LORRY drivers in Portugal called off a national strike on Sunday as government-brokered talks with bosses resume in a long-running dispute over pay.

The National Hazardous Materials Drivers’ Union and the Independent Freight Drivers’ Union agreed to a pause in the indefinite action after the government declared an “energy crisis.”

Strike action started on August 12 in support of drivers’ demand for a rise in monthly pay from €630 (£577) to €900 (£825) by 2022. 

But the government ordered drivers back to work in some areas when fuel supplies ran low, using a legislative loophole.

Portugal’s economy has been hit hard due to its membership of the European Union. 

It was forced to impose harsh austerity measures in return for a $91 billion (£75bn) loan from the International Monetary Fund, the European Commission and the European Central Bank in 2011.

But the situation worsened, with negative GDP growth in 2014 and unemployment rocketing to 15 per cent.

Prime Minister Antonio Costa sought to soften the impact of the austerity measures in 2015 by increasing public-sector salaries and reintroducing a minimum wage.

Many of the policies remain, however, and Portugal has one of the lowest minimum wages in the EU at €518 (£474).