Bill C-377 (Historical)

An Act to amend the Income Tax Act (requirements for labour organizations)

This enactment amends the Income Tax Act to require that labour organizations provide financial information to the Minister for public disclosure.

Canada Labour Code

[Kerry Diotte, Conservative, Edmonton Griesbach, AB]

Madam Speaker, there has been a lot of talk about support for unions and so forth. I grew up in a union town, Sault Ste. Marie, Ontario. My dad was a union executive, and I was very proud of him, and I was a union member myself. I find it rather offensive that just because I am a Conservative and particularly a fiscal Conservative that somehow I am anti-union or we are all anti-union. We have to realize that is just a red herring.

I am pleased to rise in this House today to stand up for good hard-working Canadians, including union members, and speak against Bill C-4. I believe, as do my Conservative colleagues, that transparency and accountability are the pillars of our policies. In fact, it was our former Conservative government that created the Federal Accountability Act, and we did not stop there. As well, we created and passed legislation to ensure unions were accountable to their members and to all Canadians. Bill C-4 would threaten accountability and transparency in labour negotiations and labour relations. All Canadians should know where their money goes and be entitled to accountability.

The member for Kildonan—St. Paul told the House the legislation reflects the Liberal government's “commitment to restore a fair and balanced approach to labour relations in this country”. However, in fact this bill would remove the balance struck between big union bosses and Canadians. Bill C-4 perhaps would better reflect the uncomfortably close relationship between the Liberal government and union bosses.

I would like to review the content of both bills that would be repealed by Bill C-4.

We are looking at Bill C-525. Bill C-525 addressed the concerns the union members themselves had with the previous card check system. The card check system allows for a workplace to be unionized without allowing all employees to express their opinion. In fact, the unionization of a workplace could occur without a significant proportion of the bargaining unit having been made aware. That is just wrong. In the current system, if a certification drive were to be conducted for a bargaining unit of 100 employers and the union were able to obtain the signatures of 51 members, the bargaining unit would be certified. There is not a requirement for the remaining 49% of members to be notified that a unionization drive is even taking place or to be given the opportunity to express their opinions or opposition. That is just wrong. The card check system is susceptible to abuse wherein workers could be pressured by unions and/or their their colleagues into signing a union card. A secret ballot vote allows employees to provide an honest and accurate indication of support, free from the threat of pressure or intimidation from both unions and employers.

Now let us look at Bill C-377. It also took steps to improve transparency with union funds. Previously, labour organizations that enjoyed substantial public benefits were not required to publicly disclose their financial activity. Labour organizations operate tax free, and their members receive full income tax deductibility for their dues and payments, and receive their strike pay tax free. Dues deductibility alone costs the federal treasury in the range of half a billion dollars a year. That is a staggering amount of money. Financial transparency occurs in institutions receiving substantial public benefit. This is not a new concept. Bill C-377 addressed this gap in financial accountability, extending transparency to unions. In short, the bill required that every labour organization in Canada file a standard set of financials each year, which are posted on the CRA website, much like Canadian charities already do. It was not radical legislation.

It is a fact. Canadians, union members, stakeholders, and at least members on this side of the House, support transparency and accountability.

Let me share some of the widespread support that these bills have received.

With regard to Bill C-525, in a news release from April 2014, the Canadian Federation of Independent Business welcomed its passage, stating, “secret ballot votes are a cornerstone of our democracy..”. I think virtually anybody in Canada has to agree with that statement.

A poll commissioned by the Canadian LabourWatch Association found that 86% of unionized or formerly unionized workers supported secret ballot voting for union accreditation. Canada is the only country in the industrialized world that forces union dues upon workers.

Further, in his testimony before the Standing Senate Committee on Legal and Constitutional Affairs, John Mortimer, president of the Canadian LabourWatch Association, expressed support for Bill C-525, making the following points:

Since 1977, six provinces, including Nova Scotia, British Columbia, Alberta, Ontario, Saskatchewan, Newfoundland and Labrador, have established laws guaranteeing secret ballots for union certification. The secret ballot is statutorily guaranteed for the majority of Canadians. This type of secret ballot has not caused unions to disappear, not even in Nova Scotia, where it has been in place since 1977. The rate of new unionizations is lower than before and reflects what informed employees are making as a private choice. That is what they want.

Sometimes employees are victims of inappropriate tactics and given wrong information to get them to sign a membership card. That is just wrong. For example, we know that some employees sign their card without knowing the true result, which is the unionization of their workplace. With regard to timelines for holding secret ballots, seven Canadian jurisdictions do not set timelines for votes.

Now, Bill C-377 also received significant support. I will highlight a few of them.

During his testimony before the Standing Senate Committee on Legal and Constitutional Affairs, in 2015, Aaron Wudrick, federal director, indicated that the Canadian Taxpayers Federation supported the bill for the following reasons. He said that given that unions enjoy a wide range of tax benefits and special tax treatment, it would be appropriate to require them to disclose their financial information, as is the case with charities.

It is a no-brainer. Transparency is very important because it acts as a deterrent and allows a broader class of people to uncover any transgressions.

In testimony before the House of Commons Standing Committee on Finance and the Standing Senate Committee on Banking, Trade and Commerce, Terrance Oakey, president of Merit Canada, was in favour of Bill C-377. He said that the bill would enable Canada to catch up with other advanced economies when it comes to financial disclosure. That has to be a good thing.

The bill would not change the mandatory payment of dues by unionized workers, nor the manner in which that money is used. The bill only deals with the transparency requirements that should be imposed on labour organizations. Workers paying dues deserve to know how that money will be spent—it is the least that should happen—and Canadians have a right to know how their taxes are being used to influence public policy.

