I. Council of Ministers

In accordance with the terms of the North American Agreement on Labor Cooperation (NAALC), the Ministerial Council, the governing body of the Commission for Labor Cooperation, should meet in ordinary sessions at least once a year. Although the ministers may send representatives in their place, since the establishment of the Commission, the ministers have personally attended these meetings at least yearly. The ministers' representatives or "designees" have also met periodically and used telephone conferencing to examine operational issues and other matters. On May 13, 1998, José Antonio González Fernández was appointed Mexican Secretary of Labor and Social Welfare, in replacement of Javier Bonilla García. On November 23, 1998, Claudette Bradshaw was appointed Canadian Minister of Labour, in replacement of Lawrence MacAulay.

A.  Ministerial Council Meeting
October 7 - 8, Charlottetown, Prince Edward Island

Lawrence MacAulay, Canadian Labour Minister at the time, hosted the fifth meeting of the Ministerial Council, which was attended by the Secretary of Labor of the United States, Alexis M. Herman, and by the Secretary of Labor and Social Welfare of Mexico, José Antonio González Fernández. The three delegations were joined by John McKennirey, Executive Director of the Secretariat of the Commission for Labor Cooperation.

The main topic of the 1998 meeting was the discussion of the review process of the North American Agreement on Labor Cooperation and of the report covering this process. On the basis of the results of this review, the ministers agreed to implement various measures to further international cooperation and provide the public with greater information. They agreed to increase the Commission's activities by making fuller use of the Secretariat in the areas of compilation and analysis of comparative information on labor issues, together with the development of in-depth studies. They also agreed to make additional efforts to improve the process of ministerial consultations and requested that, in certain cases, the Secretariat undertake special trinational studies. Likewise, a second general review of the operation of the Agreement was approved for the year 2002.

The ministers analyzed the current situation of the submission procedures and ministerial consultations as well as the progress made in the creation of rosters of experts for the Evaluation Committees of Experts (ECEs). The Council agreed to instruct their officials to exchange lists of proposed roster members in order to conclude the appointment of individuals to the rosters.

The Ministerial Council also approved the program of cooperative activities which had been submitted for its consideration, received a report from the Executive Director on current and future Secretariat activities, and approved the budget proposed for 1998 and 1999.

B.  Meeting of the Council Designees and Executive Director
June 24, Dallas, Texas

At this meeting, which was chaired by Warren Edmondson of Canada, the Council Designees made a preliminary evaluation of the final aspects of the NAALC review process and of the report covering this issue. They also discussed the preparations for the Ministerial Council meeting which would take place in October, in Charlottetown, Prince Edward Island in Canada.

The Council Designees met with members of the Commission's external auditors, KPMG Peat Marwick, and received the report on the Secretariat's financial situation for 1997. The audit was described as "in order," and no irregularities were found. With regard to other administrative matters, the Council Designees were informed of a petition made by the State Department of the United States relative to the enforcement of child support payments and examined some personnel policies and their impact on the Secretariat budget.

C.  The Four Year Review of the NAALC

In its Article 10, the North American Agreement on Labor Cooperation (NAALC) requires that the Ministerial Council, which is the governing body of the Commission for Labor Cooperation established by the Agreement, "oversee the implementation and develop recommendations on the further elaboration of this Agreement and, to this end, the Council shall, within four years after the date of entry into force of this Agreement, review its operation and effectiveness in the light of experience."

On September 18, 1997, in accordance with the above requirement, the Ministerial Council adopted a "Process for Review of the NAALC." In addition to issuing an invitation to the public to submit written comments, this process also involved consulting directly with a number of special advisory bodies.

