The North American Agreement on Labor Cooperation: DESIGNED TO FAIL?

Abstract

As was clear, even before the disturbances that erupted at the 1999 World Trade Or ganization talks in Seattle, economic integration projects can no longer be legitimized unless they have a “social” dimension. But it’s equally clear that there is no consensus on how to bring social regulation to the global economy. The North American Agreement on Labor Cooperation (NAALC), one of two side agreements to the North American Free Trade Agreement (NAFTA), is an instructive experiment with important implications for the future of international labor regulation. It is also, alas, a system that is running the risk of failure, not only because of its design but also because of the restrictive and defensive way it is used by the organizations involved.The NAALC, which went into effect on January 1, 1994, commits the United States, Canada, and Mexico to implement, enforce, and improve labor principles through national legislation and institutions. Its objectives are to be furthered by intergovernmental cooperation and by a procedure to resolve complaints. This procedure is based on a monitoring system, with a series of steps available for unsettled disputes (in certain cases these steps can lead to arbitration and the imposition of fines). The agreement is implemented through administrative offices, located in the labor department of each country, and through the North American Commission for Labor Cooperation and its international secretariat.Though international cooperation and comparative research form an important part of the NAALC, handling complaints is at the core of the activities that have attracted the most attention. More than two dozen complaints have been submitted, and they show that inadequate enforcement of labor principles and national labor law is by no means a problem confined to Mexico: eight complaints have been lodged against the United States and two against Canada. Infringements of the right to freedom of association were initially the main focus. But charges of discrimination and of occupational health and safety violations are gaining increasing attention. Complaints usually end with an action program agreed on bilaterally between labor departments.