Background on Key Figures and Relevance
In Guadalajara, Jalisco, representatives from the private sector, including Rogelio Garza, the executive president of the Mexican Automotive Industry Association (AMIA), have proposed a phased and regionally differentiated reduction of the standard 48-hour workweek to 40 hours. This proposal aims to balance productivity and competitiveness for businesses while considering the unique characteristics of each industry and geographical region.
AMIA’s Perspective
During the “Forum for the Implementation of the 40-hour Workweek” organized by Mexico’s Secretariat of Labor and Social Prevision (STPS) at the Universidad Panamericana in Guadalajara, Garza emphasized that the workweek adjustment should account for each industry’s and region’s particularities.
“The change must be flexible and gradual, taking into account the productive dynamics of each sector,” Garza explained. He highlighted that the automotive industry operates on a three-shift system, seven days a week and 365 days a year, to produce 14,000 vehicles daily across 20 assembly plants, eight engine factories, and seven transmission facilities in the country.
Garza also stressed the need for caution regarding labor reforms, given the United States’ tariff policy and the upcoming T-MEC review. He emphasized that understanding the final agreements between the three countries is crucial to assess the impact on their operations. Additionally, Garza proposed complementary measures such as full deduction of social benefits and a review of overtime schemes.
Economic Significance of the Automotive Industry
The automotive industry is a cornerstone of Mexico’s economy, contributing 4.5% to the nation’s Gross Domestic Product (GDP) and 21.7% to the manufacturing GDP by the end of 2024. It directly employs one million people and indirectly supports 3.5 million jobs, with its value chain impacting 60% of Mexico’s economic sectors.
Jalisco Industry’s Proposals
Antonio Lancaster-Jones, coordinator of Jalisco’s Industrial Chambers Council (CCIJ), outlined the state’s industrial sector proposals. These include a phased implementation of reform, deductibility of overtime hours, regional and sector-specific differentiation, and avoiding excessive regulations for small and medium enterprises (SMEs).
“Working conditions vary significantly between Jalisco and other regions like Mexico City or the north, as well as across different industrial sectors,” Lancaster-Jones explained.
Key Questions and Answers
- What is the proposed change? The private sector, led by AMIA, suggests a gradual reduction of the standard 48-hour workweek to 40 hours, tailored to regional and sector-specific needs.
- Why is a phased approach necessary? To balance productivity and competitiveness while considering each industry’s unique dynamics.
- What complementary measures are proposed? Full deduction of social benefits and review of overtime schemes.
- Why is caution advised regarding labor reforms? Due to the United States’ tariff policy and the upcoming T-MEC review, understanding final agreements between the three countries is crucial.
- Why are regional and sector-specific differentiations important? Working conditions, industrial sectors, and geographical regions vary significantly, requiring tailored solutions.
