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

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, when I look at Bill C-377, I look at the issue of transparency and accountability. I think the members of the previous government did a very good job at making sure that the union members were aware of where their money was going and how it was being spent. This was what it was about. I do not begrudge that.

I find it kind of funny that the hon. member would be talking about polling, and our polling, when in fact they are the ones who do most of the polling to find out exactly how people are thinking.

[Erin Weir, NDP, Regina—Lewvan, SK]

Mr. Speaker, the member for Barrie—Innisfil started out by quoting a polling, suggesting that most people supported Bill C-377 and in fact wanted it extended to employer organizations. I could ask the hon. member who paid for that polling, but instead, if for argument's sake we accept that is true, then why did the former Conservative government not apply Bill C-377 to these employer organizations?

The answer we seem to be getting from the Conservatives is that those organizations are voluntary and only unions are mandatory. However, if one wants to work as a doctor, one has to join the Medical Association and has to pay dues. Those dues are tax deductible, just like a union. If one wants to practise as a lawyer, one has to join the Bar Association and has to pay dues to the Bar Association. Those dues are tax deductible.

I want to give the member for Barrie—Innisfil another chance to answer the question of why Bill C-377 was only imposed on trade unions.

[John Brassard, Conservative, Barrie—Innisfil, ON]

Madam Speaker, I have been struggling to find some rational reason why the Liberals have decided to introduce Bill C-4 to repeal Bill C-377 and Bill C-525 without any chance of allowing both bills to be tested over time.

I was a proud member of the International Association of Firefighters prior to being elected to this chamber. I started my union involvement early in my career, becoming an executive officer and secretary of our association. After a period of raising our children, I became president of our local for three years. I contributed to our provincial and international association, lobbying on behalf of firefighters and their families with all levels of government.

Our association talked about our issues to those in office and we were appreciative of the time they gave us. We hoped our talks with politicians would be in the backs of their minds when the issues came up, not just in caucus, but around the cabinet table. Political action at the time was more about education than it was about influence. There was no political action funding, no well to draw from, and it was simply a matter of working hard to have our issues understood.

As an association, we strove for better understanding and better agreements for our members. Our members came first. Now, as a member of the House, my focus does not differ. I serve in the House for the best interests of my constituents, many of whom are union members.

Last year, a Forum Research poll showed 62% of Canadians approved of Bill C-377, while only 18% disapproved of it. I am assuming that many who were asked are also union members. The survey also revealed an appetite for even greater transparency with 78% of those surveyed saying they would like to see the bill expanded to include employer groups like the Canadian Federation of Independent Business and the Canadian Association of Petroleum Producers.

The labour strategy has evolved. We realize that we can actually influence the decision makers beyond just education. We can actually help candidates and now parties win campaigns.

By funding campaigns with targeted political action funding, we were having an impact. When we started, there was little accounting of how much our union dues were being used for this activity. However, as the request for more direct funding was made, we were able to account for just how much funding was being directed to a political activity and it was quite a lot of money. With the ability to finance massive negative advertising campaigns against a candidate or party, a union's influence has increased exponentially in the modern political age.

Political action funding targeted directly to influence election campaigns is widespread and whether this type of engagement is ratified by the membership at large has become inconsequential.

Prior to Bill C-377, there was virtually no accounting of how much of our union dues were being used for this type of blatantly partisan political activity. To see the effect PAC funding has had, one only has to look back some 15 years in Ontario to see why this is happening now more than ever. As partners of the Liberal government in Ontario, unions have had their way with the government because the borrower is always servant to the lender. They have had the Liberal government's ear and have influenced a vast array of policies and yes, even the outcome of elections in spite of the fact that many union members do not agree with what party that money is supporting.

The union spend over the airwaves in the 2014 Ontario election should make any member of the House and members from legislatures and assemblies from coast to coast to coast blush and take notice.

Members of the House, legislatures, assemblies, and in fact unions across Canada should also heed a strong warning and look at the problems that support for a Liberal government has had on its union members in Ontario.

Failed government policies have resulted in plant closures and lost jobs, lower wages and benefits, and have caused many job and wealth creators to leave the province. Failed government policy has also resulted in choking debt and deficits. That has impacted union members in Ontario with cuts in health services and has impacted their quality of life.

I would humbly suggest that the biggest threat to the union movement and its workers in this country is not Bill C-377, but rather bad government policies. It appears that the federal Liberal government is on the same path as Ontario.

The repealing of Bill C-377 is nothing more than payback for the help the Liberals received this fall. Bill C-377 sought to establish mechanisms of transparency and accountability. I have heard the arguments against it, but the question is a simple one: What is wrong with being transparent and accountable?

A good friend of mine and former member of the House once told me that there is no monopoly on a good idea. The need for transparency in our institutions should be universally accepted in the House no matter which team we play for. Transparency is a good idea and it needs to continue to be one of the hallmarks of our Canadian democracy. It should be about what is good for all workers, and that includes trade unions. Canadian taxpayers accord individual union members deductions to support their unions under the Income Tax Act, that same deduction I benefited from as a union member for 30 and a half years.

What is wrong with transparency and disclosure? I suggest the only thing wrong with transparency and disclosure is if there is something to hide. During the election, because I was a candidate for a party that brought in Bill C-377, I heard from many fellow union members, who had been hearing from their executive and leadership how bad Bill C-377 was for labour. When I asked the members of my union and others I ran into at the door what was so bad about it, the only answer they could come up with was that it was intended to bust unions.

Nothing could be further from the truth. Laws similar to the one brought in by the previous government exist in other countries and the union movement in those countries has not been busted. Repealing Bill C-377 does not promote an open and transparent system. Quite the contrary, it puts unions and union leaders back in the shadows, keeps memberships in the dark, and does not follow the principles of our democracy.

