The North American Agreement on Labor Cooperation was developed and adopted to support the North American Free Trade Agreement (NAFTA). NAFTA was instituted to increase opportunities for trade among the member countries. However, there was a need to address the issue of living standards among the partners. This led to the signing of the NAALC, which sought to ensure that benefits for all partners were above board. The agreement provides a framework aimed at ensuring that working conditions and living standards were improved among the member countries in line with growing economic ties and trade opportunities.
The agreement works through mutual cooperation by the different partners. Additionally, it provides the basis for labor standards and a framework for enforcing these standards by the different parties. This works to ensure that working conditions are standardized preventing businesses from benefiting at the expense of the workers/people.
Some of the protections established by the NAALC according to the U.S. Department of Labor include;
freedom of association and protection of the right to organize;
the right to bargain collectively;
the right to strike;
prohibition of forced labor;
labor protections for children and young persons;
minimum employment standards, such as minimum wages and overtime pay, covering wage earners, including those not covered by collective agreements;
elimination of employment discrimination on the basis of race, religion, age, sex, or other grounds as determined by each country's domestic laws;
equal pay for men and women;
prevention of occupational injuries and illnesses;
compensation in cases of occupational injuries and illnesses; and
protection of migrant workers.
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