A 2011 poll by Nanos found that 86% of unionized Canadians supported greater union transparency. That is an opinion shared by 83% of the general public.

With this support, why does the Liberal government want to repeal these important pieces of legislation? I must ask the government where the fairness is for hard-working Canadians. It is just wrong-headed, and we cannot stand for this.

[Tracey Ramsey, NDP, Essex, ON]

Madam Speaker, it was estimated that Bill C-377 would cost the Canada Revenue Agency approximately $21 million to establish the electronic database over the first two years and approximately $2.1 million per year for subsequent years. Our cost estimates were much higher on the cost of implementing these new requirements, not to mention the astronomical number of hours that would be wasted by each labour organization in order to comply with these regulations.

The member mentioned that she was a former union member. We all know that money from many labour organizations goes into our communities to fund wonderful things that fill in the gaps where money does not exist from the government or other levels. Could the member please highlight some of the differences that union contributions have made in her community?

[Dan Vandal, Liberal, Saint Boniface—Saint Vital, MB]

Madam Speaker, I congratulate the hon. member on her very intelligent and passionate speech.

It is obvious to me that Bill C-377 and Bill C-525 were direct attacks on unions, in the same way that the former government liked to attack environmental groups and indigenous peoples.

Where does the hon. member think this philosophy of always attacking and dividing people came from? What does she think about that?

[Monique Pauzé, Bloc, Repentigny, QC]

Madam Speaker, this House is quite different than it was in the previous Parliament. For nearly 10 years, a bitter tone pervaded everything that had to do with social justice. Everyone could see it and read it. In contrast, this government's gesture, its repealing of the legislation that came out of Bill C-377 and Bill C-525, is a sign of its openness towards the driving forces of Quebec's economy.

This is what was missing during the previous government's reign. It did not really respect those who are working hard to build our economy, namely, the workers.

We wanted to believe that the vitriolic rhetoric of the Tea Party in the United States was centred around what is known as the deep south and the Republican Party. Unfortunately, the Conservatives proved to us that they were but a northern branch of the Republican Party of the Bushes, Trump, Romney, and other right-wing politicians.

Those are the people my colleague from Louis-Saint-Laurent is defending so blithely. I remember the day when he brandished his membership card from the old Progressive Conservative Party of Canada in front of the media. He did so proudly, but I think he was mistaken. He did not join the conservative party of former prime minister Brian Mulroney. He joined a party that wears a blue mask to hide its true roots, those of the defunct Canadian Alliance, a party that respects only the rich and powerful of this world and that despises the less fortunate and the working men and women of this country.

Those two bills were false fronts for hatred of social justice, for a desire to reduce workers to tools of production rather than regard them as human beings worthy of respect, for a neo-liberal ideology with the singular political goal of destroying those who would make our society more egalitarian.

Even Senator Segal, a Conservative, condemned those bills. All through those years of anti-union and anti-progressive governance, we saw special bills to force striking workers back to work, military policies that supplanted international politics, and economic policies that gave more money to the rich and took it away from our society's middle class and the poor.

Even though they are no longer in power, the Conservatives continue to cause damage that we will no longer have to bear once our nation becomes independent and free from the threat of their return to power. When they introduced their bills that were harmful to the common good, we listened to them speak about their good intentions to defend workers from the evil unions that represent them.

These same members defended policies that would reduce wages. These same members who claim to be the strongest supporters of pay equity also support policies on temporary workers, economic treaties with countries that support the exploitation of workers, policies on military contracts with countries that have no respect for human rights, especially the rights of women, and economic policies against labour-sponsored funds such as the Fonds de solidarité FTQ.

The time had come to move on to other things and have substantive debates in the House of Commons. I am proud to be a union activist, not because my approach is based on ideology, but because I believe in having a level playing field in our society. It would be a lie to say that we currently have a level playing field. I know that my right-wing colleagues will certainly disagree. That is to be expected.

When we turn ideology and rhetoric into the dogma of governance, we end up forgetting the facts, evidence, and scientific data that should be the driving forces of our actions in government. It is not surprising that the same government that passed its ideological bills also muzzled federal government scientists at the same time. When the data contradict our beliefs, then it is best to prevent people from reading them, right?

I am a unionist because unions are useful in our society. That is something that even old-school Conservatives acknowledge. Unions here are not ideological, they are pragmatic. They adopt constructive approaches. They are able to partner with businesses and employers for the economy and for the common good. Attacking and berating them, which became commonplace under the former government, was mean-spirited and vicious. The previous government was part of the global phenomenon of violating union rights. The rich and powerful of this world want to squeeze the middle class by taking away some of the leverage it needs for success.

It was nothing short of a concerted strategy by the former prime minister and his friends in the financial community to remove workers' last defences. Without our unions, it would certainly be easier for the government to lower the minimum wage, do away with our public heath care system, and butcher the welfare state that our parents and unions fought so hard to build in the 1960s and 1970s.

Regardless of what the big guns on the right, such as the Duhaimes and the Donald Trumps of this world, may say, Quebeckers and Canadians agreed on some things. The economic ultra-liberalism that contributed to the worldwide poverty of the 1930s was not the way to go in the 21st century.

Once again, I would like to commend the government on the gesture of openness it made by introducing Bill C-4. We are far from the promised land. There are still many inequalities. However, this is a step in the right direction, and it at least shows us the direction that we should take. We have not finished talking about inequalities in the House. There are still far too many.

For nearly 40 years now, workers' purchasing power has been decreasing, while executives' salaries have been increasing. The grand scheme to tear down the welfare state across the western world has been under way for too long.

