VI. Annex: NAALC Background
and Structure
A. The Commission
The Commission, consisting of a Ministerial Council and a Secretariat, is an
international organization created under the North American Agreement on Labor Cooperation
(NAALC), which entered into force on January 1, 1994.
Through the NAALC, the continental trading partners seek to improve working conditions and
living standards, and commit themselves to promoting eleven Labor Principles to protect,
enhance and enforce workers' basic rights. To accomplish these goals, the NAALC creates
mechanisms for cooperative activities and intergovernmental consultations, as well as for
independent evaluations and dispute settlements related to the enforcement of labor laws.
B. The Council
A Cabinet-level Ministerial Council and a Secretariat make up the Commission for Labor
Cooperation. The Council is composed of the Secretary (in Mexico and the United States)
and Minister (in Canada) of Labor of the three NAFTA countries.
Acting as a single entity, the Council oversees the implementation of the NAALC and
directs the activities of the Secretariat. The Council also promotes tri-national
cooperative activities on a broad range of issues involving labor law, labor standards,
labor relations and labor markets.
C. The Secretariat
The Council is supported by the Commission's Secretariat based in Dallas, Texas, USA.
The Secretariat staff is drawn equally from the three NAFTA countries. It includes labor
economists, labor lawyers and other professionals with wide experience in labor affairs in
their respective countries. They work in the three languages of North America - English,
French and Spanish - in a unique multinational institution devoted to advancing labor
rights and labor standards as an integral part of expanding trade relations.
Secretariat Staff
The NAALC provides that the Secretariat shall be headed by an Executive Director, chosen
for a three-year term, which may be renewed once. The Executive Director appoints and
supervises the Secretariat staff, taking into account lists of candidates prepared by the
Parties. The number of staff positions is initially set at 15, with equitable proportions
of the staff coming from each country.
By the year's end, the permanent staff consisted of:
John S. McKennirey (Canada)
Executive Director
Lance Compa (USA)
Director, Labor Law and Economics Research
Leoncio Lara (Mexico)
Director, Cooperation and Evaluations
Eric Griego (USA)
International Labor Advisor
Alfredo Hernandez (Mexico)
International Cooperative Activities Coordinator
Vacant (Canada)
Senior Legal Adviser
Dalil Maschino (Canada)
Senior Economist
Penny Miller (USA)
Graphics Applications Specialist
Dolores Ozuna (USA)
Executive Assistant
Marcelle Saint-Arnaud (Canada)
Research Documentation Coordinator
Vacant (Mexico)
Publications Coordinator
Dolores Simms (USA)
Financial Officer
Joanne Steinberg (Canada)
International Labor Advisor
María Elena Vicario (Mexico)
Senior Economist
Irene Villalta (USA)
Administrative Assistant
John W. Vincent (USA)
Manager of Operations
Secretariat Functions
The Commission's Secretariat has two principal functions, the first of which is devoted to
information. It undertakes research and analysis, and prepares public reports on:
- labor law and administrative procedures
- trends related to the application of labor law
- labor market conditions, such as employment rates, average wages and labor productivity
- human resource development issues, such as training and adjustment programs
- other matters as the Council may direct
Second, the Secretariat serves as the general administrative arm of the Commission. It
provides support to the Council and to Evaluation Committees of Experts (ECEs) and
Arbitral Panels established by the Council. ECEs conduct tri-national reviews, with
findings and recommendations, on labor law enforcement in specified subject areas.
Arbitral Panels resolve disputes among the governments, if any should arise, in connection
with the specific obligations in the NAALC.
The Secretariat must also report on the results of consultations and evaluations carried
out under the Agreement.
D. The NAOs
The NAALC also requires each government to establish and maintain a
National Administrative Office (NAO) within its labor ministry. The NAOs serve as points
of contact and sources of information among themselves, and with other government
agencies, the Secretariat and the public.
Another NAO function is to receive and respond to public communications regarding labor
law matters arising in another NAFTA country. Each NAO establishes its own domestic
procedures for reviewing public communications and deciding what actions to take in
response to requests made of it.
The NAOs initiate the cooperative activities of the Commission, with the support of the
Secretariat. These include: seminars, conferences, joint research projects and technical
assistance in relation to the eleven NAALC Labor Principles, as well as labor statistics,
productivity and related matters. The NAOs can also engage in direct bilateral and
trilateral cooperative activities.
