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Part Three: Overview of Operations

The following is a description of the key elements and structures of the NAALC, as well as a brief summary of operations and activities (note: the report of the Review Committee of Experts, Annex 1, also summarizes activities under the Agreement). Information is organized under the headings of the NAALC itself: Parts One and Two of the Agreement contain its objectives, obligations and principles; Part Three establishes the institutional framework: the Commission for Labor Cooperation (Council of Ministers and Secretariat), and the National Administrative Offices. Parts Four and Five set out the procedural aspects of the Agreement: Cooperative Consultations and Evaluations and Dispute Resolution.

  1. Parts One and Two of the NAALC: Objectives, Obligations and Principles

    1. NAALC Objectives

      The seven objectives of this Agreement are to:

      1. improve working conditions and living standards in each Party's territory;
      2. promote, to the maximum extent possible, the Labor Principles set out in Annex 1;
      3. encourage cooperation to promote innovation and rising levels of productivity and quality;
      4. 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;
      5. pursue cooperative labor-related activities on the basis of mutual benefit;
      6. promote compliance with and effective enforcement by each Party of its labor law; and
      7. foster transparency in the administration of labor law.

    2. NAALC Obligations

      The six obligations undertaken by the Parties under the NAALC are:

      Levels of Protection: affirming full respect for each Party's constitution, and recognizing the right of each Party to establish its own domestic labor standards, and to adopt or modify accordingly its labor laws and regulations, 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.

    3. NAALC Principles

      The core of the Agreement is its 11 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 (detailed descriptions are contained in NAALC Annex 1):

      1. Freedom of association and protection of the right to organize.
      2. The right to bargain collectively.
      3. The right to strike.
      4. Prohibition of forced labor.
      5. Labor protections for children and young persons.
      6. Minimum employment standards.
      7. Elimination of employment discrimination.
      8. Equal pay for women and men.
      9. Prevention of occupational injuries and illnesses.
      10. Compensation in cases of occupational injuries and illnesses.
      11. Protection of migrant workers.

  2. Part Three of the NAALC: Commission for Labor Cooperation

    Institutions

    In 1994, the first year of operation of the NAALC, the three countries focused on setting up and making operational two NAALC institutions. The national offices to be established by each government within its labor ministry, known as a National Administrative Office (NAO), and the ministerial-level Council. In 1995, the trinational Labor Secretariat was established in Dallas, Texas, U.S.A., and was officially inaugurated on September 26 of that year.

    NAALC institutions are both international (the Council and Secretariat) and domestic (NAOs) in scope. Together, they provide an intergovernmental framework for the interaction of the full range of organizations and individuals involved in labor matters in the NAFTA countries: policy makers, administrators, employers, labor organizations, researchers and academics, legal practitioners, worker rights groups, and individuals.

    1. The Commission for Labor Cooperation

      The Commission for Labor Cooperation consists of a Ministerial Council and a Secretariat and is assisted by the NAO of each Party. Created by Article 8 of the NAALC, the Commission is the institutional framework of the NAALC and the focal point of trinational labor cooperation.

    2. The Council of Ministers

      The Council is composed of the cabinet-level Secretary (in Mexico and the United States) and Minister (in Canada) responsible for labor issues in each of the three NAFTA countries. Acting as a single entity, the Council is the governing body of the Commission and directs the activities of the Secretariat. The Council also promotes trinational cooperative activities on a broad range of issues involving labor law, labor standards, labor relations and labor markets.

    3. The Secretariat

      The Secretariat is created to be the administrative arm of the Council. Its staff is drawn from the three NAFTA countries and 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. 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, defines the responsibilities of, and supervises the Secretariat staff. The number of staff positions was initially set at 15 (subject to modification by the Council), with equitable proportions of the staff coming from each country.

      Secretariat Functions

      The Commission's Secretariat has three principal functions, the first of which is devoted to information. Under Article 14 of the Agreement, it undertakes research and analysis and prepares public reports and studies on:

      • labor law and administrative procedures;
      • trends and administrative strategies related to the enforcement 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; and
      • other matters as the Council may direct.