The culmination of that review process is a full report that can be consulted on the Commission's website at www.naalc.org. Part One of the report presents the conclusions of the Ministerial Council. Part Two summarizes the highlights of the consultation process. Part Three presents a description of the NAALC and its institutions and a summary of operations and activities that have taken place under the Agreement from the time it came into force to September 1998. Annexes contain the reports of the Review Committee of Experts, the reports of the National Advisory Committees of both Mexico and the United States, a summary of the results of a survey carried out by the Mexican NAO, a verbatim transcription of all the written comments put forward by individuals and organizations in the public consultation process, and a bibliography.

Following are the Conclusions of the Ministerial Council, which summarize the point of view of the Council on the review process and its findings.

CONCLUSIONS OF THE COUNCIL ON THE REVIEW OF THE NAALC

The Council wishes to express its appreciation to all who have contributed to this review process: the review committee of experts, the National Advisory Committees of Mexico and the United States, the governmental committees of Canada and Mexico, and the organizations and individuals who have participated in the public consultation process. Many specific recommendations have been made (and are reproduced in this report), and it is a challenge fully to do justice to the serious efforts that lie behind these recommendations. They all merit consideration in their own right and based on their own rationale, and the Council will continue to refer to the recommendations in the years ahead as a source of guidance in the work plans and activities of the Commission.

Today, however, the Council is faced with all these points of view at the same time, and many specific recommendations operate in different, sometimes opposing directions. It is hoped that most of those who are seriously concerned about the NAALC and who have commented publicly on it in writing will find a reflection of their broadest concerns in the following summary of themes. In many areas there is clearly not a consensus, nor is there a consensus within the Council on all matters. This is hardly surprising given the relative newness of this historic Agreement and the tremendously important and often sensitive matters which it addresses for the first time in this new relationship among the three nations of North America. Nonetheless, the Council has made every effort to achieve consensus on a number of important matters at this time, which it believes will improve the future operations and effectiveness of the North American Agreement on Labor Cooperation.

Future Reviews of the NAALC

The NAALC is a new and still relatively untried instrument in some areas. It bears periodic review to ensure it is meeting its objectives and to justify the expenditure of public resources. These reviews can examine achievements in such areas as the comparative study of labor law and labor markets, cooperative activities, and the resolution of concerns related to the enforcement of labor legislation. Reviews should also consider areas for improvement through the redirection of efforts or further elaboration of the Agreement.

Accordingly, the Council has agreed:

• To continue to monitor the effectiveness of this Agreement and to this end shall undertake a second comprehensive review in the year 2002.

Cooperative Consultations and Evaluations

1.  Ministerial Consultations

The Council notes that Ministerial Consultations, as well as the public communications process are flexible and open processes in the NAALC. The Council sees the merit in developing over time some greater uniformity in these areas both to facilitate and streamline the process and to provide a framework for public expectations as to how it will progress. At the same time, the Council sees value in the flexibility of the current provisions of the Agreement which enable the Parties to operate within their own national traditions and to have the time and scope to resolve matters at this stage in a spirit of consultation and cooperation.

Accordingly, the Council has agreed:

• To use best efforts to conduct Ministerial Consultations as rapidly as possible.
• On a case by case basis, to use the "special studies" mechanism of Article 14(2) as a means of making progress in appropriate matters under consultation
• To consider other means of improving the Ministerial Consultations process.

2. Evaluation Committees of Experts

The Council has noted that when the Evaluation Committee of Experts process is undertaken there is an interest that it be in a cooperative manner and without any necessary context or expectation of dispute among the Parties. The Agreement itself explicitly indicates that the work of an ECE is to proceed "in a non-adversarial manner." Moreover, there is no necessary connection in the NAALC between public communications and the establishment of Evaluation Committees of Experts, which are established by the Council solely at the request of a Party if a matter has not been resolved after Ministerial Consultations (Article 23.1).

The Council considers that the primary purpose of an ECE is to provide an independent, expert analysis of an important area of labor law enforcement on a comparative, trinational basis for the mutual benefit of all the Parties. The Council believes that such a process can be a useful way of obtaining a new analytical perspective in important areas of mutual interest.