NAALC Article 15(2) specifies that each NAO is headed by an official whose title is
Secretary. The three NAO secretaries and their offices are:
Canadian NAO
Ms. May Morpaw, Director (Secretary)
Office of the North American Agreement on Labour Cooperation
Labour Branch
Human Resources Development Canada
165 Hôtel de Ville
Place du Portage, Phase II
Hull, Quebec K1A 0J2, Canada
Tel. (819) 994-6231 voice; (819) 953-8494 fax;
Email: naomay@ott.hookup.net
U.S. NAO
Ms. Irasema Garza, Secretary
U.S. National Administrative Office, Room C-4327 FPB
U.S. Department of Labor
Washington, DC 20210, USA
Tel. (202) 501-6653 voice; (202) 501-6615 fax;
Email: igarza@dol.gov
Mexican NAO
Lic. Jorge Castañon Lara, Secretario
Oficina Administrativa Nacional (OAN) del Acuerdo de Cooperación Laboral de América
del Norte
Secretaría del Trabajo y Previsión Social (STyPS)
Periférico Sur #4271, Edificio A
Col. Fuentes del Pedregal - Del. Tlalpan
14149 México, D.F.
Tel. 52-5 645-22-18 voice; 52-5 645-42-18 fax;
Email: oanmex@stps.gob.mx
E. NAALC Objectives
The seven objectives of this Agreement are to:
- improve working conditions and living standards in each Party's territory;
- promote, to the maximum extent possible, the Labor Principles set out in Annex 1;
- encourage cooperation to promote innovation and rising levels of productivity and
quality;
- encourage publication and exchange of information, data development and coordination,
and joint studies to enhance mutually beneficial understanding of the laws and
institutions governing labor in each Party's territory;
- pursue cooperative labor-related activities on the basis of mutual benefit;
- promote compliance with, and effective enforcement by each Party of its labor law; and
- foster transparency in the administration of labor law.
F. NAALC Obligations
The six obligations undertaken by the Parties under the NAALC are:
- Levels of Protection:
- each Party shall ensure that its
laws and regulations provide for
high labor standards, and shall
strive to improve those standards;
- Government Enforcement Action:
- each Party shall promote compliance
with and effectively enforce its
labor law through appropriate government
actions;
- Private Action:
- each Party shall ensure that persons
with a legally recognized interest
under its law in a particular matter
have appropriate access to administrative,
quasi-judicial, judicial or labor
tribunals for the enforcement of
the Party's labor law;
- Procedural Guarantees:
- each Party shall ensure that its
proceedings for the enforcement
of its labor law are fair, equitable
and transparent;
- Publication:
- each Party shall ensure that its
laws, regulations, procedures and
administrative rulings of general
application are made available;
and
- Public Information and Awareness:
- each Party shall promote public
awareness of its labor law.
G. NAALC Labor Principles
The core of the Agreement is its eleven Labor Principles, which define the scope of
labor law coverage under the NAALC. These principles, which the Parties agree "to
promote to the maximum extent possible," are the following:
- Freedom of association and protection of the right to organize.
- The right to bargain collectively.
- The right to strike.
- Prohibition of forced labor.
- Labor protections for children and young persons.
- Minimum employment standards.
- Elimination of employment discrimination.
- Equal pay for women and men.
- Prevention of occupational injuries and illnesses.
- Compensation in cases of occupational injuries and illnesses.
- Protection of migrant workers.
H. Canada's Extent of Obligations
Given that under Canada's constitution, labor law lies primary under provincial
jurisdiction, NAALC Article 46 and
Annex 46 provide that the Canadian
federal government shall inform the
other Parties when Canadian provinces
agree to bind themselves to the NAALC.
Canada is precluded from seeking Ministerial
Consultations on issues arising beyond
the federal labor jurisdiction until
at least 35 percent of the national
labor force is accounted for in the
declaration of Canadian jurisdictions
bound to NAALC provisions, and, in
relation to labor matters of a specific
industry or sector, until 55 percent
of the national labor force is bound
to the NAALC.
Canada's federal labor force jurisdiction
was covered as of January 1, 1994
and on May 31, 1995 Alberta became
the first province to bind itself
to the NAALC. It was expected that,
following months of federal-provincial
negotiations, by early 1997 enough
other provinces would follow Alberta's
lead so that 35 percent of the national
labor force would be located in jurisdictions
bound under the NAALC.
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