On the issue of Bill C-525, union certification and decertification votes can be highly charged political events that can cause union members to be intimidated by a process that exposes one's views. It can cause stress and fracture relationships. Why should they not be held in secret ballots and why should someone not have the right to keep their views tightly held to them, and them alone? Bill C-525 eliminated coercion, removed intimidation, and mirrored the right of every Canadian who casts a ballot to be entitled to cast their votes in secret and to vote with their conscience.

On February 3, 2016, my colleague from Louis-Saint-Laurent asked a question in the House of the Minister of Employment, Workforce Development and Labour and she responded on behalf of the Liberal government. He asked, “Yesterday the Prime Minister said, in answering a question I asked him, that Bill C-525 is undemocratic. Can the minister explain to this House how it could be undemocratic to have a secret-ballot vote?”

Her answer to the chamber was, “it is undemocratic because the process used by the previous government did not include consultation. They did not go out into our community and apparently did not even consult with employers.”

How much consultation has the government held on repealing these acts other than to meet with those writing big cheques to the Liberal Party caucus? How much consideration is being given to allow fairly recent legislation to take root?

The U.S. passed a union transparency law in 1959, the labour-management reporting and disclosure act, or, as it was better known at the time, the union members' bill of rights. The act was intended to protect and promote democratic processes and democratic rights of union members, including the freedom to vote at meetings, to express any argument or opinions, and to voice views upon union candidates and union business. The legislation stood the test of time for nearly 40 years, before Congress made some amendments to modernize it.

The bill before the House today is not sound legislation. It is more about paying back political favours and less about the strength of unions in this country. It is not in the best interests of Canadians, and I urge all members of the House to see it for what it is and reject it as a step backward.

[Wayne Long, Liberal, Saint John—Rothesay, NB]

Madam Speaker, I am a backbencher and I am new to politics. I certainly believe that everybody has a voice and everybody should have a say in what happens.

I did mention that there are a lot of union leaders in Saint John—Rothesay, but a lot of my good friends are hard-working union members. Whether union leadership or union members, it was pretty much unanimous that Bill C-525 and Bill C-377 were not popular in unions. They were designed as bills that were detrimental to unions. That is why a lot of people in Saint John—Rothesay supported me.

[Wayne Long, Liberal, Saint John—Rothesay, NB]

Madam Speaker, thank you for letting me have the opportunity to speak today. This is the first time I have risen to speak in debate. I first want to thank voters in my riding of Saint John—Rothesay for electing me. They elected me with a very strong mandate, almost 50% of the vote. I certainly want to acknowledge and thank the great MPs who ran and served in my riding before me: Rodney Weston, Paul Zed, Elsie Wayne, Gerry Merrithew, to name a few. This is a matter of note too. I am the third Liberal MP to serve in Saint John—Rothesay in the riding's history, so I am very honoured by that.

I also want to thank my great campaign team and my campaign managers, Warren Coombs and Warren Long, for their leadership in helping me along the way; and I certainly want to thank my constituents very much.

I was elected on a mandate to stand up for Canada's marginalized and middle class. The past 10 years of the Conservatives' attempts to degrade, demoralize, and dismantle unions cannot continue. That is what Bill C-4 begins to do.

I would like to begin my speech today by highlighting the proud history of unions in my riding of Saint John—Rothesay. We are the first incorporated city in Canada. I am tremendously proud to represent Saint John—Rothesay in the House.

In 1851, believe it or not, Saint John stood as the third largest city in British North America, with a population of 31,000. Saint John was led by the hands of merchants, financiers, railroad men, and most importantly and significantly, shipbuilders, envisioning a prosperous economic centre. At this time, business in our great city flourished, pioneered by the shipbuilding and rail community. Saint John was a stronghold for trade unions. With united and well-represented tradespeople, Saint John was a perfect example of how unions can positively contribute to our communities. Let us not forget that it was unions that built the middle class of our country. It is unions that protect the workers. It is also the Liberal Party of Canada that is standing up for the middle class.

Saint John was a perfect example of how unions can positively contribute to our communities. As a cornerstone of business, unions created a strong and vibrant middle class that built an unrivalled shipbuilding and trade hub for Saint John.

As Saint John proved that the strength of our economy relies on the middle class, bills like Bill C-377 and C-525, and the proposed amendment from across the floor, weaken the labour movement and hold back Canadian potential. The bills must be repealed.

In 2016, unions continue to play a vital role in my riding's economy. I stand up for, and will continue to stand up for, local unions such as our local firefighters union, police union, IBEW, the Public Service Alliance, and many more. We are a union city. That is exactly what Bill C-4 does. It stands up for unions, Canadian workers, and most importantly, Canada's middle class. It is why I whole-heartedly disagree with the amendment presented by the member for Louis-Saint-Laurent, and I stand with the government in supporting Bill C-4 as currently written.

Bill C-4 should be supported by all members, without the proposed amendment, for two reasons. Bill C-377 creates unnecessary red tape for unions. Bill C-525 was supported without evidence, and neither unions nor employers wanted it. The amendment only seeks to undermine the purpose of Bill C-4, by pitting employers against employees.

At the time, the Conservative government claimed Bill C-377 was in large part justifiable due to the complaints received from union members. Let us be clear. These complaints represented 0.0002% of the over 4 million union members in Canada, while pre-existing legislation from both provincial and federal governments already required unions to issue financial reports and make them available to members.