Whether we are talking about Reagan, Thatcher, whom my colleague from Outremont so admired, Bush, or our former Canadian prime minister, too many politicians deliberately lie to voters. They claim to want what is good for them, yet all the while adopt policies that favour the rich and powerful. As the saying goes, “I want what is good for you and I want your goods as well.”

The time has come to reverse the trend. The time has come to think about the group instead of the individual, and that is why we have unions. In unity there is strength, as we know, and unions help bring strength to workers around the world.

Long live Michel Chartrand, Thérèse Casgrain, Marcel Pépin, Lorraine Pagé, and my friend Réjean Parent. Long live all those who fight for social justice.

[Rodger Cuzner, Liberal, Parliamentary Secretary to the Minister of Employment]

Mr. Speaker, I welcome my colleague from the NDP to the chamber. I am sure, as he starts his career here in the House of Commons, there will be many issues on which we will disagree, but certainly on this one we are very much like-minded.

As we went through the study on Bill C-377, there were a number of comments made regarding the legislation, saying this was the same legislation, for the most part, as George Bush brought in as Republican legislation in the United States. We were able to witness one of the standard claims that was filed in the United States, and it was around 745 pages. It was a pretty impressive document.

The charity in Canada that records the highest amount of revenue is a hospital in Toronto. When it files, it has one of the most comprehensive, detailed filings for a charity in the country. It is 24 pages. It is pretty impressive when they are stacked up beside each other. The Conservatives contended that this was just about openness and clarity, and that we ask charities to do that. Does he see the difference between what is asked of charities and what was being asked of organized labour? Does he see that there was something else behind the motivation, other than openness and transparency?

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Mr. Speaker, I am proud to stand in this House to speak to Bill C-4, an act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and the Income Tax Act.

This bill would finally repeal the devastating attack that the former Conservative government launched against working people across this country. The two bills that would be repealed were known in the 41st Parliament as Bill C-377 and Bill C-525. These bills were not only mean-spirited attacks on unions, but they were, as Jack Layton said in his last speech to the House, part of a larger agenda by a government that preyed on the concept of dividing Canadians one from the other.

New Democrats fought relentlessly against these Conservative anti-union bills, and we certainly welcome the changes of the new Liberal government. I remember when Bill C-377 was pushed through Parliament against the tide of not just labour organizations but also constitutional and privacy experts. There was opposition from the insurance and mutual fund industry, the Privacy Commissioner of Canada, even the Canadian Bar Association, and the National Hockey League Players' Association.

To go on about the constitutionality of the bill, the Conservatives were never good at working within our Constitution. They constantly went head-to-head with the judiciary in this country, losing big battles whenever they put Conservative legislation before Canadian constitutional values. They lost on mandatory minimums, time-served sentencing, and even tried to break a rule to allow an ineligible judge to sit on the Supreme Court of Canada.

A few years ago a whistle-blower from the Department of Justice brought to light the fact that the government was not fully vetting its legislation to see if it was constitutional or not. When Bill C-377 was tabled, it came as no surprise that the Privacy Commissioner of Canada stated that the bill would ultimately be defeated by the courts, because it went against the Canadian Charter of Rights and Freedoms. This bill would violate freedom of association and the private lives of those workers who were unionized.

Now I will move on to the details of Bill C-377. It was a law that was discriminatory and imposed onerous and detailed reporting requirements on labour organizations. It was designed as a method to crush union finances and bury any action under bureaucratic red tape. Unions already do fully transparent reporting to their membership, as do many organizations and other associations that this bill did not cover.

Labour organizations were suddenly going to be subject to public, outside of their membership, disclosure to everyone. No other association would be forced to do anything similar. Why were the unions the only ones targeted? What about the clubs, the think tanks, the religious organizations, and even the council of chief executives? They were all left out.

Law societies and the Canadian Medical Association were also not subject to this law. It was a bill that was designed as a clear attack on workers' rights.

Bill C-377 was not only an ill-advised method of dividing Canadians, it was also extremely expensive. The parliamentary budget officer, a position created by the Conservative government, stated that it would cost the Canada Revenue Agency approximately $21 million to establish the electronic database for the first two years, and approximately $2.1 million per year for subsequent years.

The bill was so contentious that even Conservative Party senators fought against it. I should note the great Conservative Hugh Segal among other things mentioned that it would violate the privacy of millions, would tilt the advantage towards employers during negotiations, and was basically a declaration of war against workers. He felt it was unconstitutional and discriminatory, and was not even a dignified way to govern this country.

Repealing this bill would save millions of dollars annually, both for the government and for labour organizations. Bill C-525 was a law designed to harm and diminish unions by making it much more difficult for workers to collectively form a union, and making it much easier for a union to be decertified.

The government pushed hard for these private members' bills to be passed back in the day. It marked a trend by the Conservatives to take contentious attacks and place them in private members' bills so they were subject to less scrutiny and debate than full government legislation would have been.

Many stakeholders who were directly affected by the legislation have also applauded the government for its plan to repeal the two private members' bills.

The president of the Canadian Labour Congress has been clear that these pieces of legislation were nothing more than an attempt to undermine a union's ability to do important work like protecting jobs, promoting health and safety in the workplace, and advocating on behalf of all Canadian workers.

In their attempt to divide Canadians, the Conservatives have always liked to attack unionized workers, as though they are the privileged of Canadian society who do nothing to help the non-unionized. The truth of course is very different. Workers and unions spend their paycheques in local communities like mine in Cowichan—Malahat—Langford. Their incomes support local businesses, and they bolster our tax base, which adds to everyone's quality of life.

The benefits that are often enjoyed by unionized workers attract and support crucial care infrastructure, such as dentists, therapists, opticians, and family lawyers, to help build vibrant communities, not to mention that the money that unionized workers contribute to their pension plan comes back to them so that they can spend it in the community. It also means that fewer workers need to rely on family or social programs to get by.

