The left-wing government has just had the 40-hour week adopted, instead of 45. And this is an event on a continent, Latin America, where people work more like 48 hours.
The vote, this Tuesday, April 11, triggered scenes of jubilation in the spans of Congress, meeting, as always, in Valparaiso on the Pacific Coast and not in the capital Santiago. On Chilean national television, the tone was solemn: “It’s 1:30 p.m. this Tuesday, April 11says the commentator (so 7:30 p.m. in Paris). And here’s the vote!”. A tidal wave appears on the electronic scoreboard: 127 votes for, 14 against. Only the extreme right voted against. Labor Minister Jeannette Jara is on the verge of tears. Hugs, cries of joy in the spans of Congress. The emotion is palpable, the Chilean deputies have the feeling of having passed a historic law that will change lives: to increase the legal weekly working time from 45 to 40 hours.
In this country of 19 million inhabitants, long marked by liberalism from the American school of the Chicago Boys, this law is heavy with symbolism. It was a project originally carried out by the Communist Party. And it was one of the campaign promises of the young left-wing president Gabriel Boric. The goal, he says, is that parents have more time to spend with their children. Whether they have a “fuller life”.
The common practice of 48 hours a week
This is a message to other Latin American countries where the average is closer to 50 hours. Chile is only the third Latin American country to adopt the 40-hour week. It joins Ecuador and Venezuela. In most countries in South America or Central America, the rule is 48 hours per week. For example in Chile’s big neighbour, Argentina. And also in Mexico, Peru, Colombia. These are averages found in Asia or the Middle East. A few Latin American countries have nevertheless moved to a 44-hour week, for example Brazil or Honduras. But 40 hours, closer to European canons, is a rarity. That said, we must make a major clarification: we are only talking about official working time. In Latin America, the informal economy remains very important, 27% of the workforce in Chile is concerned. And there inevitably, the legal benchmarks are a bit of an illusion.
Gradual entry into force by 2028
In Chile, the reform will come into force gradually. It must first be formally ratified by President Gabriel Boric. This will be the case on May 1, again an obvious symbol, it is Labor Day. Then, the implementation will be spread over five years: within a year, 44 hours. Then in three years, 42 hours and in five years, 40 hours. Companies will be able to organize work as they see fit, for example switching to a four-day week if they prefer. There will also be exemptions in certain key sectors for the Chilean economy such as transport or mining. The working time authorized there will be 52 hours but with an obligation to recover in days. And of course, everything will have to be done without a reduction in salary. The Chilean government is convinced that the gain in productivity will compensate for this reduction in working time.