With the reform to reduce the workweek to 40 hours already approved by the Congress of the Union and on the verge of becoming constitutional, Aguascalientes businesswoman and Miraplástek CEO, Conchita Miranda, warned that
the impact will be significant, particularly for the manufacturing sector, where a reduction in working hours directly translates to lower production.
“It’s a fact, they’ll start next year, two hours at a time,” she stated regarding the gradual implementation scheme planned for the coming years. Although she acknowledged that the phased approach allows companies time to prepare, she believes many might not be reacting with the necessary anticipation.
“Now is the time, right now, for us to be doing something to prepare,” she expressed. Miranda explained that while in administrative areas the reduction could be offset by greater efficiency or technological tools, in the manufacturing industry, the effect is direct. “What do you do with a machine that operates eight hours and produces a certain output in those eight hours? Well, if it operates for six hours, it will yield 20% less production; there’s no way around it,” she asserted. She added that reorganizing shifts will also entail complex adjustments in production plants.
“Three eight-hour shifts make 24; when they are no longer eight-hour shifts… it’s a very significant cultural change,” she stated. She also referred to the need to redesign operational schemes that have functioned for years under the 48-hour weekly model. In the commercial sector, she explained, the challenge will be different but equally costly, as more personnel will be required to cover extended hours.
“If people are going to work fewer hours, then more personnel will be needed,” she indicated. One of the points that most concerns the Aguascalientes businesswoman is the potential growth of the informal economy if labor flexibility schemes are not adjusted.
“Mexican workers who do not have all their needs met will use those hours they’re not working to look for another job,” she warned. She added:
“If we don’t allow them to work legally within companies… there will be more informal economy.” Therefore, she insisted that the overtime regime must be reviewed and mechanisms explored to allow more flexible schemes without losing formality.
“What we cannot afford is: fewer hours are worked, and overtime cannot be paid,” she maintained. Finally, Miranda considered that the 40-hour workweek reform represents a structural change in the country’s labor culture and that, although the government has areas for improvement in implementation, the business sector must also do its part.
“The times we’ve been given time to prepare, we haven’t taken advantage of it,” she concluded.
This article
first appeared in Líder Empresarial.