The Council has agreed that the matter of ECEs will be discussed further at next year's Ministerial Council meeting.

International Cooperation

The Council is pleased to recognize that over the past four years under the NAALC, important new institutions and networks have been established, many fields of common concern have been explored, significant challenges have been identified, and much experience in international cooperation has been gained. The Council is convinced, along with many observers and participants in this review, that there remains much more yet to be gained in achieving the objectives of the NAALC by more substantive and increased international cooperation.

The cooperative program has achieved much so far that has been found to be useful and valuable. The Council shares the views of many, however, who believe the cooperative program is capable of and should reach a significantly greater potential. In the Council's view, the public's "higher hopes" about cooperative activities reflect a general sense of need for substantial international cooperation on labor matters in North America through the institutions of the NAALC. This is likely related to the growing perception of North America as an economic region with profound common interests among the separate nations.

The labor markets of North America are vast and economically critical, highly complex and increasingly interrelated through international trade and investment, and involve a multiplicity of federal, state and provincial jurisdictions. To make significant advances in such a field, even in knowledge and information, is a major endeavor, and requires careful consultation and strategic, long-term planning so as to work in the most productive direction.

With these general considerations in mind, the Council has decided to improve cooperation among the Parties in respect to A) the Program of Cooperative Activities, and B) the work of the Commission for Labor Cooperation.

1. Program of Cooperative Activities

While continuing to build a base of understanding through a broad range of exchanges of information on labor law and labor market issues, future planning should be directed at developing more strategic objectives for cooperation. Cooperative activities should focus clearly on important emerging workplace issues of significant interest to the three countries. Future activities should build on past information exchanges and explore in greater depth the complex and challenging issues which concern policy makers, administrators and legislators in government and labor and business in the private sector. Cooperative activities will require adequate funding, appropriate levels of participation and depth of analysis, as well as concerted follow-up. They will require better evaluation of public impact and broader diffusion of information.

Accordingly, the Council has agreed:

• The NAOs shall develop a multi-year work plan for cooperative activities with strategic objectives, in consultation with National Advisory Committees and public and private representatives, as appropriate to each Party.
• The work plan will include activities focused on the emerging challenges presented by the changing nature of the workplace.
• Cooperative activities will provide for greater public involvement, and more active dialogue on public policy and future directions of each Party's labor policy and legislation.
• The NAOs will develop programs to improve the dissemination of information about labor laws in North America, and will include activities such as education, outreach, technical assistance and training.
• Reports emanating from activities will be produced quickly and disseminated widely, with assistance of the Secretariat.
• The Council shall ensure the NAOs are provided the necessary resources for the Program of Cooperative Activities.

2. Commission for Labor Cooperation

The Council recognizes that the centerpiece of the NAALC is the Commission for Labor Cooperation, which marks a new stage in intergovernmental relations in North America. It consists of the Ministerial Council as its governing body, operating by consensus, and an international Secretariat to assist the Council in exercising its functions. The Council desires to fulfill the potential of the Commission to provide a framework for cooperation through the aegis of a trinational institution undertaking work of common benefit.

Accordingly the Council has agreed:

• The Secretariat shall develop a multi-year plan coordinated with the NAO Program of Cooperative Activities.
• The Secretariat shall work with the NAOs to ensure the rapid publication and wide distribution of the results of NAO cooperative activities, and will itself improve public awareness of the NAALC and the Commission for Labor Cooperation.
• The Secretariat shall prepare a plan to improve the comparability of data on enforcement, labor standards and labor market indicators.
• The Secretariat shall develop proposals for specific in-depth studies on emerging challenges and topics of mutual concern.
• The Secretariat shall organize meetings, seminars, conferences and other forums to promote greater public understanding of the work of the Commission.
• The Secretariat shall provide additional information regarding its resource needs, which the Council shall evaluate and review at its next Ministerial Council meeting scheduled for June 1999.