MercoPress. South Atlantic News Agency

Will Uruguay cut down the work week?

The eight-hour workday in Uruguay was officially established in 1915. Photo: Sebastián Astorga

Uruguay is currently debating a potential reduction in its maximum legal work week from 48 to 40 hours, a significant discussion for a country that pioneered the eight-hour workday over a century ago. The Ministry of Labor and Social Security (MTSS) is facilitating dialogues between unions, businesses, and economic experts to explore this possibility.

“It does not seem to be a reform of the magnitude of that of more than 100 years ago. But it is an idea that is being put on the table,” Marcela Barrios, national director of Labor, told Montevideo's El País. “Reducing working hours could even mean increasing the amount of time off during the year. What we are clear about is that we are interested in moving in that direction,” she added as her team examines experiences elsewhere.

Unions, led by the PIT-CNT, are advocating for the 40-hour week, arguing that the current 48-hour standard is outdated given technological advancements and that workers need more time for leisure and personal development.

However, the business sector expresses caution, emphasizing the need to link any reduction in hours to productivity gains and acknowledging that the impact would vary significantly across different sectors and company sizes. They highlight that 78% of Uruguayan companies are micro or SMEs, and the country's hourly productivity is 30% below the OECD average.

The MTSS is studying various international examples of reduced working hours, including France's 35-hour week (implemented in 2000), which saw a long-term reduction in annual working hours, Iceland's trials (2015-2019) with 35-36 hour weeks, which were deemed an “overwhelming success,” leading to less stress and better work-life balance with stable productivity, the UK's 2022 pilot of a four-day week, which resulted in reduced stress and burnout, and higher productivity for participating companies, and Chile's gradual reduction from 45 to 40 hours (2024-2028).

The Uruguayan government plans to utilize the Tripartite High Council to navigate these complex discussions. While some Uruguayan companies are already experimenting with reduced hours, the challenge remains to find a solution that balances worker well-being with economic realities and productivity concerns, adapting the approach to various industries and business models.

The eight-hour workday in Uruguay was officially established by Law No. 5,350, known as the “eight-hour law,” which was enacted on November 17, 1915, and published in the Official Gazette on November 19, 1915.