Unions Raise Concerns Over Mexico’s Proposed 40-Hour Workweek

Mexico’s planned transition to a 40-hour workweek advanced in the Senate this week amid public demonstrations by major labor unions, who argue that the draft weakens the effective reduction of working time and could delay the full exercise of the right until 2030.

The initiative, introduced by President Claudia Sheinbaum in December 2025, is moving through Senate committees as the Ministry of Labor defends a gradual and flexible implementation model. Labor organizations, however, say the version under review preserves structural elements of the existing labor framework that limit its impact. In a joint technical assessment, union representatives warn that proposed changes to how working time is defined can generate disputes and facilitate the underreporting of working time, reports El Economista. 

Marath Bolaños, Minister of Labor, defended the proposal as a constitutional framework intended to set limits rather than impose uniform schedules. “What we want is flexibility in favor of workers, so that working people themselves, in agreement with their employers, can define how their workday will be organized,” said Bolaños after meetings with members of the Senate’s governing coalition. He added that the reform is designed to return time to workers while allowing labor arrangements to reflect the operational realities of different sectors.

The reform seeks to reduce Mexico’s legal workweek from 48 to 40 hours through a staged process ending in 2030. Under the timeline submitted to the Senate, 2026 would mark the start of the transition, followed by reductions to 46 hours in 2027, 44 in 2028, 42 in 2029, and 40 hours by the end of the decade. Federal officials estimate that between 13.4 million and 13.5 million workers who work 48 hours or more per week would be directly affected. Authorities have stated that nominal wages would remain unchanged throughout the transition.

Mexico consistently ranks among OECD countries with the highest average annual working hours, at about 2,128 hours per year, while productivity indicators remain comparatively low. Long workdays often include extended periods of inactivity that increase fatigue without generating proportional gains in output, reports Cronista México. The administration has framed the reform as part of a broader effort to modernize labor standards, rebalance work and personal time, and address structural inefficiencies in the labor market.

Despite this rationale, organized labor has raised objections to the technical design of the proposal under review by the Senate’s joint commissions. The Trade Union Dialogue Table, the General Association of Workers, and the National Union of Workers have announced protests outside the Senate to press for changes. They argue that the draft maintains a six-days-on, one-day-off model rather than advancing toward a five-days-on, two-days-off structure.

A central point of contention is the redefinition of the workday. Labor law now defines working time as the period during which an employee is at the employer’s disposal, regardless of whether tasks are actively performed. The proposed language shifts toward time spent “performing subordinate activities,” a change that unions and labor attorneys say could narrow what qualifies as paid time. Labor lawyer Estefanía Rueda warns that standby or waiting periods could be excluded under this interpretation, particularly in sectors such as call centers, logistics, and customer service operations, where idle or on-call time is common.

The reform also adjusts overtime rules, increasing double-paid overtime to 12 hours per week, capping triple-paid overtime at four hours, and setting a daily maximum of 12 total working hours, including overtime. While the initiative prohibits reductions in nominal wages, unions argue that increased reliance on overtime could raise tax and social security deductions for workers, reducing net income per additional hour worked. Because overtime payments are deductible for employers, union groups have also warned of a potential decline in the overall pool of profit-sharing distributions.

From a health and safety perspective, unions caution that without stronger collective bargaining mechanisms, companies may respond to shorter formal schedules by intensifying workloads. Under that scenario, workers could log fewer hours on paper while facing higher physical and mental demands, increasing risks related to fatigue, stress, workplace accidents, and work-life balance.

Business groups have expressed conditional support for the gradual approach, emphasizing the importance of predictability and operational flexibility. Employer associations grouped under the Business Coordinating Council and COPARMEX say the phased timeline allows companies time to reorganize shifts, staffing, and processes. However, labor specialists and accounting professionals have pointed to the broader economic context. Over half of Mexico’s workforce operates in the informal economy, and most formal employers are micro, small, or medium-sized enterprises (MSMEs) with limited capacity to absorb higher labor costs.

Didier García, President, Commission Before Social Security Organizations at the Mexican Institute of Public Accountants, cautions that reducing hours without a clear productivity strategy could place pressure on smaller firms. He argues that there is limited evidence that shorter working hours alone translate into productivity gains in the Mexican context, raising concerns that some employers may respond by cutting jobs, increasing overtime reliance, or shifting activity into informality.

Technology providers see digitalization as a key tool for managing the transition. Fernanda Cater, Country Manager, Sesame HR, says recent regulations on workplace well-being and remote work have already accelerated the adoption of digital workforce management systems. She argues that electronic time tracking, real-time data, and people analytics allow companies to focus on outcomes rather than physical presence, particularly in hybrid or shift-based environments. According to Cater, organizations using integrated platforms report reductions of 30% to 40% in time spent on repetitive administrative tasks, freeing HR teams to focus on workforce planning as schedules evolve.

Supporters of the reform within Congress say the gradual rollout is intended to incorporate these operational adjustments. Ignacio Mier, President, Senate’s Joint Coordination Committee, says the proposal is structured to extend labor rights while avoiding disruptions to production. “It will be gradual, it will be flexible, and worker organizations will be included in regulating it according to the characteristics and specific activity of each sector,” says Mier. He adds that the initiative reflects extensive consultations with employers, unions, academics, and technical experts, similar to the process followed during previous labor reforms.

The Senate is serving as the chamber of origin for the initiative, which is expected to be sent to committees and potentially brought before the full chamber for a vote. Bolaños has reiterated in meetings with parliamentary groups from MORENA, the Labor Party, and the Green Party that the reform constitutionally recognizes a 40-hour workweek while reaffirming the eight-hour maximum workday. He says that the proposal defines maximum limits rather than prescribing fixed schedules, particularly in sectors such as manufacturing, services, and agriculture, where operating cycles vary.

If approved by the Senate, the initiative will move to the Chamber of Deputies for further debate. As the discussion advances, attention is increasingly focused not only on the number of hours worked, but on how working time is defined, measured, and compensated. That distinction is likely to shape labor relations, compliance practices, and cost structures across Mexico’s economy as the country moves toward a shorter workweek by the end of the decade.