Claudia Sheinbaum’s Commitment to 40-Hour Workweek Faces Challenges
Mexico City’s President Claudia Sheinbaum has pledged to reduce the standard workweek to 40 hours, aiming for a more balanced work-life experience. However, without a comprehensive strategy that includes incentives for businesses, this ambitious goal risks falling short.
A Lesson from Chile’s Experience
In Chile, a similar reform took six years to be approved in 2023. Their approach focused on three key aspects: effective rest, gradual implementation with economic responsibility, and social dialogue. Giorgio Boccardo, Chile’s Labor Minister, emphasized the importance of a strong social and political agreement for such reforms.
Incentives for Private Sector: A Crucial Element
Chile’s government recognized that reducing working hours involves more than just removing hours from the calendar; it requires transforming processes, adapting schedules, and redesigning production methods. To facilitate this change, they offered incentives to the private sector – a concept that has been absent in Mexico’s recent administrations.
In Chile, small and medium-sized enterprises that proactively implemented the reform received concrete benefits. In contrast, Mexico has not considered similar incentives during the past two administrations, nor during the pandemic or any of the 15 labor reforms enacted.
The Mexican Context: A Large Informal Sector
Approximately 72% of employed individuals in Mexico work for small, medium, or microenterprises. According to ENOE, over a quarter of those with formal employment work more than 48 hours per week. For many productive units, shortening working hours without support could mean losing competitiveness or further informalizing jobs.
The Need for a Coherent Public Policy
While businesses must take responsibility, a labor reform of this magnitude requires a coherent public policy, especially considering that companies are expected to reduce working hours by two hours annually over the next few years to reach 40-hour workweeks by 2030.
Incentivizing technology investment, supporting employee training, facilitating formal hiring, and establishing differentiated tax schemes are not concessions but necessary conditions for the reform’s success.
The risk of advancing without these mechanisms is twofold: either the reform becomes sector-specific exemptions or fails to be implemented in practice, particularly within the formal economy’s margins. The best-case scenario would be uneven outcomes; the worst, a regressive effect.
Learning from Chile’s Success
Chile’s experience demonstrates that a well-planned strategy, built on agreements, evidence, and accountability, can lead to successful labor reform. Mexico still has the opportunity to avoid the mistake of believing that legislation alone is sufficient.
Key Questions and Answers
- What is the goal of reducing the workweek to 40 hours? To create a more balanced work-life experience and dignify labor in Mexico.
- Why are incentives for businesses crucial? They facilitate the transformation of processes and adaptation to new working hours, ensuring that the reform does not negatively impact competitiveness or lead to further informalization of jobs.
- What challenges does Mexico face in implementing this reform? The absence of a comprehensive strategy with incentives for businesses, coupled with a large informal sector and the need for coherent public policy.
- What lessons can Mexico learn from Chile’s experience? A well-planned strategy, built on agreements, evidence, and accountability, is essential for successful labor reform.
