Colombian Case: Doing More in Less Time
Colombians are also transitioning through a reduction of working hours, moving from 48 hours (like Mexico) to 42 hours weekly.
The implementation began in 2023 and will conclude by 2026. For the first two years, one hour was reduced annually; by July, they need to reduce two more hours, and the following year, another two.
Alberto Ramírez Pizarro, Corporate Relations and Quality of Life Manager at Colombian manufacturing and home, construction, industrial, agricultural, and energy products company Corona, states that he found the reduction of working hours to be a significant challenge as physical presence is crucial in their sector.
Facing the challenge of considering additional staff to cover reduced working hours, Corona opted for dialogues with employees, fostering a conversation to ensure they commit to maintaining productivity despite fewer working hours.
According to Ramírez Pizarro, the hurdles they’ve encountered include employee well-being, productivity, and business sustainability. He believes that while complying with the law and its objective—employee well-being—is essential, the impact on Colombia’s overall implementation relates to “the type of human and business capital.”
He explains that in manufacturing or retail/commerce businesses, where time has specific value, reducing working hours is highly significant. In Corona’s case, with 4,500 employees, they estimate needing an additional 600 workers once the reduction is complete, inevitably increasing labor costs.
Ramírez Pizarro further explains that they’ve developed new work schemes for continuous operations, working 8-hour shifts. The company has implemented a system where employees work 11 days and take a paid day off, resulting in approximately 20 free days annually.
Moreover, they’ve opened dialogues with employees about time, rest, and well-being while addressing the need for productivity. Corona has communicated that instead of hiring more people (which would increase costs), it’s better to organize to achieve the same results in less time, ensuring job security and avoiding risks like stopping furnaces or closing plants.
Employees have generally understood the situation, appreciating Corona’s openness to listen and explain the real circumstances. Many workers have offered to work on the topic and be part of the solutions, striking a balance between the company providing time and employees contributing to productivity.
However, they face a particular challenge with the sales force, whose income depends on time. They view time as an opportunity for earnings and prefer independent management, fearing reduced commissions if working hours are cut.
Ramírez Pizarro states that the labor cost surcharge for Corona will be 14% once the law is fully applied in 2026, currently ranging from 10 to 11 percent. They’re also concerned about losing competitiveness, especially when compared globally to low-wage competitors like China.
Chilean Case: Goodbye Dead Times and Fostering Multifunctionality
When Guadalupe Galindo, an HR consultant in Chile, hears that Mexico’s current working hours are 48, she finds it excessive.
Chile’s reduction process began in 2024, aiming to cut one hour from their 45-hour workweek. By 2026, they’ll reach 40 hours weekly.
Galindo explains that last year, she experienced the reduction process in a transnational warehouse company. Neither they nor any other company wanted to take early action or implement measures.
“Why? Because measuring productivity is difficult, and when we bring that productivity to manual and intellectual labor, it’s two different forms,” she explains.
They implemented a multi-tasking model, where one operator with specific skills could function as a cashier, customer service representative, or stock clerk.
“A turn-based store operator, so if someone is absent or quits, this model ensures operational continuity,” she says.
The company then started enforcing stricter time management and recognized the need to measure productivity through KPIs.
Galindo acknowledges that measuring productivity via these factors is complex, especially for manual and intellectual labor. This complexity makes the implementation challenging, particularly in sectors like mass consumption and retail.
She adds that, like in Mexico, Chilean entrepreneurs face the dilemma of hiring more people, ultimately raising operational costs.
Despite the complications, Galindo highlights that technology, especially artificial intelligence (AI), plays a crucial and multifaceted role in effectively implementing reduced working hours, particularly addressing productivity and operational cost challenges.
She warns that while technology can impact work quality, another challenge is employee resistance fearing reduced job opportunities. For industries or sectors where technology transition and investment are more challenging, Galindo emphasizes the importance of government support to help these companies navigate the transition effectively.
