Castellán

A regional trend gaining strength

In recent years, countries like Chile, Mexico, Colombia, and Ecuador have approved or debated laws to reduce weekly working hours. The trend responds to global changes in employment organization, technological advances, and union demands seeking to improve the balance between personal and professional life.

Among the highlighted benefits are improvements in quality of life and advances in gender equality, allowing women and men to better balance their family life with work. But the risks are not minor: productivity and reconciliation with salaries are the Achilles' heel of this discussion, especially in industrial sectors and activities with processes that cannot be simplified without compromising quality.

The debate in Uruguay: new authorities, new agenda

With the change of government in March 2025 and the arrival of new authorities in the Ministry of Labor and Social Security (MTSS), the issue regains strength in the public agenda. It also coincides with the start of the 11th Round of Wage Councils, where the reduction of the workday is among the union demands, following the line set by the PIT-CNT.

In this context, the National Director of Labor - Marcela Barrios explained days ago at a business event the position of the Executive Branch: the issue is under analysis within a commission within the scope of the Tripartite Superior Council (a coordination and governance body that among its functions has to study and adopt initiatives on issues it deems relevant for the development of labor relations), integrated by delegates from the Executive Branch, delegates from the most representative employer organizations, and delegates from the most representative worker organizations.

This space has technical teams that are analyzing the potential impact on productivity, seeking a model that adapts to the Uruguayan reality, its labor relations system, and collective bargaining mechanisms. There is no immediate bill: the aim is to consolidate technical inputs as a first step.

Regarding the ways to move forward, Barrios identified two main alternatives:

1. Consensual bill between employers and workers, which the MTSS could submit to Parliament.

2. General framework agreement that serves as a reference for each productive sector to adapt it to its reality in negotiation tables. This would allow, for example, in some sectors, the reduction to be achieved by eliminating the Saturday workday, while in others it implies shortening the daily hours. Sectors like the industrial one, with continuous production processes, would require different solutions than commerce or services. A uniform regulation may not be the best option.

The objective, she emphasized, is to build a reference framework that “trickles down” to sectorial negotiation. For this reason, the issue was not included in the government's guidelines for the current Round of Wage Councils, so it is expected to be included in the next one.

Also, from the MTSS, it has been highlighted that:

- The regulations governing the workday in Uruguay date back to the early 20th century and require a review in light of current changes.

- It is not expected that a reduction in hours will automatically generate more employment, as international experience has already shown.

- The focus is on reorganizing work, optimizing processes, and incorporating technology to sustain productivity.

- The reduction could be applied on a weekly, biweekly, or annual basis, including, for example, more rest days, holidays, or leaves.

With this definition, the Executive Branch indicated that the issue is not part of the guidelines of the current Round of Wage Councils, but it will surely be a matter of discussion in the next one.

Collective bargaining and union platforms.

At the same time, a new round of Wage Councils is advancing, the tripartite negotiation space where unions, business chambers, and government define collective agreements by branch of activity. In this context, and in line with what the National Director of Labor expressed, although unions have included the reduction of the workday among their demands, the Ministry of Labor and Social Security has indicated that the issue is being addressed in a specific commission. This, while not preventing the parties from negotiating on a sectoral level, suggests that the main discussion will be postponed to the next Round.

The challenges for companies: a look from the business reality

While the reduction of the workday sounds attractive, in some sectors, it is unfeasible in practice. In sectors with continuous processes, high seasonality, or strong dependence on labor, reducing hours can result in higher costs or loss of competitiveness.

The reorganization of tasks and the incorporation of technologies that allow maintaining productivity with fewer hours require investments and a reasonable adaptation time, which not all companies are able to face immediately. Therefore, it is essential to address the issue with flexibility, seeking solutions that fit the particularities of each sector and avoiding rigid impositions that could compromise competitiveness.

The debate is just beginning: with a new government and an active union agenda, the reduction of the workday will be a central issue in the coming years. From business advice, the challenge will be to anticipate, actively participate in the discussion, have “a seat at the table,” and ensure that any change preserves the sustainability and competitiveness of companies. The key will be to build solutions adapted to each productive reality, allowing progress without compromising the viability of the business.

Montevideo, September 2025