      Second, the Secretariat provides support to Evaluation Committees of Experts (ECEs) and Arbitral Panels established by the Council. ECEs conduct trinational 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 publishes a list of matters resolved in consultations and evaluations carried out under the Agreement.

      Third, the Secretariat serves as the general administrative arm of the Commission, assists the Council in exercising its functions, and provides such other support as the Council may direct. The Secretariat is meant to enable the Council to carry out a wide variety of initiatives for which general provision is made under the NAALC.

    4. The National Administrative Offices

      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.

      The NAOs coordinate the cooperative activities of the Commission. These include seminars, conferences, joint research projects and technical assistance on matters covered by the 11 NAALC Labor Principles, as well as labor statistics, productivity and related matters. The NAOs can also engage in direct bilateral cooperative activities.

      Another NAO function is to receive and respond to public communications regarding labor law matters arising in the territory of another Party. Each Party establishes its own domestic procedures for reviewing public communications and deciding what actions to take in response to requests made of them.

    5. National Advisory and Governmental Committees

      Articles 17 and 18 provide for the formation of National Advisory Committees and Governmental Committees to advise each Party on the implementation and further elaboration of the Agreement. The National Advisory Committee may comprise members of the public including representatives from labor and business organizations. The Governmental Committee may comprise representatives of federal and state or provincial governments.

      All three countries have established a National Advisory Committee and a Governmental Committee.

      Cooperative Activities of the NAOs

      During the past four years the NAALC has provided the basis for an extensive program of trinational cooperative activities organized primarily by the National Administrative Offices. Under Article 11 of the NAALC, these activities have the purpose of improving the administration of labor laws, promoting greater understanding of each country's laws, policies and practices, and facilitating the exchange of information related to labor issues.

      Each year since 1994 a Cooperative Work Program has been agreed upon by the three NAOs and approved by the Council. The annual programs have included meetings between labor officials of the three countries, joint sponsorship of public conferences and seminars, and specific agreements for sharing technical assistance and training.

      The activities to date have addressed three broad issue areas: a) workplace safety and health; b) employment and training; and c) labor legislation and workers' rights. Article 11 also authorizes the Council to address other matters, whenever the Parties so agree. In the occupational safety and health area, activities have ranged from large-scale public conferences on topics such as high-hazard industries to smaller meetings of government officials, exchanges of technical information and expertise, and raining for inspectors. Labor law and worker rights have been the subjects of activities each year, including major conferences such as the one held in 1996 on Industrial Relations in the 21st Century. In regard to employment and training, a wide variety of programs have focused on issues such as women in the workforce, the growth of nonstandard employment, and child labor, which was the subject of two major events in 1997.

      Cooperative activities have been carried out in two ways. The majority have been organized by the NAOs, either jointly or separately. Others have been directly assigned to the Secretariat by the Council.

      Tables 1 and 2 below demonstrate, since the NAALC came into effect a total of 40 activities were undertaken. Many activities were large-scale events such as trinational conferences (three on occupational safety and health and one on labor law). The early cooperative activities concentrated primarily on occupational safety and health, in part because of the high level of interest among the Parties.

      After the first year of implementation, the pace of cooperative activities slowed somewhat, and the focus became more diverse. The nature of the activities also changed, from training sessions and workshops, which dominated the 1994 cooperative program, to government-to-government meetings and large public conferences. From 1995-1997, an average of seven activities per year were organized. Among these were seminars linked to public communications received by the U.S. NAO, covering freedom of association and the right to organize.

      In 1996 and 1997 other issues such as child labor and women in the workforce were incorporated more extensively into the cooperative activities work program.

      Beginning in 1997 the Secretariat organized an annual conference on incomes and productivity in North America. This has been the primary cooperative activity organized solely by the Secretariat, although it has supported the trinational cooperative work program and participated in most of the activities organized over the past four years.