This did two things. It created a massive unnecessary administrative burden as well as put unions at a major disadvantage during collective bargaining, making it more difficult for unions to influence the Canadian labour landscape. That is not what this government is about. In fact, it was the right hon. member for Calgary Heritage who stated in January of 2011: “Cutting red tape is a most effective way to show that we are making government work for people, not the other way around.”

The opposition could not justify support for Bill C-377 then, and it cannot justify it with these proposed amendments.

The amendment presented before the House speaks specifically to Bill C-525 and the certification and decertification of unions. This amendment seeks to oppose the exact goal of this bill. It cites legislation that was baseless and without evidence in 2014 and continues to be so in 2016. Bill C-525 was presented on the basis of consultations with labour unions and employers. However, neither employers nor unions sought out these changes or identified a single problem in the process in relation to this amendment.

Opposing this amendment upholds the commitment of our government to building evidence-based policy. If the Conservatives ever looked at considering the evidence, they would have found that their so-called mountain of complaints, which is how it was described at the time, was a whopping six complaints out of 4,000 decisions the Canada Industrial Relations Board made in the past 10 years. Although I am not a member from British Columbia, six out of 4,000 does not seem to be a very big mountain.

This amendment states:

...the bill violates a fundamental principle of democracy by abolishing the provision that the certification and decertification of a bargaining agent must be achieved by a secret ballot vote-based majority.

In fact, it does the complete opposite.

This amendment promotes a system that unions in Saint John—Rothesay and across the country agree has not been working well.

Bill C-525 eliminated card-check certification and added an unnecessary second step for certification. It has become an invitation for employers to interfere with the democratic right of workers to choose representation. Amendments made to this bill in 2014, went even further on the Conservatives' assault of democracy and the attack on unions by further lowering the threshold for decertification applications to reach a vote. It undermines collective bargaining and, to be clear, the Canadian labour movement.

I would like to clarify what the secret ballot vote-based majority discussed in the amendment actually means. It requires any organization seeking certification as a bargaining agent to enter into mandatory voting and replaces the card-check system whereby employees voice their willingness to form a union by signing a union card. In the system imposed by Bill C-525, unions require support from 50% of all employees instead of 50% of the employees who voted. If we were to apply this same logic to the 2011 election, which elected the previous Conservative government, it would have received only 23.6% of the vote, not even half of what is now required to form a union.

Numerous unions from my riding have voiced their opposition to Bill C-525, arguing that the card-check certification model is quicker, more efficient, and more likely to be free of interference.

In conclusion, as the member of Parliament from a community with a proven union track record, I unequivocally support Bill C-4 without the presented amendments. This amendment is just like Bill C-525, which is a complete assault on unions and especially employees. It has created a diluted form of democracy that gives employers too much influence over the creation of a union, and attempts to fix a problem that never existed, and is based on evidence never existed.

I am standing up for unions, and for the unions in Saint John—Rothesay, by saying no to this amendment and yes to evidence-based policies.

In closing, I would like to thank union leaders like Dave Stevens, Peter Anderson, Abel Leblanc, Pat Riley, Chuck Hickey, Darlene Bambridge, Debbie Ferguson, and other great people in the riding of Saint John—Rothesay, for taking a leadership position and helping unions grow in Saint John—Rothesay.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, it is hard to follow up with the reference to Donald Trump in this chamber. I will leave it at that.

I would like to refer to Bill C-377 and Bill C-525. The Conservatives often attached names to their bills. Basically these were known as bills to create two straw men. It was really an attempt to create an issue that had not existed and they sought a solution to a problem that did not exist. I say that because unions and corporations are barred from political donations.

Former Prime Minister Jean Chrétien brought this to the House, and it was something that I and my colleagues supported. It has been a good way going forward, and has been replicated by provincial NDP governments to ensure ordinary voters and citizens have as much of an impact on the voting process as larger and medium-sized corporations, big unions, and small unions do.

Another good change I saw was the limitations put on some of the lobbying activity that took place related to those donations. I often saw, through TPP grants, a former program, the government of the day, either the Conservatives or the Liberals, would have large grant donations go to companies under the TPP program. Those companies then would spend hundreds of millions of dollars in donations to the party. That was a bad practice.

Another bad practice was related to the funds that members of Parliament were allowed to keep in secrecy, different from the riding association. In the past a number of different MPs were able to accumulate funds independently. That has changed as well.

Those contributions, be it political, union, or corporate donations, are gone. Those were good, credible movements made by former Prime Minister Jean Chrétien. I give him credit for that because this is a better place and more reflective of the people.

With regard to the tone we heard from union bosses, this is nothing more than passive aggressive attacks on their institutions and Canadians who are democratically elected to their positions through their membership, and membership reviews. In fact, if the union collectively bargains for an agreement and the membership turns it down, it could then remove the leadership for the collective bargaining.

Sometimes it is done voluntarily, when the leadership recognizes it has missed the point from the workers. Most recently, we saw this take place in Ontario with public servants of correctional facilities. An agreement was turned down, and the message to the union negotiators, including the executive, was that greater accountability was needed and not enough was being done to win their support.

There are processes in place for accountability. Union members can get annual reports.

I would like to talk a little about some big union bosses, Rob from CUPE Local 82 and Dino from UNIFOR Local 444. We had a skate and donate program. CUPE Local 82 members took Family Day off and volunteered to help raise money for a local women's shelter and our downtown mission. I was fortunate to get two children's bicycles from UNIFOR Local 444. There were no complaints whatsoever. There were non-union, union, and other people from the not-for-profit sector there. We tripled our donations for those organizations and food banks. We also brought in triple the amount of food.

