Background on Concanaco-Servytur and its Relevance
The Confederación de Cámaras Nacionales de Comercio, Servicios y Turismo (Concanaco-Servytur) is a prominent organization representing businesses in Mexico. Comprising six out of every ten affiliated employers, Concanaco-Servytur plays a crucial role in shaping policies affecting commerce, services, and tourism sectors. Its president, Octavio de la Torre de Stéffano, recently voiced opposition to the proposed 40-hour workweek reform during a series of forums organized by the Secretaría del Trabajo y Previsión Social (STPS).
Concanaco’s Concerns Regarding the 40-Hour Workweek
Concanaco argues that implementing a 40-hour workweek would impose significant financial burdens on businesses, particularly those in the service and commerce sectors. These companies often operate extended hours or require weekend work, making it challenging to reduce working hours without consequences.
Cost Implications for Businesses
According to de la Torre, transitioning to a 40-hour workweek without salary reduction or additional support would result in an increased monthly cost of approximately 65,793 pesos per employee. This breakdown includes:
- 29,000 pesos for Social Security contributions
- 5,000 pesos for additional vacation days
- 6,000 pesos for year-end bonuses (aguinaldo)
- 23,000 pesos for tax adjustments related to annual working hours
De la Torre emphasized that these costs are not minor for many businesses, often representing the difference between retaining an employee or keeping their doors open.
Miners’ Union Opposition to the Reform
Carlos Pavón Campos, leader of the Miners’ “Frente” union, echoed Concanaco’s concerns. He highlighted the potential negative impact on workers’ finances due to increased rest periods authorized by recent labor reforms.
Productivity and Salary Impact
Pavón Campos pointed out that reducing the workweek to 40 hours would result in a loss of daily productivity, as employees would effectively lose a day’s wages. He cited the extension of vacation days as an example, illustrating how reduced working hours could directly affect workers’ earnings.
Key Questions and Answers
- What is Concanaco-Servytur? Concanaco-Servytur is a Mexican confederation representing businesses in commerce, services, and tourism sectors.
- Why are Concanaco and miners opposed to the 40-hour workweek reform? They argue that implementing this change would impose significant financial burdens on businesses, particularly those in the service and commerce sectors, which often require extended hours or weekend work. Additionally, they emphasize that reduced working hours would negatively impact employees’ earnings.
- What are the primary cost implications for businesses under the proposed reform? The monthly cost per employee would increase by approximately 65,793 pesos, encompassing Social Security contributions, additional vacation days, year-end bonuses, and tax adjustments related to annual working hours.