When unions have the power to stand up for fairness, they raise the bar for everyone. We can thank the labour movement for its victories in securing parental leave, workplace safety standards, minimum wages, vacation pay, and protection from discrimination and harassment for all workers in this country. It is clear that these laws had to go, and we applaud the Liberals for being on the correct side of this fight and for quickly moving to repeal this legislation.

We also know that the struggle for fair working conditions is far from over. New Democrats will continue to push the government to restore and enhance collective bargaining rights, as well as fairer working conditions for all Canadians. The fight continues as our very own NDP member for Jonquière is proposing anti-scab legislation to ensure fairness and balance in labour negotiations. The prohibition against using replacement workers would protect the interests of working Canadians and their families against the might of large, powerful, and global employers.

The New Democratic Party has deep roots in the lives of working people. After all, our party was created out of the Co-operative Commonwealth Federation and the Canadian Labour Congress to be the voice of the regular working family. We follow that tradition closely, as we are proud of being the only unionized political party, where our employees have a say in their workplace.

The Liberals should be applauded for working in Parliament to give collective bargaining rights to the Royal Canadian Mounted Police. We trust that they will continue this trend and work with their own employees to grant them collective bargaining rights as well.

Workers in my community have brought to my attention that there are more and more part-time and contractual employees in the riding, and more needs to be done to protect them. The last review of the Canada Labour Code was done 10 years ago, in 2006. There were recommendations that came out of that review, which would specifically help precarious and part-time workers in my riding, but they were never fully implemented. New Democrats will be working hard to push the Liberals in acting on these recommendations. Part-time and contractual employees deserve the same fairness that we demand for all workers across this country.

The Canada Labour Code needs to be updated and modernized. There are sections in the code that are at least 60 years out of date. Repealing Bill C-377 and Bill C-525 are important first steps. However, it is important that we do not sit back and congratulate ourselves, as sections of our Canada Labour Code dealing with harassment, hours of work, overtime pay, and vacation entitlements need major updates.

When Tommy Douglas was premier of Saskatchewan, he knew that securing basic workers' rights was key to a just and prosperous society. He was able to get ideas from working people and implement them for the benefit of all. Tommy passed legislation establishing a 40-hour work week, paid vacations, and collective bargaining rights for all workers. Conservatives have tried to turn back the clock and strip workers of the vested rights they fought so hard to achieve. We now have much to do to enshrine protections for working families across this country.

Working people in my riding know that repealing Bill C-377 and Bill C-525 are important first steps. New Democrats will be there to hold the government's feet to the fire to ensure that we continue bettering the lives of workers from coast to coast to coast.

[Ramesh Sangha, Liberal, Brampton Centre, ON]

Mr. Speaker, again, repealing Bill C-377 and Bill C-525 is a priority of our mandate. These bills need to be rescinded. Bill C-4 is required to be passed. This will put collective bargaining on the table in a better way, and will be a benefit to the employees.

[Ramesh Sangha, Liberal, Brampton Centre, ON]

Mr. Speaker, if Bill C-4 is passed, it will restore total fairness and balance to the Canadian labour relations system.

The repealing of Bill C-377 and Bill C-525 is required.

[Ramesh Sangha, Liberal, Brampton Centre, ON]

Mr. Speaker, it is certainly not often that we, in the House of Commons, are called upon to repeal legislation passed by the previous government. However, in this case it is absolutely necessary, and I encourage all members of the House to support Bill C-4.

The reason is very clear. Bill C-377 and Bill C-525 upset the balance in labour relations in Canada, giving employers a distinct advantage over unions. It is unfair, unbalanced and un-Canadian.

For example, let us take a look at how Bill C-377 impacts the collective bargaining process. On one side, we have union representatives trying to negotiate a wage increase, better working conditions or more flexible work hours and so on. On the other side, we have the employer who wants to operate as efficiently as possible in order to maximize profits.

If there is a deadlock in the bargaining, each party has their own tools to break the deadlock. Employers can lock out employees. Similarly, unions can go on strike. It is very clear that they are seen at the collective bargaining table in a truthful manner to resolve the matter.

Bill C-377 amended the Income Tax Act to require labour organizations and labour trusts, including unions, to file detailed financial and other information returns with the Canada Revenue Agency.

That information, such as details on their assets, their liabilities, their salaries and so on is then to be made public on the CRA's website. This means that unions must reveal how much money they have in their strike fund for a possible work stoppage. That means employers can find out how long a union could stay out if it came to a strike.

Under Bill C-377, the collective bargaining system is no longer a level playing field. It gives the employers' side a distinct advantage. By knowing that the union has only a certain amount of funds for a strike or lock-out, they know exactly how far the union can be pushed to accept less in order to avoid either of those eventualities. Does anybody really think that is fair? I do not think it is, and neither does our government.

Let us remember that collective bargaining went well for decades under the previous system.

Bill C-377 also contains other provisions that are equally unacceptable. For example, unions, but not employers, have to report salaries paid to their officers and directors. Unions, but not employers, have to reports time spent by some personnel on political lobbying and non-union related activities.

In addition, the bill duplicates existing requirements under the Canadian Labour Code that requires the unions to provide their members with reports on their financials, free of charge and on demand. Similar requirements are also already in place under many provincial labour laws.

The second bill to be repealed, Bill C-525, has been described by my colleague, the member for Cape Breton—Canso, as a solution looking for a problem. That is a very apt description.

First, what the bill changes is the way unions can become certified or decertified. Previously, unions getting themselves certified was not a big problem. Even if 35% of employees signed cards, they had to present this to the Canada Industrial Relations Board to be registered as the bargaining agent.

