Introduction
As Mexico begins to discuss the possibility of reducing the workweek to 40 hours, Chile has been on this path for two years. Giorgio Boccardo Bosoni, Chile’s Minister of Labor and Social Security, explains how the political and social agreement that made this reform possible was achieved.
Background on Chile’s 40-Hour Workweek Reform
The “Ley 40 horas” in Chile took about six years to materialize. According to Boccardo Bosoni, the key to its realization in 2023 was the dialogue driven by the government with all sectors, including conversations with over 200 social actors to understand the unique dynamics of each industry.
Two Stages of Workweek Reduction
Chile’s workweek reduction has occurred in two stages. The first was in 2005, reducing from 48 to 45 hours weekly. The second began in 2017, with an initiative by diputadas Karol Cariola and Camila Vallejo (now the Secretary General of Governance), which was later taken up by President Gabriel Boric and concluded in 2023 with a gradual reduction from 45 to 40 hours, set to finish in 2028.
Principles Guiding the Reform
Boccardo Bosoni outlines that the current government’s project was based on three principles: effective rest, meaning actual increased free time for workers; economic responsibility, which translated into a gradual implementation of change and incentives for businesses; and social dialogue, which involved analyzing nearly 19 work schedules.
“The Disastrous Discourse Did Not Materialize”
Boccardo Bosoni recounts how the initiative by Cariola and Vallejo initially faced criticism from various sectors warning of negative economic consequences, especially among small and medium-sized enterprises (SMEs). Unemployment, informality, and harm to the labor market were common themes in their discourse, similar to what has been seen in Mexico with recent labor reforms.
However, two years after the implementation of Ley 40 horas, none of these concerns have materialized. In fact, labor productivity levels have remained stable or even increased in certain cases, according to Boccardo.
“Those catastrophic discourses that were once proposed have not been observed,” he adds. “I believe this also influenced the way the reform was carried out, not just the reduction of working hours itself.”
Alternative Rest Mechanisms
Due to the unique characteristics of each economic activity, the Chilean model considered different formats for certain industries since reducing the daily work schedule by one hour wasn’t always practical. Two examples, similar to Mexico’s case, are related to mining or domestic work.
In these sectors, among others, alternative “rest mechanisms” were opted for. This meant establishing additional days of rest per year, calculated to meet the weekly average of 40 hours. According to Boccardo, these adjustments allowed productivity to be maintained without losing the central goal of the reform: providing workers with more actual free time.
Work-Life Balance Measures
Alongside the weekly work schedule reduction, the reform included measures focused on work-life balance. These included a 4×3 work model (10-hour days for four days and three days off); staggered entry and exit times for parents of children under 12; and an overtime hours bank to be exchanged for additional days off annually.
“All these indications incorporated into this project aimed to give workers more freedom, more autonomy to better adapt their family and personal needs to work,” Boccardo highlights.
Lessons for Mexico
Boccardo Bosoni emphasizes that a reform of this nature requires more than goodwill. The Chilean experience demonstrates that the government’s role is crucial in guiding the process, bringing together different sectors, and sustaining the agreements reached.
The Ley 40 horas has not only solidified as a public policy but is recognized by the citizenry as one of the most significant reforms in recent years. “We believe this government, along with the minimum wage and pension reforms, will likely be remembered as the government that reduced the workweek from 45 to 40 hours,” he notes.
Among the recommendations for the Mexican context, Boccardo Bosoni highlights three key elements: establishing a tripartite social dialogue acknowledging each sector’s particularities; defining a gradual transition allowing businesses to adapt without losing competitiveness; and building public legitimacy around the purpose of this reform.
“And, of course, a lot of patience,” he concludes.
Key Questions and Answers
- What is the “Ley 40 horas” in Chile? It’s a reform that gradually reduced the standard workweek from 45 to 40 hours, implemented between 2017 and 2023.
- What were the principles guiding this reform? The three guiding principles were effective rest for workers, economic responsibility through gradual implementation and business incentives, and social dialogue involving various sectors.
- What were the initial concerns about reducing work hours? Concerns included negative economic impacts, particularly on small and medium-sized enterprises (SMEs), such as increased unemployment, informality, and harm to the labor market.
- How have these concerns played out in Chile? Two years after implementation, none of the predicted negative impacts have materialized. Labor productivity levels have remained stable or even increased.
- What alternative mechanisms were used in specific industries? In cases where reducing daily work hours wasn’t practical, alternative “rest mechanisms” were established. This included additional days off per year to meet the weekly 40-hour average.
- What work-life balance measures were included in the reform? Measures included a 4×3 work model, staggered entry and exit times for parents, and an overtime hours bank exchangeable for additional days off.
- What lessons can Mexico learn from Chile’s experience? Key lessons are the crucial role of government in guiding the process, acknowledging sector-specific particularities, a gradual transition for businesses, and building public legitimacy around the reform’s purpose.