Big union bosses contribute so much on a regular basis to social justice causes; everything from refugees to a number of different programs, including food banks. They hold press conferences. Local 200 donates to eight children's groups. This is in the Windsor Star. It is in the public. All the members from local 200 are Ford workers. They have had a struggle with this economy. It is because of their quality of work, that we have not lost more jobs. We have seen the failed practices of Liberal governments in the past and the former Conservative government with respect to the auto industry, which shrank from number two in the world in assembly to number eight.

Despite that, we have investment taking place because the members of the unions are good workers and they run a series of health and safety programs to ensure injury reduction in the workplace. Unions have bargained for those rights to increase the productivity of the workers. Because of that, without any government investment at all, Fiat has invested in the Windsor Chrysler assembly plant. It is now hiring 1,000 workers to increase production for the new minivan now known as the Pacifica.

Despite the economic conditions, this plant is the number one manufacturing facility since World War II. It has been operating now for over 10 years on three shifts, and has been making money for the company, rescuing it at different times. As well, the unions have been donating money on a regular basis. Members know this because it has been in the paper. Local 200 has given to the autism society of Windsor and Essex, the Bulimia Anorexia Nervosa Association, the Windsor-Essex Children's Aid Child Abuse Prevention Portal, Computers for Kids, Childhood Leukemia Foundation, Canadian Mental Health Association, Griefworks children's program, Jumpstart, and the Sunshine Foundation Dreams for Kids.

This is not only published in the Windsor Star, but it also is also publicized in the general media through TV and radio. Therefore, union members know exactly what is taking place because they are tuned in. We have had long-standing representation from their executives, but they have had to win their workers over. That is done mostly through the confidence in their collective bargaining agreement and through their actions in the public.

There are hundreds of thousands of dollars locally in my community, and I am proud to say I have a union town. The hypocrisy about this is when we talk about secret votes. Let us set the record straight. Unions are not allowed secret votes, but it is okay for members of Parliament to have a secret vote to elect a Speaker. There is no problem with that. We have the Board of Internal Economy committee. We hunker down behind closed doors and nothing goes public, and that is okay. We have different rules.

When I was a city councillor, and that was a while ago, we could only go in camera, or behind closed doors when the public and media were excluded, for issues related to property, personnel, and conflict of interest. There were very specific rules. However, what I have seen in my years here is that if somebody sneezes, the committee can go in camera. It is a ridiculous process and it shuts the doors to accountability. Although the taping continues, we cannot make the information public later on. Member can access it to listen to the proceedings, but they cannot talk about it. It is outrageous that this hypocrisy takes place.

Bill C-377 and Bill C-525 trample on a number of different rights, which are often looked at by experts as constitutionally unacceptable. Most important, they will also cost Canadian taxpayers over $20 million just to instate a program and an additional $5 million for one bill alone. It is a cost that should not be accepted. Therefore, I and my colleagues support Bill C-4.

[Scott Simms, Liberal, Coast of Bays—Central—Notre Dame, NL]

Madam Speaker, obviously, with regard to what she is talking about right now, we will let the discussions unfold. I have always had a deep respect for public sector workers. I have always had respect for them, their remuneration, and anything dealing with the benefits they receive. Yes, I do. It is a negotiation between the government and the union. I realize that. I will leave that at what it is right now and speak about it later when the time comes to vote on that particular legislation.

What I am focused on right now is untangling the mess in Bill C-4, and I thank the member for her comments about it. She supports Bill C-4, and I appreciate that support for all the reasons we do: the injustices in the particular provisions contained within Bill C-377 and Bill C-525.

[Scott Simms, Liberal, Coast of Bays—Central—Notre Dame, NL]

Madam Speaker, I thank all of my colleagues who have spoken on the bill thus far.

This exercise is not so much about outlining the vision of the legislation that we have before us, but about untangling what has been tangled before. Therefore, we now find ourselves in this position where we are taking back two particular bills.

I will not specifically address the issue of private members' bills and how they are being used, whether for nefarious reasons or not. Personally, I respect private members' bills, no matter what they are. They are from a member and there is a reason they exist. However, I would like to attack these particular bills based on their policies and how they are unfair in this context.

Bill C-377 and Bill C-525 were bills that I did not support from the beginning. Therefore, we need to undo what has been done in order to proceed any further, and Bill C-4 would do just that.

Both Bill C-377 and Bill C-525 passed without the extensive consultation process traditionally used for labour relations law reform. This is what we call the tripartite way of doing things. We have the government, the union and organized labour and, of course, we have the employers, all of which need to be consulted on something as important as this, because it affects so many Canadians across the country. Changes to labour relations legislation has always been preceded by this.

I have two examples of how this was done. I would like to bring these examples to the House because they illustrate the way things should be done using the tripartite process.

In 1995, the Sims task force did extensive public consultations on part 1 of the Canada Labour Code, and included labour, employers, and government stakeholders. The name of the report is “Seeking a Balance”, which formed the basis of major changes that came into effect in 1999. Going further back to 1978, the second example I would like to use, was the Woods task force, which was another tripartite consultative process. It was used to bring about change to the federal industrial relations system.

However, with Bill C-377 and Bill C-525, there was not much consultation. I am not sure of all the work that the members did in response to these two bills, but I would assume that the opposition during the committee process both here in the House and in the Senate illustrates that a lot of consultation did not take place in this tripartite manner.

I will go to the part where the bill talks about some of the other non-labour practices of the former government. Of course, in many situations the Conservatives went against many of the unions and organized labour, and a result caused a very poisoned atmosphere over the past while. Whenever we heard the government talk about big union bosses and the like, it created a stir among organized labour and many governments, both provincial and here in Ottawa.

Here are some of the rules the Conservatives brought in: a requirement to provide information on the time spent by officers on political lobbying, which would then be made publicly available on the Canada Revenue Agency's website; and an obligation on unions to provide their financial statements to their own members for free and when they are asked for it.