Unfortunately, we have seen examples of employers that will resort to any measure to deter their employees from unionizing.

What Bill C-525 does in effect is allows employers to know exactly when a union might be trying to organize a workplace union. Even though most employers act ethically to prevent unions from organizing, the point is that employers now have a powerful tool they did not have before to slow down or stop the union certification process.

Prior Bill C-525, when federally regulated private sector workers wanted to organize in a particular workplace, if a majority of the employees signed union cards, they could go to the Canada Industrial Relations Board, show it the cards and the CIRB could certify them as the bargaining agent. This was the system from decades onwards. If less than a majority of employees signed union cards, but at least 35% did, certification could be done.

More generally is the ability to unfairly influence the collective bargaining process.

Canada needs a collective bargaining system, a system that is fair and balanced, a system in which both unions and employers come to the table in good faith to bargain on an equal level.

Repealing the changes made by these two bills would help correct the current imbalance. I hope all my colleagues in the House will give this measure their support.

[Mark Holland, Liberal, Parliamentary Secretary to the Minister of Democratic Institutions]

Mr. Speaker, it is a pleasure to rise to speak to the bill and talk about the restoration of a fair and balanced relationship that needs to exist in a regulatory framework for unions to ensure that workers are provided with adequate protection, and that we acknowledge that the disclosures already in place provide many of the things that the hon. members opposite talked about.

The reality is that the Canada Labour Code already provides for such disclosure, and that under Bill C-377 we are seeing a lot more red tape and are placing unions in a precarious situation of being very disadvantaged through in collective bargaining process. We can see its negatives, but we have not seen any of the positives.

It is no coincidence that the changes in Bill C-4 have been brought forward so early, as they are a recognition of this government's commitment to restoring that balance and fairness that the Prime Minister promised in the last election campaign. I would remind members that the Prime Minister had the opportunity to speak at length about the importance of restoring that balance and it became a very important plank in the last election. Certainly we heard it reiterated in the mandate letter given to the minister.

While I have a great many concerns about Bill C-377 that was adopted in the previous Parliament and which this bill would repeal, I want to focus the preponderance of my comments today on Bill C-525 and the legislative amendments proposed in that bill. Bill C-525 changed union certification and decertification processes under three federal labour relations statutes: the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, and the Public Service Labour Relations Act.

Prior to the amendments being enacted through Bill C-525, federally regulated unions could use what was called a card check system for certification. If a union demonstrated that a majority of workers had signed union cards, the union could be certified as the bargaining agent for those workers. A vote was only required if less than a majority signed, but enough to indicate a strong interest, for example, 35% under the Canada Labour Code.

Bill C-525 changed that to require that unions show at least 40% membership support before being able to hold a secret vote, and required a vote even when more than 50% of workers had signed union membership cards. It made it easier for unions to be decertified by lowering the threshold to trigger a decertification vote to 40%, compared to the majority support that was previously required. Essentially, Bill C-525 makes it more difficult for Canadian workers to unionize. That is not good for our economy, nor is it good for Canadians.

Unions help address inequality by helping to ensure there are fair wages. They help protect workers' safety and prevent discrimination in the workplace. They also help employers because a fair workplace is a more productive workplace, and a more productive workplace helps to grow our economy and strengthen our middle class.

What Bill C-525 presented was essentially a solution in search of a problem. There were no great rallies on Parliament Hill or even in any boardrooms demanding that we change a union certification system that had worked successfully for many, many years. The card check system, whereby a union is certified by demonstrating majority support for signed union cards, has been used successfully for many years in the federal jurisdiction and in several provinces. A number of unions like Unifor and the Air Line Pilots Association argued that it is fast and efficient and much more likely to be free of employer interference than the mandatory secret ballot system brought in under Bill C-525, which we seek to repeal.

The card check system is not undemocratic. It requires majority support through signed cards, and the Canadian Industrial Relations Board has strong measures in place to ensure that this process is fair. It should also be noted that representatives from both sides of the bargaining table were highly critical of how the previous government brought in these changes. Both bills were brought in as private members' bills without consultation with either employers, unions, or other levels of government. Many argued that it set a very dangerous precedent for the future of labour reform. They are right. That precedent must be expunged. We believe that fair and balanced labour policies developed through real and meaningful consultations with unions, employers, stakeholders, the provinces and territories, and the Canadian public are essential for harmonious labour relations.

Bill C-377 also presents problems that could be averted with proper consultation. Members have heard my colleagues talk about this in great detail, and I alluded to it earlier in my comments.

Among other things, it has the potential to seriously disrupt the collective bargaining process. For example, detailed information about unions, including information on union strike funds, will be available to employers. It seems to me like a blatant attempt to make things harder for unions.

It is essential that we have a system that is both fair and balanced, that the regulations we have in place ensure there is proper disclosure and rules in our labour negotiation process, but that we allow unions to be strong to protect the rights of workers, to ensure that our economy can grow and be productive, and that employers are treated fairly.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I would like to congratulate my colleague on an excellent speech, especially how he had his facts straight.

The Liberal government likes to pretend that it is fact- and evidence-based in everything it does. We heard today that in multiple polls, more than 83% of union workers were in favour of Bill C-377 and Bill C-525. Another fact is that without Bill C-377, there would be no financial transparency to the taxpayer for the half a billion dollars in tax credits from union dues.

I am interested in my colleague's opinion. Does he think that Bill C-4 is a fact- and evidence-based approach?

[Alain Rayes, Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, like my Conservative colleagues, I rise in the House today to voice my opposition to Bill C-4, an act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and the Income Tax Act.

