Impact on productivity, costs, and competitiveness.
By Víctor del Ábrego
February 2024
Concerned that directly affects us as leaders in the Mexican manufacturing industry, in recent months there has been a discussion in the Congress about the very likely reduction of the existing workday, which would go from 48 to 40 hours. We don't know how and when; we don't know if it will be gradual (as in Chile) or in a single step; We also don't know what will happen to the full workday, mixed and night shifts.
This proposal, although presented with the intention of improving the quality of life of workers, will undoubtedly have significant repercussions on productivity and, therefore, on costs and competitiveness of companies.
The Challenge: A Shift in the Labor Paradigm
The 17% reduction in available working time poses an unprecedented challenge for the industry; Especially considering historically the productivity records that we have recorded in recent years. Productivity that, according to data from reliable sources, instead of improving, we have regressed, especially if we compare ourselves against other countries against which we compete to have a presence in the most important market in the world, which is the United States of America. In an environment where efficiency and time optimization are crucial, this measure will impact our ability to meet delivery deadlines, maintain product quality, and meet market demand.
The role of the Human Resources area in adaptation
Faced with this reality, the Human Resources area becomes a key player in our adaptation strategy. It is a priority to take a proactive and strategic approach to mitigate the negative effects of this reduction in working hours.
Some actions:
1.- Process optimization
It's time to review and optimize our production processes. Identify areas of inefficiency and look for solutions that allow us to maintain high levels of productivity with our new working hours. We need KPIs and a likely measurement tool in OEE.
2.- Investment in technology
Technology can be our ally in this adaptation process. Automation and the implementation of intelligent systems can help us maximize efficiency and compensate for the reduction in working time. I wonder what countries like Germany and others have done to have working hours below 40 hours for a long time now.
3.- Training and talent development
It is crucial to invest in training and development of our team. Improving the skills and competencies of our workers will allow us to optimize their performance in less time, thus compensating for the reduction in working hours. This is a fundamental point where the FH area must contribute to its significant improvement.
4.- Work Flexibility
Exploring flexible work options or implementing flexible schedules can help us adapt to new conditions and maintain high levels of productivity.
5.- Foster a Culture of Efficiency
It is essential to promote an organizational culture oriented towards efficiency and commitment. Encouraging collaboration, teamwork and innovation will help us overcome the challenges that arise with the reduction in working hours.
6.- Trade Union Participation
The participation of union leaders, their commitment and involvement, will be a very valuable support to achieve this desired productivity. Again, the FH area is critical to achieving this involvement and commitment. We understand our paternalistic labor legislation does not contemplate an economic benefit for the worker linked to productivity; This is one of the pillars or points of support on which we must build a new work environment.
Conclusions:
While the reduction in working hours presents significant challenges for our companies, it is also an opportunity and watershed to innovate and improve our processes. The HR area plays a crucial role in this transformation, and it is essential that we work together to find solutions that allow us to maintain and improve our competitiveness in the market.
Let's enrich the dialogue.
Let´s face this challenge with determination and strategic vision. Together we can turn this situation into an opportunity to strengthen our company and ensure its long-term success and permanence.
About the author:
Víctor del Abrego, CEO at Litografia D'Ortega, a folding carton packaging converter company with more than 50 years of experience in the Mexican market.
If you are interested in how nearshoring can benefit your packaging operation with folding carton packaging, write us at info@dortega.com.mx , contact us by WhatsApp +52 33-1162-4934 or visit https://dortega.mx/en
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