Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Chile approves bill cutting work week to 40 hours from 45

Published 12/04/2023, 06:27 am
Updated 12/04/2023, 10:31 am
© Reuters. Chile's Labor Minister Jeannette Jara celebrates next to others ministers and parliamentarians the approval of a bill reducing the number of weekly working hours from 45 to 40, in congress in Valparaiso, Chile, April 11, 2023. REUTERS/Rodrigo Garrido

SANTIAGO (Reuters) - Chile's Congress on Tuesday passed a hard-fought bill to gradually cut the work week to 40 hours from 45 hours, a legislative victory for President Gabriel Boric amid faltering popularity.

Boric, who took office last year pledging an ambitious agenda of social and economic reforms, has suffered several setbacks, including voters rejecting a progressive new constitution and legislative defeat for a key tax bill.

But the work week law - which now awaits Boric's signature - constitutes a small victory for an administration that has been trying to shift the country away from its free-market constitution. The new law mandates one less hour a week of work per year until the work week reaches 40 hours, bringing Chile in line with most industrialized nations.

The bill, which had overwhelming support with 127 votes in favor and just 14 against, comes at a time when countries around the world like Britain and Spain are experimenting with reducing weekly work hours further.

Several companies in Chile have already announced that they will adopt the bill, including state-owned copper giant Codelco, which earlier this year said it would seek to implement the 40- -hour work week by 2026.

Some smaller firms have criticized the new law, saying they have insufficient resources to hire more workers and replace lost hours.

Minister of Labor Jeannette Jara told reporters that the gradual implementation was designed to address this, but "the main thing is that we have to make progress in rights for workers."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Design company Organic Style, who introduced the 40-hour week voluntarily during the pandemic, said the change had proven positive.

"It's a very good initiative that has changed our lives," owner Danitza Becerra said.

(This story has been corrected to say work week cut to 40 hours from 45 hours, not 45 hours from 40 hours, in paragraph 1)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.