The Chamber of Deputies returned to the constitutional committees the report proposing a reduction in working hours from 48 to 40 hours.

The reduction of the workweek in Mexico remains a trending topic, following the decision by the Board of the Chamber of Deputies to return the reform bill to the Constitutional Points Committee without any approval.

Why Has the Labor Hours Reduction Reform Not Been Approved?

In the final days of November 2023, members of the Board of the Chamber of Deputies made a series of recommendations and changes to the project that proposes to reform Article 123 of the Constitution, which anticipates a reduction in the working week from 48 to 40 hours.

Consequently, the reform bill was returned to the Constitutional Points Committee to reconsider and address the recommendations made during the open parliament. The next step is for them to create a new report for further analysis and discussion.

Jorge Romero, President of the Political Coordination Board (Jucopo), noted that it's unlikely the new discussions, changes, and approval by the Pleno de San Lázaro will reach an agreement or approval regarding the reduction of working hours for 2023.

"In 2023, it becomes a constitutional reform, because even if it comes out in this Chamber, if we do it in early December, it's impossible for the Senate to do it. But assuming it came out in the Senate, it's impossible for 17 legislatures, which are about to go into a recess period, to pass a constitutional reform in less than 5 minutes, that's what I meant," said Jorge Romero.

Who Would Benefit from the Work Hour Reduction if Approved?

Workers who would enjoy the reduction from 48 to 40 hours per week, if approved, are those who are formally contracted, meaning they have all the benefits indicated by the Federal Labor Law (LFT). However, those under a "fee" or "independent worker" regime would not benefit, nor would those who do "home office."

Current Labor Reform in Mexico for Maquiladoras:

The Federal Labor Law establishes a working week in Mexico of 48 hours spread over six days with a day of rest. "For every six days of work, the worker should enjoy at least one day of rest," states the Constitution.

Maquiladoras, the manufacturing plants operating in Mexico, often under foreign ownership, have seen progressive changes due to recent labor reforms. These changes, guided by the Federal Labor Law (Ley Federal del Trabajo) and the USMCA (United States-Mexico-Canada Agreement), are enhancing the operational environment in several ways:

• Labor Contracts and Union Transparency: A key aspect of the reform is the emphasis on transparent labor contracts and the democratization of unions. Maquiladoras must now ensure that their labor contracts are fair and transparent, and that workers are freely able to join or form unions without employer interference. This change aims to empower workers and promote fair labor practices.
• Improved Labor Conditions: The reforms demand better working conditions in maquiladoras. This includes adequate safety measures, reasonable working hours, and the provision of necessary facilities to ensure the well-being of the workers.
• Greater Enforcement of Labor Rights: There is now a stronger enforcement mechanism for labor rights in maquiladoras. The Mexican government, in compliance with international agreements like the USMCA, is more rigorously overseeing the implementation of labor laws to protect workers, especially in industries like the maquiladoras.
• Wage and Benefit Improvements: The reforms also focus on improving wages and benefits for maquiladora workers. This includes ensuring fair pay for overtime and providing benefits that align with international labor standards.
• Environmental and Health Standards: Maquiladoras are also required to adhere to stricter environmental and health standards. This part of the reform is aimed at ensuring the manufacturing processes are environmentally sustainable and that workers’ health is not compromised.

These reforms are part of Mexico's efforts to modernize its labor laws and align them with international labor standards, particularly in the context of the USMCA. For maquiladoras, adapting to these changes is not only about compliance but also about improving competitiveness and sustainability in the global market.

Curern Shifts in Maquiladoras in Mexico:

CPI: Your Expert in Talent Management in Mexico

At CPI, we closely monitor the evolving landscape of labor reforms and manufacturing conditions in Mexico. Understanding these changes is crucial for businesses looking to optimize their operations and talent management strategies. Our team of experts is dedicated to providing insights and solutions tailored to the unique challenges and opportunities in Mexico's manufacturing sector.

As the discussion around labor reforms, particularly the proposed reduction of the workweek from 48 to 40 hours, continues to evolve, it's essential for companies to stay informed and adapt accordingly. These reforms have significant implications for talent management, operational efficiency, and overall business strategy.

CPI specializes in navigating these complexities, ensuring that your business stays ahead of the curve. If you have any questions about manufacturing in Mexico, labor reforms, or need guidance in managing your talent effectively, don't hesitate to contact us. Our team is here to support you in making informed decisions and maximizing your business potential in Mexico.

Contact us today to learn more about how we can assist you in optimizing your talent management strategies in the evolving Mexican market.