The point of my speech is quite simple: I want to show Canadians and all the hard workers in my riding that the Liberal government's measures are not in the public's interest.

The Liberal government is working instead for special interest groups of which union bosses are members. Just two weeks ago, we learned that union leaders and the Liberal team made arrangements during the last election campaign. Today, in reading Bill C-4, I can see that the Liberals and union leaders are working hand in hand without any regard for the interests of workers or the general public. I must deplore this in the strongest possible terms.

First, by passing Bill C-4, the Liberal government will abolish two flagship pieces of legislation that the Conservatives put in place to protect workers and ensure union transparency. Bill C-377 provided for increased accountability on the part of union leaders by requiring unions to disclose any expenditures over $5,000 and any salaries over $100,000.

Bill C-525 required that a secret ballot vote be held to set up or do away with company unions. These provisions would have put an end to the intimidation that too often occurs during the union certification or decertification process. When employees were called upon to vote for or against the unionization of their workplace, this bill would have allowed them to do so in an informed manner via secret ballot, as is already the case in the provincial legislatures of British Columbia, Alberta, Saskatchewan, Ontario, and Nova Scotia.

Why do the Liberals want to do away with those provisions? Is it not legitimate for the unionization process to be transparent? Simply put, what seems to be common sense for Canadians is not for the Liberals. The fact of the matter is that it only took them a few weeks to forget their promise to be a transparent government.

Second, the Conservatives were not simply advocating for union transparency because it is a fundamental value. We were also advocating for it on economic principle. Every year, deductible union dues cost the federal government and Canadians some $500 million. A responsible government has a legitimate reason to demand accountability for these tax advantages.

A number of other countries, including the United States, the United Kingdom, Australia, Germany, and even France, have long required labour organizations to disclose their financial statements.

Third, because I have a very hard time understanding the government's position on transparency, I wondered whether my Conservative colleagues and I are the only ones who are concerned about these issues. The answer is no. I was pleased to come across a Leger survey from 2013, which indicated that 83% of 1,400 respondents said that they supported a bill like the one the Conservatives passed.

More interestingly, 84% of workers who contribute to a union said that they wanted such a bill to be passed, which is similar to the percentage of Canadians who wanted such a bill to be passed. These percentages therefore confirm the public's position on this issue.

During the proceedings of the House of Commons Standing Committee on Finance, there were many different kinds of groups that supported the Conservative bill.

Among them were the Canadian Taxpayers Federation; the Canadian Federation of Independent Business; LabourWatch; the Conseil du patronat du Québec; Merit Canada; the Montreal Economic Institute; the Independent Contractors and Business Association of British Columbia; the Fédération des chambres de commerce du Québec; Professor Ian Lee of Carleton University; Douglas J. Forer, a partner with McLennan Ross; Moin Yahya, an associate professor with the University of Alberta faculty of law; Francis Donovan, a butcher at Safeway Canada; Marc Roumy, an Air Canada flight attendant; Brian Johnston, a partner with Stewart McKelvey; the hon. Michel Bastarache, a former Supreme Court justice; and Ken Pereira, a union worker and union leader, just to name a few.

That being said, I want to assure my colleagues across the aisle that the Liberals are not the only ones who hold consultations. The Conservatives also held some, which revealed that our provisions in support of union transparency were welcome and desired.

Fourth, it is one thing for the Liberal government to ignore the surveys and the people consulted, whom I mentioned, and to believe that its position is what is best for Canadians. However, another moral principle comes to mind when I look closely at that position, and that is the principle of political independence.

In order to ensure that the government remains impartial and able to make decisions in the public interest and free from outside influences, I think it should avoid associating with lobby groups that have an interest in the business of government. That is certainly not what we are seeing at this time.

Here is how I see it. First, this is a bad law for democracy, transparency, and accountability. Second, it is pretty clear that the purpose of this law is to thank union leaders for their support in the latest election campaign. Third, the Liberal government's very first piece of legislation will take away workers' power just to make union bosses happy. Fourth, this law will not protect workers. It will open the door to workplace bullying because employees will have to state their position on unionization publicly rather than secretly. Fifth, transparency is a fundamental principle, and by overturning the old law, the Liberals are flouting this principle. Sixth, even though the law did not regulate union activities or how unions could use their money, it did provide for accountability. Seventh, unions are the only private organizations that have access to funds that people are required to pay, which is like the power to tax. Mandatory contributions, unlike voluntary contributions, should entail a moral obligation to demonstrate transparency. Eighth, since unions are already required to open their books to their members, it should not cost them much more to open their books to everyone. Ninth, union dues should not be used for purposes not approved by union members.

I did not get into politics to criticize excessively everything the government opposite does. I believe we must work together in the House to make the best possible decisions in the public interest.

That being said, I want to use this last part of my speech to share with the government the way I see things with regard to unionization, which, in my view, represents how a very large segment of the public feels about this as well.

What is more, since the Liberal government keeps saying that it wants to consult various stakeholders and different people and listen to their points of view before making decisions, then I would hope that my thoughts here will be taken into consideration.

First, as the member for Richmond—Arthabaska, the former mayor of Victoriaville, and a former school principal, I have worked and negotiated with a number of union groups on many occasions. These negotiations were always carried out respectfully, and for that reason, my perception of unions and unionized employees is anything but negative.

On the contrary, I believe it is entirely appropriate for a group of individuals with common interests to ask someone to negotiate on their behalf. Essentially, the union's mission is to improve its members' working conditions, and that mission is absolutely valid and legitimate.

However, the comment made by the Minister of Employment, Workforce Development and Labour that unions play a critical role in ensuring that workers receive decent wages and are treated fairly in safe, healthy work environments seems to suggest that the law passed by the previous government undermines the unionization principle and workers' rights, and that is completely untrue.

