The national forums begin with conflicting positions between entrepreneurs and unions. Querétaro is ready for hosting one of the six national forums convened by the Department of Labor and Social Welfare (STPS) to analyze the reduction of the work week to 40 hours. The discussion about this change to the Federal Labor Law begins this Thursday, June 19, in Mexico City and it will end on July 7 in Cancún.
The Querétaro venue will be the meeting point on July 3, with the participation of more than 40 specialists, entrepreneurs, workers and representatives of civil society. The objective of this forums is to build consensus for a reform that is planned to be implemented gradually up to 2030.
Querétaro seeks to be the national model.
Carlos Alcaraz, secretary of the Querétaro Government, informed that the state is already preparing for receiving the forum and pointed out that it will be a public and inclusive exercise. “Querétaro will stand out as an example at the national level in the implementation of this new work week”, he stated.
The event will be coordinated by the STPS, with the support of the state Department of Labor and the Undersecretariat of Human Rights. As stated by the official, the challenge will be to maintain productivity without sacrificing labor rights.
The topics to be discussed in the forums include: productivity and salaries, labor costs, graduality, the work week in other countries and labor welfare. These meetings will be the basis for the presentation of a reform bill on July 31; this bill will be sent to the Federal Congress on September 1.
Conflicting positions between sectors
While the forums seek to reach agreements, the positions of entrepreneurs and unions are still widely different. On the one hand, the Confederation of Mexican Workers (CTM) proposes the immediate reduction to 40 hours of weekly work, with full pay for 56 hours, two mandatory rest days and the prohibition of work during weekends, except with express agreement by the worker.
The union position rejects the idea that the change be implemented gradually. Additionally, it promotes specific proposals for each economic sector, as is already the case in the food industry, where union leaders are preparing their own implementation schemes.
On the other hand, the business sector insists on the need to apply the reform in stages. Francisco Cervantes, of the Business Coordinating Council (CCE), argues that many industries, like the automotive, construction or metalworking industries, depend on long hours and continuous shifts.
Risks for small and medium-sized industries.
Ricardo Martínez Rojas, labor expert at the D&M Legal Firm, pointed out that “SMEs will be hit the hardest if the reform is applied immediately.” He added that it is fundamental to consider flexible schedules and avoid a rigidity that can result in the loss of jobs.
Not reforming the Constitution, but only the Federal Labor Law in order to have more flexible schemes, stands out among the proposals from the business sector. It is also proposed that overtime be exempt from the payment of ISR [Income tax] and IMSS [Social Security dues], and that social welfare benefits be once again 100% deductible.
According to the employers’ sector, productivity must be increased before reducing hours. Additionally, they suggest that the distribution of the 40 hours be made without the need for granting two fixed days of rest, allowing employers to adjust workdays according to their business model.
The road to the Reform: key dates
The calendar proposed by the STPS outlines a clear roadmap:
- June 19: The forums start in Mexico City.
- June 23: Monterrey forum.
- June 26: Guadalajara forum.
- June 30: Tijuana forum.
- July 3: Querétaro forum.
- July 7: Closing forum in Cancún.
It is expected to have the conclusions from all of the forums by July 14. Subsequently, the final proposal will be presented by July 31, and it will be sent to congress on September 1.
A labor reform that seeks to bring dignity into work
Marath Bolaños, head of the STPS, defended the project as an urgent need. “Wellbeing cannot be based solely on income, but also on the time available for life, health, family and community”, he declared.
He added that this initiative seeks labor justice and more humane conditions. He stated that whether the reform should be implemented or not is no longer up for discussion, but rather the timeframe and the specific conditions by region or sector.
The official said that, in spite of the deceleration in the economy and the cancellation of 90 thousand positions in the last two months, there is optimism. The government is confident that employment will continue to be generated, and investment will be attracted, which will allow progress in this labor transformation.
Billionaire businessmen criticize the reform.
While the number of working hours is sought to be reduced in Mexico in order to improve quantity of life, several international entrepreneurs have expressed their disapproval. Carlos Slim, Elon Musk, Sergey Brin and Kevin O’Leary have been critical of the 40-hour work week.
O’Leary, known for his participation in Shark Tank, has openly said that success demands working up to 24 hours a day, seven days a week, particularly at the beginning of a professional career. For him, the concept of work disconnection should not exist.
These statements are in sharp contrast with the position of the Mexican government, which aims for a more balanced work life as a basis for well-being.
What’s next for Mexico?
The discussion on the 40-hour work week marks a milestone for labor rights in the country. For the first time in decades, it is sought to reduce working hours without affecting salaries. The objective is to give the people once more the time that they need to lead full lives.
In the case of Querétaro, the forum that will take place on July 3 will be crucial for hearing proposals and defining specific paths. Entrepreneurs, unions, academics and civil organizations will meet face-to-face, debating a labor model that will define the future of the country.
In spite of differences, dialogue has begun. Mexico is moving toward a labor reform that, if implemented, will transform labor dynamics deeply. The key lies in reaching agreements that guarantee well-being without jeopardizing productivity-