    Table 1

    LABOR COOPERATIVE ACTIVITIES UNDER NAALC, 1994-1998

    A. Occupational Safety and Health
    Date Activity Location
    1994
    Feb. 21-25 Training course on “Sampling and Laboratory Analysis of Airborne Contaminants” Mexico City
    Feb. 22-24 Course on “Principles of Ergonomics” Mexicali, Mexico
    March Training course on “The use of Synthetic Fibers in the Workplace”  
    April Training course on “Air Sampling Equipment” Mexico City
    Jun. 13-16 “Technical Seminar on Safety and Health in the Electronics Industry” Albuquerque, NM
    Jun. 28-30 Course on “Biohazards” Mexico City
    Aug. 23-25 Training session on “Safety and Health in the Construction Industry” Monterrey, Mexico
    Aug. 30- Sept. 1 Training course on “Industrial Hygiene” Guadalajara, Mexico
    Sept. 12-13 Seminar on “Occupational Safety and Health Statistics” Mexico City
    Sept. 13-15 Training course on “Accident Inspections” Monterrey, Mexico
    Sept. 20-22 Training course on “Hazard Recognition for Industrial Hygienists” Guadalajara, Mexico
    Sept. 28-29 “Technical Seminar on Safety and Health in the Construction Industry” Mexico City
    Nov. 14-17 “Technical Seminar on Safety and Health in the Petrochemical Industry” Edmonton, Canada
    1995
    Jun. 5-8 Annual Meeting of “Senior Occupational Safety and Health Officials in Canada” Vancouver, Canada
    Jul. 13 Familiarization Seminar on OSH Mexico City
    Nov. 7-10 “Construction Study Tour” Dallas, Texas
    1996
    Mar. 25-26 “Occupational Safety and Health Planning Session” Mexico City
    Oct. 27-31 NAALC Petrochemical Study Tour on “Preventing Catastrophic Explosions in the Petrochemical Industry in North America” Orlando, FL
    1997
    Jun. 2-6 “1997 North American OSH Week”  
    1998
    May 18-22 “1998 North American OSH Week”  

    B. Employment and Job Training

    Date Activity Location
    1994
    Jun. 2-3 Technical seminar on “Microenterprises and the Informal Sector” Mexico City
    Oct. 24-25 Workshop on “Productivity Trends and Indicators” Mexico City
    1995
    Jun. 21-22 Workshop on “Equality Issues in the Workplace” Mexico City
    1996
    Apr. 23-24 Workshop on “Continuous Learning and Development in the Workplace” Dallas, Texas
    Jul. 11-12 Government-to-Government Planning Session on: "Child Labor Conference in Agriculture and Garment Industries" Washington, D.C.
    Oct. 3-4 Workshop on “Income Security Programs” Ottawa, Canada
    Nov. 25-26 Tripartite seminar on “Responding to the Growth of Non-Standard Work and Changing Work Time Patterns and Practices” Ottawa, Canada
    1997
    Feb. 24-25 International conference on “Improving Children’s Lives: Child and Youth Labor in North America” San Diego, CA
    Feb. 27-28 1997 North American Seminar on Incomes and Productivity (Secretariat) Dallas, Texas
    Apr. 23-25 Trinational conference on “Women and Work in the 21st Century” Querétaro, Mexico
    Oct. 15-16 Follow-up conference on “Protecting Working Children in North America: A Shared Responsibility” Ottawa, Canada
    1998
    Feb. 26-27 1998 North American Seminar on Incomes and Productivity (Secretariat) Dallas, Texas
    Apr. 1-2 Seminar on “Labor Market Trends and the Role of Governments” Guadalajara, Mexico

