Part One: Conclusions of the Council

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.

A. 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.

B. 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 enables 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 (ECE) 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.

C. 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 National Administrative Offices (NAOs) shall develop a multiyear 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.

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 Council of Ministers 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 multiyear 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.