This was almost a situation where the Conservatives wanted to create a solution to a problem that did not exist. They did so without the right amount of consultation and, as a result, neglected to see some of the steps that had been taken over the past 20 to 25 years by organized labour, employers and the associations they are represented by.

Bill C-377 was directed solely at labour organizations, and that was quite evident during the evidence that was given here in the House and in both House and Senate committees. It was directed at labour trusts and not at any other professional associations, which, by the way, benefited from similar treatment under the Income Tax Act, but they were not specifically told to be more transparent as well.

As hon. colleagues will recall, the Minister of National Revenue has waived the reporting requirements for 2016 in Bill C-377 knowing that we intend to work to repeal the bill.

I will go back to the debate that took place, before we get into Bill C-4. When Bill C-377 went to the Senate, a colleague of ours by the name of Hugh Segal, a Conservative senator at the time, was vociferously against the bill, to the point where he had brought amendments that were accepted at the time. I will read an editorial he did after retiring from the Senate about how he was against Bill C-377 and its fundamental principles. I will quote from his editorial:

The Canadian Bar Association questioned its constitutionality, as it sought to circumvent normal provincial jurisdiction over labour relations and trade unions by imposing Canada Revenue Agency reporting requirements via federal statute.

There he talked about the constitutional crisis that had been raised by this particular situation. We can question the constitutionality of the bill as defined by the powers directed by the provincial governments and the federal government, which are laid out quite clearly.

Former Conservative Senator Hugh Segal went on to say:

There was also the issue raised by many witnesses before the committee that reporting relationships for small expenditures being imposed on unions and union locals were not being imposed on other corporate or charitable/not-for-profit groups.

We saw this in the House of Commons testimony as well, when witnesses talked about how the same onus was not put on other associations to divulge or make transparent the activities they do and the contributions they receive, including from whom, which really would have created a balance.

The imbalance during labour negotiations was also talked about and mentioned in Hugh Segal's article and the point was made that information would be divulged by local labour organizations to the point where it would put them at a distinct disadvantage in certain negotiations.

I want to thank him for doing that, because I thought that in earnest he had put together some very viable amendments. Let us face it, like every bill of this size, there are good points and there are bad points, but Conservative Senator Hugh Segal attempted to make amendments. I should not say “attempted”, because he actually did make them. His amendments were accepted by members of the Senate, and then the bill was sent back here to the House for it to address it once more with those fixes in place. The House was prorogued.

Here, I know that everyone is just waiting to hear how this works, right? It is that type of day.

[Monique Pauzé, Bloc, Repentigny, QC]

Madam Speaker, earlier the Liberals brought up the fact that the argument that Bill C-377 was about transparency was false. The unions already have a legal obligation to provide detailed financial statements. Bill C-377 does not require anything or demand transparency from other professional associations, such as the Conseil du patronat du Québec, or chambers of commerce. This is a two-tiered approach.

As far as Bill C-525 is concerned, similar legislation was passed in the United States and the unionization rate dropped from 35% to 11%. Organized labour is the middle class and in Quebec that means teachers, nurses, bus drivers, and public servants.

Why are the Conservatives against the middle class?

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Madam Speaker, accountability is already there. Again, this is not a real argument. The accountability mechanisms in Bill C-377 go above and beyond anything that is reasonably necessary. I wonder why he thinks union members should have more accountability than members of Parliament when it comes to reporting their expenses.

As for a free vote, whether this is a free vote or not, I am happy to vote for Bill C-4. I welcome all the members opposite to have a free vote and join me in supporting Bill C-4 and helping unions prosper in our great economy.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Madam Speaker, I have been hearing this strange talk from the Conservatives about accountability and transparency. This is from a government that was the most secretive in Canadian history.

When we saw Bill C-377 go through, it was denounced by the Privacy Commissioner as an attack on the right to privacy. Conservatives are into the right to privacy when it comes to their friends, but we have a bill that was challenged for breaching the Constitution, breaching provincial laws, interfering with the right to organize, and was also attacked by the Privacy Commissioner.

I would like to ask my hon. colleague why he thinks the Conservatives, in their vendetta against their political enemies, would have thrown the important issue of the constitutional right to privacy out the window just so they could get at their political enemies. Do they still think they can stand up in the House and somehow credibly say they were on the side of accountability and trust?

[Kyle Peterson, Liberal, Newmarket—Aurora, ON]

Madam Speaker, I am honoured to rise in this House to speak in support of Bill C-4, and with it the repeal of Bill C-377 and Bill C-525. Bill C-4 is an important step forward and yet another example of this government following through on our promises.

Before I begin, I want to acknowledge that this is my first time rising in the House to speak in debate since being elected by the great people of Newmarket—Aurora. I want to thank the voters who placed their trust in me to represent them here in Ottawa.

I also want to thank the hundreds of volunteers who supported our campaign during the election. As a long-time resident of my community, I am truly honoured by this. I particularly want to thank my wife Andrea, and our two sons, without whom the success of the campaign would not have been possible.

I look forward to working with all members in this House in an effort to accomplish great things for our great country.

There is an important topic in front of us today, and that is Bill C-4. This government recognizes the important role that unions play in protecting the rights of Canadian workers and in helping to ensure a strong and prosperous middle class. Bill C-4 is an integral step to ensuring Canada's labour laws best foster positive and productive working relationships between employees and employers, an approach that strives for balance. If we look to Bills C-377 and C-525, the Employees’ Voting Rights Act, it is clear that balance was not the objective.