    C. Labor Law and Workers Rights

    Date Activity Location
    1994
    Jun. 26-30 Workshop on “Labor Law and Practice” San Diego, CA
    Sept. 19-20 Conference on “Labor Law and Industrial Relations” Washington, D.C.
    1995
    Mar. 27-28 Government-to-government workshop on “Labor Law and Freedom of Association” Washington, D.C.
    Sept. 20-21 Follow-up workshop on “The Right to Organize and Freedom of Association” Washington, D.C.
    1996
    Mar. 18-20 Canada-USA-Mexico tripartite conference on “Industrial Relations for the 21st Century” Montreal, Canada
    1998
    Oct. 29 International conference on “Labor-Management Relations in North American Multinationals: Legal, Cultural and Economic Environments” Washington, D.C.
    Dec. 7-8 Labor management conference on “Contracting Out, Outsourcing: New Forms of Work, New Employment Relationships” Canada

    Table 2
    COOPERATIVE ACTIVITIES BY SUBJECT
      1994 1995 1996 1997 1998 Total
    Occupational Safety and Health 13 3 2 1 1 20
    Employment and Training 2 1 4 4 2 13
    Labor Law and Worker Rights 2 2 1 0 2 7
    Total 17 6 7 5 5 40

    Secretariat Activities

    Since its official inauguration in September 1995, the Secretariat has undertaken a substantial program of publications intended to develop a new comparative information base for the public covering the fields of labor markets and labor law. It also conducted more specific studies related to various labor matters in North America (listed below) and provided support to a trilateral working group on rules of procedure for Evaluation Committees of Experts (ECEs).

    1. Reports and Publications

    Comparative Labor Market Study

    The study North American Labor Markets: A Comparative Profile provides a comprehensive comparative analysis of trends in the labor markets of the three countries of North America during 1984-1995. This study is the first of a biannual series. It was published in 1997 and includes numerous charts and tables as well as explanatory text.

    The report presents all major labor market statistics where reasonably comparable information exists for all three countries. Topics covered include employment, working time and nonstandard work, unemployment, unionization, earnings, productivity, income distribution and employment benefits. The report describes some of the important trends and major themes that have emerged in the three labor markets over the past decade.

    Comparative Labor Law Study

    In December 1996 the Secretariat published, in the Commission's three official languages, a "Preliminary Report to the Ministerial Council: Labor and Industrial Relations Law in Canada, the United States and Mexico."

    A comprehensive comparative labor law report is being prepared by the Secretariat and will be published in three volumes, beginning in early 1999. The purpose of the report is to provide an analysis of the key features of labor law in the three countries organized under the 11 NAALC Labor Principles. The report also describes governmental administrative machinery in each country, organized according to the NAALC's six obligations.

    Plant Closings and Labor Rights

    At the request of the Government of Mexico, Ministerial Consultations were undertaken with the United States on December 15, 1995, following the Mexican NAO report in the matter of Mexican NAO Submission 9501 (see above.) On February 13, 1996, the Council announced the results of the Ministerial Consultation, which were endorsed and joined by Canada. One decision was to direct the Secretariat to conduct "a study on the effects of the sudden closing of a plant on the principle of freedom of association and right of workers to organize in the three countries." NAALC Article 14(2) provides that the Secretariat shall prepare a study on any matter as the Council may request.

    The study describes how the labor laws of each country protect against the use of plant closures or threats of closure to prevent union organization; it then examines the experience with the administration of these laws over the past five to 10 year period. The study was published on June 9, 1997, under the title, Plant Closings and Labor Rights.

    Standard and Advanced Practices in the North American Apparel Industry

    The Secretariat has been preparing a study on production and employment practices in the North American apparel industry, which it will submit to the Council in 1998. This study was undertaken to identify and disseminate successful practices of firms, governments, unions and others in the industry to improve wages and working conditions while remaining competitive.

    Short Reports

    In order to analyze some of the topics covered by the labor market report in greater detail, the Secretariat has also undertaken short reports on specific labor market topics. A report on the employment of women in North America, to be published in late 1998, is the first such report. It is designed to analyze female employment in the three NAFTA countries and to outline the main characteristics of female labor in the three countries comprising the NAALC, while describing its evolution from 1984 to 1996.

    A reference manual under preparation covers the main income security programs provided under the laws of Canada, Mexico and the United States. Some of the substantive programs covered in this manual include employment insurance, workers' compensation, disability insurance, severance payments, family support programs, maternity and sick leave, and income support programs delivered through the tax system.

