Current Legal Framework and Exceeding Working Hours
The Federal Labor Law already stipulates that workweeks should not exceed 48 hours, yet many still surpass this limit significantly. In June 2024, a reform to the General Law for Prevention, Sanctioning, and Eradication of Crimes related to Human Trafficking and Protection and Assistance for Victims came into effect. This reform considers excessive working hours as labor exploitation when they surpass the legal limit of 48 hours per week. Additionally, overtime work cannot exceed three hours daily and nine hours weekly.
Reducing Workweek from 48 to 40 Hours: A Gradual Process Towards 2030
As the goal is to gradually reduce the workweek from 48 to 40 hours by 2030, set by the federal government, what can companies do if they still have workweeks exceeding 48 hours?
Three Strategic Steps for Workweek Reduction
Blanya Correal Sarmiento, an international consultant and expert in labor and organizational transformation models, suggests that companies should establish a strategic path towards reducing workweeks in Mexico, especially considering the 2030 scenario.
1. Baseline Regularization and Compliance
The first step involves regularizing and ensuring compliance with the base. This means adjusting these maximum hours by diagnosing the actual workweek and examining internal regulations, labor contracts, collective agreements, and operational practices—especially in vacation calculations and managing rest days. “This should be done urgently this year,” Correal Sarmiento emphasizes.
2. Optimizing Workweeks and Productivity
The second step is optimizing workweeks and maximizing productivity. How can productivity be increased without expanding the workforce or altering shifts?
- Mexico currently faces a low availability of skilled personnel to fill vacancies, with many companies struggling to find individuals with the right profiles. As demand increases, so do costs and difficulties in accessing talent.
- Automation is crucial here, as digitalization and artificial intelligence can help achieve the same productivity with fewer people.
- Flexible work schemes, staggered shifts, and job-sharing arrangements should be integrated.
- Leaders, especially middle management, must develop the ability to manage flexible work schedules.
Luis Peña, People Advisory Services (PAS) Sector Leader at EY Mexico, agrees that the workweek reform presents an opportunity to transition from time management to a system of management.
Peña warns that simply hiring more people to maintain productivity is not the answer, as it would negatively impact overall productivity. “If six people are needed to produce 100 units of a product, and the company hires an additional person upon reform implementation, will the company be more or less productive? The answer is no,” he explains.
Overtime pay, he adds, would only exacerbate employee burnout, making it clear that this approach is not viable.
3. Consolidating Workweeks and Sustainable Culture
The third step is consolidating workweeks and establishing a sustainable culture. Correal Sarmiento has experience in productivity-based collective bargaining, aiming to make work hours truly effective and capitalizable.
Peña acknowledges that some companies will face challenges, particularly those with one-to-one employee-machine relationships requiring 24/7 operation. In such cases, hiring additional personnel might be necessary. However, organizations should identify areas for automation and technology investment to offset these needs.
