Background on the Situation
Querétaro, Qro. Companies specializing in export manufacturing are evaluating the effects of reducing the workweek to 40 hours, as announced by the Mexican federal government. Enrique Quezada Ojeda, president of the Association of Export Manufacturing Industry of Querétaro (Index), anticipates that some firms might expand their workforce to comply with this new regulation.
Impact on Production Centers
The impact will be most significant for production centers operating three shifts daily, according to Quezada Ojeda. Each company’s strategy will vary based on its production measures.
- Increased Workforce: Companies with 24/7 operations and three shifts may need to hire additional personnel to meet the 40-hour workweek requirement.
- Productivity Projections: Some firms expect productivity improvements, but this may not apply to factories operating at the pace of machinery.
Quezada Ojeda explained that the reduction in working hours necessitates an increase in labor force. He pointed out that while some companies might see productivity gains, others may face challenges due to the constant machine operation pace.
“The 40-hour workweek isn’t the main issue; in Mexico, we already pay for 56 hours of work based on 48 hours, including rest days. Now, we’ll continue paying for 56 hours but with only 40 actual work hours, which means hiring more people to cover those hours. This will slightly affect operations as it requires more personnel to maintain the same output,” he stated.
Gradual Implementation and Talent Shortage
The implementation of the 40-hour workweek should be gradual to accommodate adjustments and meet new personnel needs, Quezada Ojeda emphasized.
He also highlighted the challenge of talent shortage, as companies will need to find qualified workers amidst limited availability. Index’s past studies revealed that the required human capital exceeded the available workforce.
“The process must be gradual because there isn’t enough personnel to hire immediately. A few years ago, our study showed that we needed more people than those unemployed, meaning we required more workers than were available,” he explained.
Assessing Talent Needs
Companies must conduct talent need assessments due to recent vacation time increases, which led some firms to expand their workforce. Quezada Ojeda advised that businesses should reevaluate their staffing requirements considering factors like shift patterns and seat rules.
“Companies will need to conduct another study since shift patterns and seat rules have changed. All these factors will impact product costs, so businesses must carefully evaluate the implications,” he said.
Initial Steps Taken by Companies
Some companies have started adjusting their work schedules to adapt to the new regulation, while human resources departments evaluate the measure and identify its impact.
On May 1st, Labor Day, the federal government announced dialogue tables between workers, companies, and unions to implement the 40-hour workweek consensually.
Key Questions and Answers
- What is the main focus of this article? The article discusses how Querétaro-based export manufacturing companies are evaluating the impact of reducing the workweek to 40 hours and considering necessary adjustments, such as hiring more employees.
- Why is the 40-hour workweek significant for these companies? The new regulation requires companies to adjust their operations, potentially leading to increased workforce due to reduced working hours per employee.
- What challenges do companies face during this transition? Companies may encounter difficulties in finding qualified personnel, managing productivity, and adjusting to new shift patterns while maintaining operational efficiency.
- How is the implementation of the 40-hour workweek planned? The federal government has initiated dialogue tables with workers, companies, and unions to implement the 40-hour workweek consensually and gradually.