The minister should also know that just because employees are not unionized does not mean that their rights will not be respected. I am fortunate that my riding is home to Cascades, a family company that has been in Kingsey Falls since 1964 and still employs nearly 11,000 workers in North America and Europe.

Thanks to the management philosophy of the Lemaire brothers, employees of many of the company's operating units voluntarily chose not to unionize because they know that they are afforded favourable working conditions. This company shows that it is not necessary for employees to be unionized to have excellent working conditions. I would like to take this opportunity to commend Cascades and all of the companies across the country that take care of their employees.

Finally, the bill is a direct attack on democracy, accountability, and transparency. It does nothing to protect workers or the public.

[Rémi Massé, Liberal, Avignon—La Mitis—Matane—Matapédia, QC]

Mr. Speaker, our government is determined to restore fair and responsible labour policies in Canada because unions and employers play an important role in protecting the rights of Canadian workers. They help make the middle class more accessible and help it to grow.

We need to work with labour organizations, not against them. That is why we have kept our promise and that is why I invite every member of the House to support this important bill.

We introduced Bill C-4, which repeals the legislative changes made under Bill C-377 and Bill C-525. That is an excellent decision.

Unions and labour organizations have expressed strong opposition to these two laws since they were introduced in Parliament. In spite of everything, obviously, some people may oppose Bill C-4. We are prepared to listen to the concerns of all of the parties involved.

However, I would like to be proactive and explain to the members here today that, despite what some may think, Bill C-4 will be good for labour relations across Canada. Certain supporters of Bill C-377 indicated that it was necessary to improve union financial transparency. They also said that it was necessary to ensure public access to information on union spending, given the favourable treatment that unions receive under taxation law.

However, these arguments do not hold water. Section 110 of the Canada Labour Code already requires unions to provide financial statements to their members free of charge upon request. What is more, provincial labour statutes include similar requirements. Also, the onerous disclosure requirements apply only to labour organizations and labour trusts. They do not apply to other groups that also benefit from special tax breaks under the Income Tax Act. This practice discriminates against unions.

I realize that some provinces have raised questions about repealing Bill C-377. British Columbia's finance minister wrote to the Senate to express his support for this bill. He said there was merit in increasing union transparency, since unions receive tax advantages. However, as I said, these onerous disclosure requirements discriminate against unions, and British Columbia's opinion is not shared by the majority.

Seven provinces came out against Bill C-377, claiming that it encroached on their jurisdictions. These provinces are Quebec, New Brunswick, Alberta, Manitoba, Ontario, Prince Edward Island, and Nova Scotia.

As for Bill C-525, employers and other stakeholders who support union certification by secret ballot could be displeased. They do not need to worry, though, since the previous card check system for sectors under federal jurisdiction was successful for many years. This system is still used in many provinces.

As for Federally Regulated Employers, Transportation and Communications, some non-unionized members could have a problem with the repeal of Bill C-525. They could be concerned that this bill is being repealed but stakeholders have not been consulted.

I want to reassure them. We are doing this because we want to listen to all of the stakeholders. By repealing the legislative changes made by Bill C-377 and Bill C-525, we will simply go back to the way things were so that we can start over again. We will do more than our predecessors and ensure that all stakeholders are properly consulted before any changes are made to federal laws and policies.

We aim to restore a climate of co-operation and develop evidence-based policies. All parties must participate in a constructive manner.

We will use genuine consultations as the basis for developing labour policies that will make Canadian workers and employers more prosperous and improve the economy overall. Those are just some of the ways that Bill C-4 will be good for labour relations and, as a result, our economy.

It is clear that repealing the changes made by Bills C-377 and C-525 is the sensible thing to do. We are listening and acting respectfully. Our government made a commitment to enhancing Canadians' economic and social security, and that is what we are doing.

In my riding, Avignon—La Mitis—Matane—Matapédia, employers, unionized workers and unions have joined forces to defend our region's interests.

In a remote region such as ours, it can be hard for workers and people in general to make their voices heard. Mainstream media do not often talk about what is going on in our regions, but we are coping with major issues too. I would like to share a personal and professional experience. In the fall of 2014, when my region was contending with major cuts in several sectors of our economy, we got word that Quebec CEGEPs were slated for yet another round of cuts. At the time, I was the executive director of the CEGEP de Matane. Management and employees alike felt powerless to do anything about all of the budget cuts, which were going to result in job losses, raise the unemployment rate, which was already three times higher than the Canadian average, and exacerbate a very difficult economic situation. Rather than endure the cuts alone, I decided to get all of the CEGEP employees and their union representatives together, and I put an unusual idea to them. I suggesting holding a two-day retreat to discuss the repercussions of the cuts in the region with relevant experts and donating the equivalent of two days' salary to the CEGEP de Matane foundation. In return, I promised not to cut a single job. The goal was to mitigate the cuts and clearly demonstrate our commitment to our community, our workers, and our CEGEP.

In an unprecedented expression of solidarity, all the employees, their union representatives, their union, and the entire student population supported this initiative. We had two days dedicated to reflection, and we all contributed two days' salary to the CEGEP de Matane foundation. We mobilized a number of local socio-economic stakeholders who joined forces to defend the interests of our workers and our region.

Division never serves the community. It is time to come together and develop a relationship of trust with our workers. Together, we can create real, positive change.

[Rodger Cuzner, Liberal, Parliamentary Secretary to the Minister of Employment]

Mr. Speaker, it is a pleasure to join in this debate today.

Governing is all about seeking a balance between things like the environment and the economy, between one part of the country and another, between social and economic values, and between labour and business.

