Tens of thousands of people protested in Lisbon on Saturday against the centre-right government’s plan to overhaul labour laws, which unions say will undermine workers’ rights, and to demand higher wages.

Portugal’s biggest union, CGTP, which called the protest, accused the government of favouring big business while low-paid workers struggle with rising living costs.

Prime Minister Luis Montenegro’s government approved a draft bill to amend the labour code in September, saying it aims to boost competitiveness.

Joining Saturday’s protest, Miriam Alves, 31, a worker at a medical device company, said the labour reform is “clearly a step backward in working conditions and could lead to a complete lack of job security”.

“Even if it may not be my case, I’m speaking for the many young people with precarious jobs, low wages, and whose future would be to continue with fewer rights, tired and afraid of their future,” she said.

Archive technician Madalena Pena, 34, said the government was reversing labour rights “in an unfair, subtle, and cunning way, without having said anything before the election” in May.

Under the planned changes, it would become easier for employers to dismiss workers for just cause as they would no longer need to present evidence at a worker’s request or hear their witnesses.

Restrictions on outsourcing would be eased and companies would be allowed to create “individual time banks” enabling employees to work up to two extra hours per day, capped at 150 hours annually.

The bill is likely to pass in parliament with support from far-right Chega.

Portugal is one of Western Europe’s poorest countries, with official data showing more than 50% of workers earned less than 1,000 euros ($1,166) per month last year. The minimum wage is only 870 euros, one of the lowest in the EU.