Workweek Reform Raises Operational Concerns in Automotive Sector

Mexico’s proposal to reduce the workweek from 48 to 40 hours is advancing toward the Senate, prompting concern in the automotive sector, where production relies on tightly coordinated schedules and continuous operations. As the federal government prepares to present the initiative, companies warn that the reform could reshape staffing models, increase labor costs and pressure production lines built around rigid timing.

The industry is divided. “What we seek is greater productivity, and everything will converge once the laws are implemented, because today there are two very polarized positions,” says Norma Godínez, CHRO, Kelly México, to Expansión. She says that only 55% of automotive companies support the reform, while 45% express partial agreement, rejection, or uncertainty.

The legislative push began on May 1, when President Claudia Sheinbaum reaffirmed her commitment to pursue a shorter workweek. The Ministry of Labor and Social Welfare (STPS) followed by hosting consultation forums through May, June, and July with unions, employers, specialists, and international organizations. According to Deputy Patricia Mercado, the discussions generated enough technical evidence to move forward, with broad support for gradual adoption, pilot programs, and targeted assistance for small and medium-sized manufacturers.

By Nov. 24, however, the timeline shifted, reports El Reforma. President Sheinbaum announced that the proposal will indeed be formally presented before the end of 2025, but its approval will likely occur in 2026, citing ongoing negotiations with business groups and worker representatives. The delay contradicts previous expectations from the STPS, which had suggested the initiative could be filed in late November. Legislative leaders confirmed that while the text is nearly ready, consensus-building remains the government’s priority before sending the reform to Congress.

Inside the automotive sector, the operational consequences appear significant. Kelly’s analysis shows that 29.67% of companies expect to reorganize shifts, a change that could affect logistics, procurement, and sequence-sensitive assembly processes. Another 23.44% anticipate higher labor costs tied to new hiring and increased benefit and social security obligations. The workforce structure adds complexity: 39.26% of automotive employees work 48-hour weeks, and 28.18% exceed that threshold, while only 8.85% work fewer than 40 hours. Companies say this distribution makes it difficult to implement adjustments without revisiting line structures, workforce planning, and timing.

Employers are also assessing potential impacts on productivity and turnover. Survey responses indicate concerns about output declines and workforce instability, with only 18.66% expecting improvements in employee well-being after the transition. 

A portion of companies is considering faster deployment of automation to absorb some of the effects of reduced working hours. Kelly’s data shows that 10.05% of firms expect to increase automation investments, including AI and digital coordination systems, to reduce pressure on staffing. 

Political activity has accelerated through November. Sixteen separate proposals related to reducing weekly hours have accumulated in the Chamber of Deputies, including recent projects from the Labor Party and Citizens’ Movement. Some state congresses have also called for related amendments to the Federal Labor Law, such as regulating premium pay for Saturday shifts. Legislators expect that once the federal government submits its draft, the existing initiatives will be consolidated into a single text. 

While lawmakers previously anticipated a preliminary opinion before the session ends and a Senate discussion in early 2026, Sheinbaum’s Nov. 24 announcement now places final approval squarely in 2026, with the possibility of an extraordinary session if consensus is reached.

Industry groups have also been active in the debate. The Mexican Association of Human Capital Companies (AMECH) contributed recommendations centered on flexibility and phased adoption, with Francisco Martínez, President, AMECH, emphasizing the need to consider structural differences between sectors such as agriculture, retail, and manufacturing. He underscored the importance of cost-control strategies and operational redesign to support the transition.

Many other sectors will likely be affected. In the mining industry, which operates 24/7/365, companies anticipate significant adjustments to shift structures, staffing, and safety oversight. Rubén Cano, Founding Partner, CR Legal Partners México, says that the reform’s expected phased rollout between 2026 and 2030 will require extensive planning to prevent operational disruptions. Drawing from cases in Chile, Colombia, and the European Union, he says that international experiences demonstrate that shorter workweeks can be implemented without productivity losses when supported by gradual timelines and incentives.