LISBON (Reuters) - Portugal's public sector workers refused on Wednesday to cancel a strike set for Friday, demanding an immediate 35-hour work week in growing pressure on the minority Socialist government from its far-left allies.
The public sector workers' union FNSTFP is part of CGTP umbrella union, Portugal's largest, that has close links to the Communist Party.
The government, in power for just over two months, relies on the Communists and Left Bloc in parliament to approve bills after the three parties ousted the previous austerity-minded centre-right administration last November.
Some analysts believe the government could be short-lived if the two far-left parties push for more radical policies and more spending, undermining the administration's plan for moderate budget consolidation and an easing of austerity measures.
Political uncertainty and social strife could scare away investors, undermining a nascent recovery after a debt crisis.
"Public sector workers will go on strike on Jan. 29 because nothing has changed for us to suspend it. Our central demand is immediate reinstatement of 35 hours," union leader Ana Avoila told a news briefing. There will still be a meeting with the finance minister on Thursday to try and find a solution.
Two unions from Socialist-linked UGT labour group has earlier revoked its decision to take part in the strike.
Avoila's ultimatum followed disagreements between the moderate Socialists and the far-left parties backing them in parliament over how soon the government, elected on promises to roll back austerity, can cut the 40-hour working week.
The Socialists have agreed to implement the cut in July, while the unions and the far-left are pressing for it to come into effect as soon as possible.
Portugal's previous centre-right government imposed the 40-hour week in the public sector in 2013 as part of its austerity drive under an international bailout that finished in 2014.
Strikes and protests against steep tax hikes and deep wage cuts flared during the centre-right's 2011-2015 term. Portugal's last public sector strike was in March 2015.
The Socialists came to power promising to end austerity but still cut the budget deficit to meet commitments to the European Union. The government has already lifted the minimum wage and started to restore to public sector workers some of the salary cuts suffered during the bailout programme.