Unit 6 Peer Response Post 2

9.  Explain the purpose of NAFTA’s Labor Side Agreement. (ULO 1)

NAFTA’s Labor Side Agreement is known as the North American Agreement on Labor Cooperation (NAALC) constructed to address labor’s fears of low Mexican wages possibly undercutting U.S. competitiveness, downward pressure on U.S. wages and working conditions, and cause widespread plant closings.  This agreement is also designed to prevent social dumping and contains a separate side agreement to protect environment. The purpose was to pressure all three member states to uphold their own laws in these areas. Mexico’s inclusion in NAFTA was the original rationale, but the requirements applied to all three countries (United States, Mexico, and Canada). Non-compliance was not to be tolerated.  

“Annex 1: Labor Principles"

The following are guiding principles that the Parties are committed to promote, subject to each Party’s domestic law, but do not establish common minimum standards for their domestic law. They indicate broad areas of concern where the Parties have developed, each in its own way, laws, regulations, procedures, and practices that protect the rights and interests of their respective workforce.  There are eleven of them in total:

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

As of mid-2016, thirty-nine NAO (national administrative office) submissions have been filed alleging a violation of domestic labor law.  Most complaints have named multinational companies as the violators, but some have alleged violations by one of the three governments as a public sector employer.  The United States NAO has received the most complaints (23), followed by Mexico (10) and Canada (6).

References:

Budd, J.W. (2018). Labor Relations: Striking a Balance. 5th ed. New York: Mc-Graw-Hill Education

https://www.nelp.org/wp-content/uploads/2015/03/Background-on-Complaint-under-North-American-Agreement-on-Labor-Cooperation.pdf