    Other Publications

    One of the primary functions of the Secretariat is to produce information that reaches a broad spectrum of the public interested in North American labor issues. Aside from the major studies, short reports and preliminary reports, the Secretariat's publications program for the first four years included the publication of four periodic bulletins, which provided information on research and activities sponsored by the Commission and the establishment of the Secretariat's World Wide Web site (www.naalc.org).

    2. Council Initiatives

    North American Seminar on Incomes and Productivity

    In February 1997, the Secretariat organized its first annual seminar focusing on incomes and productivity in North America. The second seminar was held in February 1998. The seminar is planned to be held on an annual basis and will focus on different perspectives on the central theme of incomes and productivity and the linkages between them within the labor markets of the NAFTA partners.

    The first seminar focused generally on two areas: a macroeconomic perspective on wages, productivity and competitiveness in North American labor markets; and a microeconomic perspective on the changing employment relationship in open economies. The 1998 seminar focused on a multisector analysis of earnings and productivity and a single-sector analysis of incomes and productivity in the auto industry in North America.

    Working Group on Workers' Compensation in North America

    At the request of administrators of several workers' compensation systems in North America, the Council decided on July 8, 1997, to establish a Working Group to consider the special challenges in administering workers' compensation programs for employees from one North American country working temporarily in another North American country. The Working Group consists of federal and state/provincial officials and is supported by the Secretariat.

     

  3. Part Four of the NAALC: Cooperative Consultations and Evaluations

    Public Communications

    The NAALC provides in Article 16 that, "each NAO shall provide for the submission and receipt of public communications on labor law matters arising in the territory of another Party." Each Party has in fact established its own rules and procedures for receiving and reviewing public communications.

    In general terms, the different national processes for reviewing public communications contain a number of common elements:

    • petitioners submit communications concerning labor matters occurring in the territory of another party to the National Administrative Office of their government;
    • the NAO determines the communication complies with its own requirements;
    • if accepted, the NAO initiates a review of the communication, normally including consultations with affected NAOs, as well as other forms of information gathering;
    • the NAO issues a public report, which may include a recommendation to its Minister of Labor regarding a request for Ministerial Consultations, as well as any other action to further the goals of the NAALC.
    There are, however, also significant variations in the procedures. The Mexican review process, for instance, must be carried out "within a reasonable period of time," while the U.S. and Canadian procedures specify fixed time frames (60 days to decide to accept a communication and 120 days to prepare a public report). There are also differences in how information is gathered. The Mexican process may involve "information sessions"; the Canadian process may involve a "public meeting or consultation." The U.S. process calls for a public hearing in every case "unless the Secretary determines that a hearing would not be a suitable method for carrying out the Office's [NAO's] responsibilities."

    Since the Agreement came into force, there have been 14 submissions received by the NAOs (as of August 21, 1998). Nine of these have been received by the U.S. NAO related to issues arising in Mexico. Four communications were received by the Mexican NAO and related to labor law issues in the United States. One public communication was received by the Canadian NAO related to issues arising in Mexico. The specific issues raised in the public communication received by Canada were the subject of a previous submission to the U.S. NAO.

    Article 22 of the NAALC allows any Party to request consultations with another Party at the ministerial level "regarding any matter within the scope of the Agreement." These consultations aim to resolve issues in a mutually beneficial manner in the cooperative spirit of the Agreement. As of June 1998, Article 22 was invoked on four occasions, three times by the United States and once by Mexico. Three of these cases involved freedom of association and/or the right to organize, and the other involved gender discrimination. On all four occasions, Canada endorsed the action plan agreed to at the Ministerial Consultations and participated in all resulting joint initiatives. Tables 3 and 4 provide a summary of communications received by the NAOs to date.