What is also clear is that a number of legitimate concerns were raised by stakeholders, which were ultimately ignored by the previous government. While it rushed to pass these bills just before the election for partisan gain and as a tool to punish unions, Bill C-4 would go a long way to restoring the fairness and balance that was lost under the previous bills. Not only did the legislation diminish and weaken Canada's labour movement, it was also counterproductive to ensuring a positive work environment. The bills were political gimmicks used for partisan gain and nothing more. They addressed no pressing problem, no great evil, and merely duplicated much of the legislation found in the Canada Labour Code and provincial regulations. We campaigned, and rightfully so, on repealing these hyperpartisan acts, and today we are closer to doing so.

It was clear from the beginning that Bill C-377 would create an unnecessary advantage for unions during collective bargaining, while Bill C-525 would make it more challenging to unionize and much easier for bargaining agents to be decertified. This meant that union members already facing challenging conditions when going through the collective bargaining process would have to tackle even more red tape and more uncertainty. This government wants to eliminate the unnecessary red tape and allow Canadians access to the kind of productive, positive working relationship between employees and employers that unions strive for and Canadians deserve. We will accomplish this through Bill C-4.

After the introduction of Bill C-377 by the last government, a number of high profile organizations were vocal about their opposition to it, including the Canadian Bar Association, the association representing police unions, and the federal Privacy Commissioner, to name a few. These organizations argued that Bill C-377 is ultimately an invasion of privacy for the significant number of people falling under its broad reporting requirements. Through several well-crafted and thoughtful, albeit ignored submissions, the Canadian Bar Association warned that this bill interferes with the internal administration and operations of a union, which is likely prohibited under the constitutional protection of freedom of association. Many provincial governments and employees agree, and the Alberta union of public employees launched a constitutional challenge against the legislation.

Beyond the likely unconstitutionality of Bill C-377, it would also be impractical to administer, including the high cost this would place on the Canada Revenue Agency to process the increased volume of disclosure. Though it is always easy to increase regulation or create more red tape, the costs, whether to the organization, or in this case to the government agency, can be significant and should not be overlooked. This is yet another reason to repeal this bill.

While the Conservatives wanted to increase the number of hoops for unions and their members to jump through, this government is committed to eliminating them.

To say that these bills were not a highly partisan move by the previous government would be false. All we need to do is look back over two years ago, when on June 26, 2013, a Friday afternoon just days before the summer recess, 16 Conservative senators broke ranks and voted to gut Bill C-377 and send the amended legislation back to this place. Parliament was prorogued before members of the House could deal with it, sending it back to the Senate without any changes. It took another two years before the long reach of the former PMO finally managed to accomplish what it set out to do in the first place and the law came into force.

Aside from the large number of organizations that were quite vocal in their condemnation of Bill C-377, a number of provinces, seven to be exact, also stood in opposition to it. These provinces already implement strong and important requirements for financial disclosure among the unions. Duplicating these measures not only encroaches on the jurisdiction of these provinces but also creates undue adversity for unions. Above and beyond these duplications, Bill C-377 also goes a step further and requires labour organizations to disclose more information than required of any other organization. This unfair treatment would ultimately have severe consequences on how unions operate in serving their members. Our government wants to protect the role of the union on behalf of the hundreds of thousands of Canadians who rely on them. Unions are a legitimate part of the Canadian economy and its social fabric.

Bill C-4 recognizes the concerns that were raised months and in some cases years ago, and addresses them by allowing the provinces to continue their work in their jurisdiction. Bill C-4 would also ensure that labour issues are free of the potential breaches of individual privacy rights that were so obviously threatened by Bill C-377. The provinces play an important role in securing the transparency and accountability of unions, and through the imposition of Bill C-377, labour units are thrust into unfair circumstances that make it challenging and sometimes impossible to be compliant.

Bill C-4 would clean up the mess that Bill C-377 left behind. It would restore balance to existing relations between unions and employers. It would get rid of the duplication of reporting requirements. It would remove the discriminatory nature of Bill C-377, and it would uphold the privacy of all parties.

This government has also been steadfast in its position on how best to rebalance the rights of workers and employers in Canada. Bill C-4 will be a welcome relief to the past government's back-door nature, exemplified by Bill C-525, a private member's bill that had no stakeholder consultation whatsoever yet will wield significant impact.

Bill C-525's impact spreads deep, from the way unions can form to how they operate, and ultimately whether or not they can decertify. Bill C-525 put in place a requirement for a majority secret ballot vote by employees before any bargaining unit can be certified or decertified, a clear and obvious attack on unions by the previous government. By changing these thresholds under Bill C-525, not only did the previous government make it harder for bargaining agents to be certified, it made it easier for a bargaining agent to be decertified. Bill C-4 will go a long way to re-establishing a positive working relationship between employees and employers to allow for a more efficient, quicker process. Through the repeal of Bill C-525, I am proud to say that the certification process will be more efficient and more likely to be free of employer interference.

This government will work hard for the rights of workers and employers across Canada, and Bill C-4 is the first step in rectifying the partisan attacks on hard-working Canadians by the past government.

I am pleased that I have had the opportunity to discuss such an important bill, which affects over 18,000 labour entities in Canada, including locals found in my riding of Newmarket—Aurora. This government stood before Canadians last October and made a commitment to voters that if the Liberal Party formed government, Bill C-377 and Bill C-525 would be repealed. Well here we are, a little over 100 days later, doing exactly that. This is a government that believes in bargaining in good faith and that unions play an important and legitimate role in the success of our economy. I am proud to have this opportunity in the House to defend those rights and look forward to a productive and respectful working relationship with labour unions moving forward. I urge all members to do the right thing and support Bill C-4.

