Lessons from Chile and Colombia’s Work Hour Reduction Reforms for Mexico

Introduction

Mexico is set to embark on a critical journey in June, constructing a project for reducing work hours. Amidst government promises, workers’ desires, and private sector warnings, the challenge lies in designing a transition scheme that enables achieving a 40-hour workweek no later than January 2030.

International Context and Recent Latin American Cases

There are numerous international examples, and recently in Latin America, two concrete cases stand out: Chile and Colombia. These are the latest countries in the region to transition towards reducing their work hours.

International Standards and Guidelines

According to the International Labour Organization (ILO), each member should promote and ensure, within compatible national conditions and customs, the application of the principle of progressive reduction in normal work duration. This should be done using appropriate means aligned with existing or potential regulatory methods for work duration.

Relevance of Chile and Colombia’s Experiences

Chile and Colombia have implemented work hour reduction reforms, providing valuable lessons for Mexico. Both countries have demonstrated the importance of addressing various aspects beyond graduality in their transitions.

Chile’s Work Hour Reduction Reform

Chile’s reform began in 2014, aiming to reduce the standard workweek from 45 to 40 hours. The process involved negotiations between employers, employees, and the government, resulting in a flexible transition period. Key aspects included:

• A two-year transition period for companies to adapt
• Exemptions for specific sectors, such as agriculture and tourism
• Incentives for companies that exceeded the minimum reduction requirements

Colombia’s Work Hour Reduction Reform

Colombia’s reform started in 2017, targeting a gradual reduction from 48 to 40 hours per week. The process included:

• A four-year transition period
• Flexibility for companies to choose their own schedules within the new framework
• Collaboration with unions and employer associations to ensure a smooth transition

Applying Lessons to Mexico’s Reform

Mexico can learn from Chile and Colombia’s experiences to design an effective work hour reduction reform. Key considerations include:

1. Establishing a clear transition period with flexibility for companies to adapt
2. Exempting specific sectors if necessary, while ensuring progress towards the 40-hour workweek
3. Collaborating with unions, employer associations, and the government to create a comprehensive reform plan
4. Implementing incentives for companies that exceed minimum reduction requirements

Key Questions and Answers

• What is the main goal of Mexico’s work hour reduction reform? The objective is to transition from the current standard workweek to a 40-hour workweek by January 2030.
• Which countries have recently implemented work hour reduction reforms in Latin America? Chile and Colombia have successfully reduced work hours in recent years.
• What key aspects should Mexico consider when designing its reform? Mexico should focus on a flexible transition period, potential sector exemptions, collaboration with stakeholders, and incentives for early adoption of reduced work hours.