Reduced working hours will increase prices of products and services: CCE

MEXICO - The Business Coordinating Council (CCE) asked the deputies to allow a dialogue with the employers' sector before approving the reform that reduces the working day from 48 to 40 hours a week, since this constitutional amendment will have consequences for micro, small and medium-sized companies.

Lorenzo Roel, president of the CCE Labor Commission, emphasized that this new initiative will have an impact on overtime and rest days, which will increase labor costs by 25 to 40% and will consequently lead to higher prices for products and services.

In the Open Parliament held in San Lazaro, he mentioned that immediately approving the reduction of working hours for all productive activities will have an impact on SMEs and productive sectors, such as manufacturing, commerce, tourism and gastronomic services.

He also pointed out that it is estimated that such reduction will require covering 105 million hours per week, which are currently taken by workers who work more than 40 hours.

"It will require at least 2.6 million workers to work reduced hours, which is impossible, and the cost of overtime and days off would have an annual impact of approximately US$20 billion," Roel said.

He called on the deputies, before legislating on this issue, to promote social dialogue, consultation and negotiation in accordance with current regulations and also to consider the various productive activities in order to determine in which sectors the reduction of working hours should be done progressively and when appropriate.