Background on the Issue
The Mexican business sector, represented by Francisco Cervantes Díaz, President of the Consejo Coordinador Empresarial (CCE), supports the gradual reduction of the workweek from 48 to 40 hours. However, they emphasize the need for complementary measures to mitigate potential negative impacts on the economy and employment.
CCE’s Stance
Gradual Reduction with Complementary Measures:
Cervantes Díaz asserts that a gradual reduction of the workweek, accompanied by complementary measures, is the most responsible and effective approach. These measures should include sector-specific implementation, flexibility, and a comprehensive plan to create eight million formal jobs needed over the next five years.
Sector-specific Implementation:
He stresses the importance of tailoring the reform to different sectors, functions, company sizes, regions, and federal entities. This approach will help minimize impacts according to each sector’s unique characteristics and challenges.
Flexible Work Arrangements:
Cervantes Díaz advocates for flexible work arrangements, such as daily, weekly, bi-weekly, or monthly reductions, accrued time off, and extraordinary work schedules. These measures aim to maintain or increase productivity while reducing the workweek.
Benefits and Impact:
He suggests that a gradual reduction, starting with one hour less per week, could benefit 77% of workers with manageable impacts. He also proposes incentivizing this process by allowing deduction of social benefits and adjusting the subsidy table.
Exemptions for Autorregulated Workers:
Cervantes Díaz emphasizes the need to maintain exemptions for workers with autorregulated hours, particularly those working outside traditional office settings with variable schedules. These exemptions ensure flexibility and autonomy for workers.
Concerns from Canaco-Cdmx
Potential Increase in Informality:
Vicente Gutierrez Camposeco, President of Canaco-Cdmx, warns that approving the workweek reduction without graduality and flexibility could increase informality in Mexico.
Sector-specific Considerations:
Gutierrez Camposeco argues that not all sectors should be treated equally regarding the proposed reform. Small and medium enterprises (SMEs) face unique challenges, including increased operational costs and potential staffing needs. These factors could negatively impact SME competitiveness and viability.
Potential Rise in Informal Employment:
He predicts that without a comprehensive strategy to support formal employment, the informal workforce could rise from 55% to 65%. Such a shift would create new distortions in businesses.
Key Questions and Answers
- What is the CCE’s stance on reducing the workweek? The CCE supports a gradual reduction of the workweek from 48 to 40 hours, accompanied by complementary measures like sector-specific implementation, flexibility, and a plan to create eight million formal jobs.
- Why does Cervantes Díaz advocate for sector-specific implementation? He believes tailoring the reform to different sectors will help minimize impacts according to each sector’s unique characteristics and challenges.
- What flexible work arrangements does Cervantes Díaz propose? He suggests flexible work arrangements, such as daily, weekly, bi-weekly or monthly reductions, accrued time off, and extraordinary work schedules.
- What concerns does Vicente Gutierrez Camposeco raise about the proposed reform? Gutierrez Camposeco warns that the reform, without graduality and flexibility, could increase informality and negatively impact small and medium enterprises.
- What is the potential consequence of not addressing informality? Without a comprehensive strategy to support formal employment, the informal workforce could rise, creating new distortions in businesses.