I do not believe there has been any government in recent history that has thrown so many things out of balance, allowing ideology to trump evidence and political expediency to replace due process, than the previous Conservative government. Such has been the case in its actions towards labour relations and workers' rights in this country.

After years of attacks on fundamental labour rights, it is very gratifying that one of the first acts our government is doing is restoring fair and balanced labour laws that respect the integral role played by unions and their importance to a strong middle class and a fair and prosperous society.

Labour law systems are very complex. The ones that work well are based on a delicate balance between the interests of labour and management that must be respected if and when reforms are made. The federal labour relations system is well regarded and supported by both labour and employers, as the result of a genuine and proven consultative and consensus process that has been followed for decades in amending labour laws.

One of the most comprehensive changes in recent history to part I of the Canada Labour Code was the result of a full consultative process. It was chaired by the well-respected labour neutral, Andrew Sims, who produced a report entitled “Seeking a Balance”. Mr. Sims said that if labour law is to be changed, it should be because of two things. It should be because there is a demonstrated need due to the legislation no longer working or serving the public's interest, or done on a consensus basis.

There are perhaps no greater examples of how the previous government showed contempt for these principles and upset the labour relations balance than the two private members' bills that Bill C-4 seeks to repeal. Bill C-377 and Bill C-525 were deeply ideological and highly partisan pieces of legislation that served no public good or policy objective. Their sole purpose was to diminish and weaken the labour movement in this country.

These types of labour policies, based on ideology rather than evidence, produce unstable labour laws that hurt, not help, the interests of employers, employees, and the economy in the long term.

Bill C-377 was badly crafted and is fundamentally flawed legislation that made unprecedented and unwarranted disclosure about unions and their members, as well as other organizations that do business with unions, based on no demonstrated need for this law.

Constitutional experts have said it was unconstitutional. Privacy experts believe it will violate privacy rights of millions of Canadians. Seven provinces, representing more than 80% of Canada's population, opposed it, as it interferes with provincial jurisdiction over labour relations.

Even well-respected Conservatives such as retired Senator Hugh Segal said it was “badly drafted legislation, flawed, unconstitutional and technically incompetent...”.

Both the current and previous Privacy Commissioners said that the bill was a serious breach of privacy in their testimony at the House and at Senate committees. Past privacy commissioner, Jennifer Stoddart, said quite clearly that Bill C-377 was a “a serious breach of privacy.”

The current Privacy Commissioner, Daniel Therrien, said more bluntly that he thought the bill goes too far. In his words, a balance should be struck between transparency, which is an important value, and privacy, which is a value that is also just as important, something Bill C-377 failed to do.

To prove how unfair and unbalanced this bill is, let me share a short story. In 2012, I wrote to the Canada Revenue Agency and asked if they could provide the same information on its employees that Bill C-377 was asking of labour organizations. Its response was that it could not provide the information. The information I received from CRA is that the Privacy Act precludes the CRA from disclosing personal information about its employees. Therefore, CRA, the agency that was set to enforce this law, could not comply with exactly what was being asked of organized labour, of unions, though the passage of Bill C-377.

The second piece of legislation that Bill C-4 will repeal is Bill C-525, the Employees' Voting Rights Act. Like Bill C-377, there was never any evidence provided in support of its need. It was simply another solution in search of a problem. Politically motivated and ideologically based, its sole goal was to make it harder for unions to certify and easier for unions to decertify.

The sponsor of the bill, the member for Red Deer—Lacombe, claimed that the bill was needed because of the “mountain of complaints” regarding union coercion of workers during union certification campaigns.

He said the following in Hansard:

When we hear one person complain about the actions of union organizers, that can be dismissed as a one-off situation. However when we see the mountain of complaints that end up at the labour relations board, it is concerning to me.

That is a serious claim.

Many members might be surprised that when the chair of the Canada Industrial Relations Board appeared before committee during study of the bill, she said that out of 4,000 decisions rendered by the CIRB in the previous 10 years, there were only two complaints of unfair labour practices by unions. That is quite a mountain. She said there were actually more founded unfair labour practice complaints against employers rather than unions.

Bill C-525 made a significant change to the fundamental rights of workers in how they organize themselves, without evidence for its need, bypassing the established consultative process that is critical to maintaining balance in labour relations. Does anyone believe that this is a responsible and fair way for government to make laws that affect the fundamental rights of Canadians?

The previous government was intent on injecting political ideology into labour relations, to a degree that has never been witnessed before at the federal level. I believe both employers and labour would agree that this does nothing to promote harmonious labour relations and is not in the best interests of the economy or our society. Governments must always seek a balance in how they govern, and perhaps no greater place is this required than in labour relations.

The stakeholders in the federal labour sector long ago developed a proven consultative process to amend federal labour legislation. Past Liberal and Progressive Conservative governments supported such a process because it provided legislative stabilities for all stakeholders, and it worked. As a result, there existed a delicate balance that served fairly the interests of employers, unions, workers, and the Canadian economy.

Both Bill C-377 and Bill C-525 politicized that process and undermined the balance in our labour relations system. They were short-sighted labour reforms made without a legitimate consultative process, driven by ideology rather than evidence.

That is why our government is repealing Bills C-377 and C-525. We are committed to the tripartite consultative process, and it is our hope that Bill C-4 will help to re-establish what Andrew Sims said was so important to our modern labour relations regime, and that is balance.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I am not anti-union. My father was a CAW worker for 35 years, my mother and daughter are both part of the teachers' union, and I was married to a welder from local 663.

However, many union workers before Bill C-377 were upset that many unions received their member dues and were spending them to support the NDP without a secret ballot to get a majority vote.

My question for the member is: Does he see anything in Bill C-4 that would protect the rights of union members?