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Madam Speaker, it is a pleasure to have this opportunity to speak in support of Bill C-4, which was introduced by the Minister of Employment, Workforce Development and Labour to repeal the legislative changes made in the previous Parliament by Bill C-377 and Bill C-525.

In the broader strokes, this particular bill ultimately aims to restore balance and a fairer approach in labour relations here in Canada. It seeks to restore the balance between employers, workers and, I would note, the government. This is ultimately what I found the most offensive part of the previous two private members' bills that were introduced and passed in the previous 41st Parliament, the notion of actually making sure there was a broad consultative process. From my perspective, because it was introduced as private members' legislation, it did not afford the same kind of opportunity that a piece of government legislation would have done. Had it been introduced by the government, the minister for employment would have been responsible for a broad consultative process with workers, labour unions, and other interested parties. Instead, it was done under private members' legislation.

I listened to some of the earlier commentary that our concern about private members' legislation somehow demeans the value of such legislation. That is not the case. There are appropriate times and ways in which private members' legislation should be brought forth, but there is no guarantee under private members' legislation of the same opportunity for a broad consultative approach that can be done by way of a government bill. For us, the reasons for bringing forth Bill C-4 are not only that it was a campaign platform commitment, but more importantly that of making sure that we do things by way of broadly consulting all Canadians. From my perspective, the former Bills C-377 and C-525 seem to be solutions in search of a problem when there was not a fundamental problem.

The other issue I want to raise is that the fundamental outcome of this legislation being put forward was to freeze labour relations in Canada. At its core, this approach by the previous government was fundamentally flawed. If we are to effectively move our economy forward, we have to bring everyone together, rather than taking the approach of the previous government which sought to divide people. That, again, was at the fundamental heart of those two pieces of private members' legislation.

I would like to use my time today to discuss the details of these two pieces of legislation, why they would be repealed by this government, and what the ultimate impact might be on unions and workers. In turn, this will give Canadians a sense of the benefit of repealing the legislation, as we are proposing under Bill C-4.

Let me begin with Bill C-377. This private member's legislation was introduced by the former member for South Surrey—White Rock—Cloverdale, Russ Hiebert. As I understood it, the purpose of the bill was essentially to force labour organizations and labour trusts to provide detailed financial and other information to the Canada Revenue Agency. That would include things like disclosure of salaries, time spent working on political and lobbying activities, and so forth.

From my perspective, the issue was not so much the disclosure but the fact it would apply only to labour unions. This information was not being required more broadly from other organizations, such as professional organizations. They were not asked to have the same standard of disclosure.

Therefore, from my perspective, that is somewhat problematic. While it might not seem, as framed by the members of the official opposition, that public disclosure is not unreasonable, if we really dig down deep into the particular issue, we will see there are some serious and substantive ramifications with their approach.

First, it creates an extra level of unnecessary and, ironically, by a government that was seeking to reduce red tape, a more bureaucratic process. The kinds of regulatory requirements that would be imposed upon smaller unions to comply with the requirements under Bill C-377 is particularly odious.

As well, the Canada Revenue Agency would also have to share this burden, multiplying the amount of the work the CRA would have to do. As a result, that cost burden would have been ultimately borne by all taxpayers.

The proposed changes were unnecessary because unions were already financially accountable to their members under the Canada Labour Code.

Provinces, in many instances, I believe in seven jurisdictions, indicated that this was also an encroachment on provincial jurisdiction. Many of them felt this legislation was potentially ultra vires of the provincial sphere. I find that ironic coming from that party, which talks so much about the importance of preserving the rights of provinces. This is already being regulated. Therefore, Bill C-377 imposes large financial and administrative burdens on labour organizations and labour trusts that were not ultimately required for others.

While the administrative burden and reporting requirements are significant, it would also have a chilling effect on the collective bargaining process and, potentially, give an unfair advantage to employers at the bargaining table because of the requirements of financial disclosure. For example, because of the nature of those disclosures, information about the strike funds of unions would potentially be available to employers. That same reciprocity does not exist for the unions; knowing the capacity of the employer to deal with a strike situation. As a result, the employer would have the advantage of knowing how long a union member might be able to be sustained in a strike position. It was not ultimately a function of an even application of so-called transparency in Bill C-377.

This brings me to Bill C-525. This was, of course, a private member's bill that was introduced by the current member for Red Deer—Lacombe. The bill basically attempts to make changes to the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, and the Public Service Labour Relations Act, which ultimately affects how unions are certified and decertified.

In a nutshell, that legislation was an attempt to make it more difficult for unions to ultimately get certification. It was not just problematic for unions, but also imposed some serious burdens on others as well. For example, there were real potential implications for a number of agencies, including the Canada Industrial Relations Board and the Public Service Labour Relations and Employment Board. These boards would have had to bear the additional administrative cost and logistical responsibilities in holding representation votes.

Under these changes, rather than under the CIRB's previous requirement to hold a vote to certify a union in roughly 20% of cases where less than a majority of workers have signed union cards, ultimately this would have meant a fivefold increase in work. Therefore, these bills are not a contribution to labour relations in Canada.

At the end of the day, these two pieces of legislation have done more harm to the nature of labour relations in Canada and they need to be repealed. I welcome the debate on this subject.

[Diane Finley, Conservative, Haldimand—Norfolk, ON]

Madam Speaker, I have a question for the Liberal government. Since it was elected in October last year, the new Prime Minister has promised more accountability, more transparency, and more openness, yet even though he put this in the mandate letters for his ministers and in fact he said, “We have also committed to set a higher bar for openness and transparency in government”, why is it that this, one of the Liberals' first pieces of legislation, in fact, would gut transparency and accountability that was created by legislation that we, as the Conservative government, brought in?

