess staff in retraining programs at reduced pay, the Associated Press reported
After 18 months, the government would be able to place workers in different jobs or lay them off Current law prohibits the government from laying off public-sector workers except under extreme circumstances, such as gross misconduct, the report noted
The move isn't expected to have much direct impact on the 2014 budget deficit, but could have a longer-term structural effect on spending cuts, Reuters reported