Background on Concanaco and Canacintra
Concanaco-Servitur and Canacintra are prominent Mexican business chambers representing various sectors, including commerce, services, and tourism. Their members include small businesses, family-owned enterprises, and larger corporations. These organizations play a crucial role in advocating for business interests and shaping policies that impact their members.
Opposition to Immediate Jornada Laboral Reduction
According to a survey conducted among their members, 67.2% of the entrepreneurs oppose the federal government’s proposal to reduce the working week from 48 to 40 hours. The presidents of both chambers, Octavio de la Torre (Concanaco-Servitur) and Esperanza Ortega (Canacintra), stated that they would present proposals for a “gradual and sector-specific” reform, rather than immediate implementation.
Concerns Regarding Uniform Implementation
De la Torre highlighted that a uniform reduction in working hours without considering the diversity of sectors (primary, secondary, and tertiary) could jeopardize business stability and the livelihoods of those who depend on them. Ortega emphasized the potential impact in Mexico City, where 476,000 economic units might face closures if the reform were implemented.
Proposed Gradual and Sector-Specific Reform
The business leaders proposed a gradual, sector-specific transition towards the reduced working week by 2030. They suggested tailoring the reform to each sector’s unique characteristics, such as business size and geographical location. They also called for incentives to formalize the informal labor sector, which accounts for 55% of the economy.
Creation of an Observatorio de Transición Laboral
To monitor and adjust the implementation of the reform, they proposed establishing a tripartite “Observatorio de Transición Laboral” (Labor Transition Observatory) to evaluate the reform’s impact based on real-world evidence.
“No, but We’ll Make it Work”
Despite their disagreement with the federal government’s proposed changes, both business leaders expressed their commitment to finding ways to implement the reform successfully.
Survey Results on Feasibility and Concerns
The survey revealed that 64% of business owners consider immediate reduction to 40 hours impossible without affecting operations. Additionally, 71.4% anticipate increased operational costs even with a gradual transition.
The primary concerns include rising labor costs (including taxes), potential customer service degradation, and possible job losses.
The leaders emphasized that not all activities can adopt the same labor model, citing differences between manufacturing plants with shifts and small businesses like restaurants, neighborhood stores, or modest hotels employing 1-10 people.
Key Questions and Answers
- What is the main concern of Concanaco and Canacintra regarding the proposed jornada laboral reduction?
Their primary concern is the uniform implementation of the reduction without considering sector diversity, business size, and geographical location. They fear this could destabilize businesses and affect livelihoods.
- What alternative proposal have Concanaco and Canacintra put forward?
They propose a gradual, sector-specific transition towards the reduced working week by 2030, tailored to each sector’s unique characteristics.
- What incentives do they suggest to support the transition?
They recommend incorporating incentives to formalize the informal labor sector, providing financial, fiscal, and technological support for family-owned businesses.
- What is the Observatorio de Transición Laboral?
It’s a tripartite body proposed to monitor and adjust the implementation of the reform based on real-world evidence.
- What are the main concerns of business owners regarding the proposed reduction?
Business owners worry about increased operational costs, potential job losses, and the possibility of degraded customer service.