Repealing Bill C-377 and Bill C-525 sends a very clear message: The Liberals care more about thanking union bosses who helped them get elected than they care about the hard-working union members. These union members are the ones whose dues were spent without consultation. Union leaders need to be held accountable, and they need to tell their members and the public how their tax-advantaged income is spent.

Our Conservative government was a strong supporter of accountability. Our Conservative government introduced the Federal Accountability Act and other legislation designed to increase transparency in government agencies and crown corporations. Bill C-377 was simply about transparency requirements that fall upon entities that enjoy public trust and will allow Canada to catch up with other advanced economies when it comes to financial disclosure.

It is important to note that the union funding model itself delivers over $4.5 billion annually to labour organizations in Canada. If individuals work in a unionized workplace, they are required by law to pay dues. If they refuse, they are fired. This financial power alone should be reason enough to require enhanced transparency, and I will say a little more about that shortly.

The workers are forced to make these contributions, including those in my riding of Haldimand—Norfolk. They deserve to know how their money is being spent, as do members of the general public who subsidize this revenue through the tax system.

It should come as no surprise that a Nanos poll found that 86% of unionized Canadians support greater transparency for labour organizations, and a 2013 Leger survey said that 83% of all working Canadians want our union leaders to follow the example set by other nations' union leaders who joined with government to achieve public disclosure. Many of Canada's labour unions publicly supported Bill C-377. This is what Marc Roumy, a member of the Canadian Union of Public Employees had to say:

...many of my colleagues and [I] believe our union would be stronger if we had a truly open and easy access to our union's financial statements. If we have nothing to hide...

—then they should be able to get detailed financial statements, which they have fought for, for years.

If we are looking for support for these measures, look no further than the former head of the AFL-CIO, which is the largest labour organization in the United States. George Meany, who testified at the U.S. Senate union disclosure hearings said:

All of these [transparency] bills are based on...the goldfish bowl theory, the concept that reporting and public disclosure of union finances...will either eliminate or tend to discourage the abuses.... The AFL-CIO firmly believes this theory to be sound.

Even a former Liberal cabinet minister, Jean Lapierre, voiced his support for Bill C-377, stating:

Frankly, I agree with that bill because I think now every organization has to be transparent. The unions, a lot of times, have acted like they were private clubs. And so I think everybody should go to more transparency and I think that the initiative is welcomed by the membership and also by the public at large because why would you hide your financial statements if you get all those tax credits and what have you? So no, I think it's long overdue.

Canadian labour organizations receive over $400 million every year in tax benefits. The union dues are tax deductible and all revenues are tax exempt. These tax-exempt funds, drawn from mandatory dues, are funnelled into a wide range of causes, many of which have nothing to do with the collective bargaining process.

Canadians have a right to know how their tax dollars are being used to influence public policy, since, unlike charities, no constraints are put on the political activities of labour organizations. Sadly, unions are able to force employees to pay for the funding of political parties and lobbying activities they do not even support. For example, the president of the Communications, Energy and Paperworkers Union of Canada stated after the vote to merge his union with the CAW, “Can you imagine what it will mean to the CEP, the CAW when we’re the first unionized party that governs a country?”

I think Canadians deserve to know how the so-called super-unions plan to use the hundreds of millions of dollars at their disposal to achieve that end.

Labour organizations, quite frankly, enjoy a more privileged position in our society and economy than any other entity, yet they have no public reporting requirements, unlike charities; publicly traded companies; federal, provincial, and municipal governments; government agencies; boards; crown corporations; first nation bands; foundations; political parties; and MP, senator, and MLA offices.

Bill C-4 also sets out to repeal Bill C-525, which was passed by our Conservative government. Bill C-525 required the holding of a secret ballot for the creation and abolition of trade unions. According to four surveys by Labour Watch, support for secret ballots ranged from 86% to 92% among currently unionized Canadians.

The proposed abolishment of a secret ballot is an attack on the democratic process. All members of Parliament are elected by secret ballot, so why take this away from unionized workers? How can the Prime Minister say this is undemocratic when he and his entire caucus were elected by secret ballot?

The sad reality for many union members is that professional union organizers exert unacceptable pressure on employees, give false information, and will even resort to fraudulently signing cards on behalf of employees in order to get signed cards. Only secret ballot votes can counter such tactics. How can the Liberal government argue that this is what the majority of union workers want?

John Farrell, executive director of the Federally Regulated Employers, Transportation and Communications, told the Senate that “A secret ballot vote is the essence of a true democratic choice and is entirely consistent with Canadian democratic principles.”

What is the problem? What is the issue? The Liberals want to be legitimized, so why are they taking this away? Without any credible rationale, or really any legitimate discussion with union members, the Liberal government is gutting two significant pieces of legislation that were a victory for union members.

Perhaps the motive for Bill C-4 is quite simple. This is an opportunity to repay the union leadership that helped get the Minister of Employment, Workforce Development and Labour, an NDP MLA in Manitoba, elected.

Bill C-4 goes against the principles of transparency and accountability. It goes against the fundamental principle of democracy: the secret ballot. It goes against the wishes of hard-working union members themselves. This is why I will be joining my Conservative colleagues in voting against Bill C-4.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, Bill C-4 would repeal Bill C-377 and Bill C-525. It would turn around and ultimately strengthen the relationship with our labour unions across our great country.

As for the words “transparency and accountability”, we have heard for 10 or 12 years all about transparency and accountability and how the government was going to be so transparent and accountable. At the end of the day, it was a major disappointment because the government of the day, the Conservative government, was the complete opposite of transparent and accountable. As a Canadian, I found it a huge disappointment. There was a lot of talk, but what did it deliver? It was the exact opposite.