    Table 3

    SUMMARY OF PUBLIC COMMUNICATIONS UNDER ARTICLE 16

    (as of October 1998)

    Comm. Submitted
    to
    Submitter Issue/Principle Ministerial
    Consult.
    Outcome/
    Follow-up
    Activities
    940001 U.S. NAO International Brotherhood of Teamsters (IBT) Freedom of Association/Right to Organize No Seminar
    940002 U.S. NAO United Electrical, Radio and Machine Workers of America (UE) Freedom of Association/Right to Organize No Seminar
    940003 U.S. NAO International Labor Rights Fund; American Friends Service Committee; Association of Democratic Lawyers Freedom of Association/Right to Organize Yes 3 conferences on union registration; study; officials met with private parties involved; study by Mexican experts
    940004 U.S. NAO United Electrical, Radio and Machine Workers of America (UE) Freedom of Association/Right to Organize No Withdrawn
    9501 Mexican NAO Telephone Workers Union Freedom of Association/Right to Organize Yes Public forum and Secretariat special study; information by U.S. Labor Secretary on the case before domestic authorities
    9601 U.S. NAO International Labor Rights Fund; Human Rights Watch/America; National Association of Democratic Lawyers Freedom of Association/Right to Organize Yes Conference on international treaties and labor law
    9602 U.S. NAO Communications Workers of America (CWA) Freedom of Association/Right to Organize No Withdrawn
    9701 U.S. NAO International Labor Rights Fund; Human Rights Watch/America; National Association of Democratic Lawyers Employment Discrimination Yes Pending
    9702 U.S. NAO National Association of Democratic Lawyers; Support Committee for Maquiladora; International Labor Rights Fund; Union of Metal, Steel, Iron and Allied Workers (STIMAHCS) Freedom of Association/Right to Organize Occupational Safety later added Yes Pending
    9703 U.S. NAO United Steelworkers of America, AFL-CIO/CLC; United Electrical, Radio and Machine Workers of America (UE); International Brotherhood of Teamsters Freedom of Association/Right to Organize, Right to Bargain Collectively, and Prevention of Occupational Injuries and Illnesses Yes Pending
    9801 Mexican NAO Oil, Chemical and Atomic Workers International Local 1-675, OCAW; Sindicato de Trabajadores de Industria y Comercio "6 de octubre"; Unión de Defensa Laboral Comunitaria; Comité de Apoyo para Los Trabajadores de las Maquiladoras Freedom of Association/Right to Organize, Right to Bargain Collectively, Minimum Employment Standards and Prevention of Occupational Injuries and Illnesses None announced as of 8/98 Pending
    98-1 Canadian NAO United Steelworkers of America, (Canadian Office), and 11 other unions and 31 concerned organizations Freedom of Association/Right to Organize, Prevention of Occupational Injuries and Illness None announced as of 8/98 Pending
    9802 Mexican NAO Frente Auténtico de Trabajo (FAT); Unión Nacional de Trabajadores (UNT); STIMAHCS Freedom of Association/Right to Organize, Right to Bargain Collectively, Minimum Employment Standards, Prevention of Occupational Illness and Injuries, Protection of Migrant Workers, Elimination of Employment Discrimination None announced as of 8/98 Pending
    9803 Mexican NAO Confederation of Mexican Workers (CTM) Protection of Migrant Workers, Minimum Employment Standards, Elimination of Employment Discrimination, Prevention of Occupational Injuries and Illnesses, Compensation in Cases of Occupational Injuries and Illnesses    
    9801 U.S. NAO Association of Flight Attendants Right to Strike No Not accepted for review
    9804 Mexican NAO Yale University School of Law; Workers Rights Project Minimum Employment Standards and Protection of Migrant Workers None announced Pending

    Table 4

    PUBLIC COMMUNICATIONS OVERVIEW

    (as of October 1998)

    Year Number of Public Communications NAALC Principle Cited Ministerial Consultations
    1994 4 1, 2 1
    1995 1 1, 2 1
    1996 2 1, 2 1
    1997 3 1, 2, 6, 7, 9 3
    1998 5 1, 3, 6, 7, 9, 10, 11 0
    Total 15 8 6


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