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

[Tracey Ramsey, NDP, Essex, ON]

Madam Speaker, I would like to thank the member for his speech honouring members in his community who are members of unions.

The NDP, of course, is pleased that the federal government has tabled legislation to repeal Bill C-377 and Bill C-525. I would also like to say that we noticed Bill C-377 would have cost a tremendous amount to taxpayers to implement, as well as to keep the database going.

In my community, many union members put money into their communities through United Way programs, non-profit organizations. Bill C-377 would have tied up the funds that union members happily put into their communities to keep them thriving when government programs are lacking.

Could the member across please speak to the ways that the union members in his community contribute as well?

[Matt DeCourcey, Liberal, Fredericton, NB]

Madam Speaker, the government is repealing two laws that have changed the way unions operate.

Bill C-377 has created unnecessary red tape and has put organized labour at a disadvantage in the collective bargaining process.

Bill C-525 makes it more difficult for employees to unionize and easier for a bargaining agent to be decertified.

The measures the government is taking in Bill C-4, are part of a plan designed to ensure that Canada's labour laws best serve employees and employers.

This new bill is part of the government's plan to strengthen the middle class in our great country and to fully recognize the important role that unions play in protecting the rights of Canadian workers.

This government started with a tax break for hard-working Canadians. In the riding I represent, that is a tax break for hard-working nurses, teachers, soldiers, and many other public servants.

We will follow that tax break with the new Canada child benefit, a monthly tax-free, income-tested benefit that would lift hundreds of thousands of children out of poverty, a benefit that will help nine out of ten Canadian families.

We will also support our veterans by restoring the option of the lifelong pension and by caring for their physical and mental health, and that of their families. It is the sacred obligation of the government to unconditionally support those who have unconditionally served for our safety and freedom.

The government will rebuild its relationship with indigenous Canadians on a nation-to-nation basis, a relationship based upon mutual respect, recognition of rights, and understanding of traditional knowledge.

This bill is also about respect and fairness, national economic prosperity, and supporting the middle class, which is made up of those dedicated workers who contribute to the growth of our communities and our economy.

It is clear that the previous government did not believe in fairness or the importance of unions and the role they play. Its actions were motivated by a desire to undermine the union movement.

Bill C-377 and Bill C-525 were counterproductive to a positive working relationship between employees and employers. Furthermore, it was not a widespread request of the business community. It was unnecessary and caused difficulties for unions.

The two anti-labour bills, which this bill seeks to reverse and reset, were direct attacks on unions by the previous Conservative government. They undermined the right for workers in federally regulated sectors to form a union, and imposed unnecessary and onerous reporting burdens on all unions.

The current government is taking a different route, which consists in listening to the union groups, communities, and legal experts who sounded the alarm about these bills that likely violate charter rights. A number of constitutional experts felt that Bill C-377 was likely unconstitutional.

Privacy experts said that the bill would compromise the private information of millions of Canadians. The bill also discriminates against unions. It does not take into account other types of organizations, such as professional associations. What is more, seven provinces are against the bill because they feel it encroaches on their jurisdiction.

As my friend, the Parliamentary Secretary to the Minister of Employment, Workforce Development and Labour has so eloquently stated, Bill C-525 was simply a solution looking for a problem.

Simply put, in over 10 years and after thousands of rulings by the Industrial Relations Board, there were merely two judgments against unions for questionable practices during union organizing.

That is why the government has taken significant steps to rebuild labour relations after a decade of acrimony between unions and the Conservatives. It is why the government has introduced legislation to repeal these two anti-labour bills.

I have the honour every day of representing the riding of Fredericton, which is home to many dedicated workers who have been unfavourably and unfairly affected by Bills C-377 and C-525, which are mean-spirited.

Educated, professional, proud public servants, many of whom are taking care of our aging population, live in the riding.

We are home to university scientists and researchers, themselves fostering creative approaches and solutions to the existential challenges we face as a society, as well as making new discoveries to the way we view the world and how we provide economic opportunity, social well-being, and environmental sustainability to our community.

We are also home to almost 1,000 civilian employees at Base Gagetown, employees who, amidst all the coming and going of our men and women in uniform, keep the lights on, the roads safe, and the buildings operational at Canada's largest military training base.

The economic and fiscal contribution of these professional public servants is enormous. Base Gagetown alone contributes upward of $600 million annually to the New Brunswick economy.

The base, the largest federal government asset and largest contributor to our socio-economic vibrancy in the riding, would simply not remain operational without the diligence and hard work of civilian employees, the support of their families, and, in fact, the support of the entire town of Oromocto, Canada's model town, which sprung up just over a half century ago to provide service and a home for the base.

Bill C-377 and Bill C-525 were not mere attacks on the civilian workforce at Base Gagetown. They were seen as an attack on the community of Oromocto. As I knocked on doors last winter, spring, summer, and fall, clear across the Oromocto community, I heard time and time again how the community felt largely betrayed by the former government and how it felt it was time for a positive change.

On October 19, the people of Oromocto spoke clearly and they spoke for that real change.

As the Minister of Employment, Workforce Development and Labour has said many times, we promised to repeal these bills because they are detrimental to labour relations. In Oromocto, labour relations have had a negative impact on the morale of the community.

Unions have a major role to play in protecting workers' rights and growing the middle class. The former government trampled on many basic labour rights that were hard won by the unions. That made it more difficult for workers to enjoy freedom of association, bargain collectively in good faith and work in a safe environment.

The government plans on restoring fair and balanced labour legislation that recognizes the important role unions play in Canada and respects their major contribution to the growth and prosperity of the middle class.

This begins with repealing Bill C-377 and Bill C-525, legislation that diminishes and weakens Canada's labour movement. This side of the floor knows that the bill may face a stiff test in the Senate. It is, however, sad to hear members opposite say that they will direct the Senate to kill the bill and continue to disadvantage the organized labour movement in Canada.

I believe the Senate exists to study and recommend improvements and enhancements to legislation. I hope the upper chamber will serve to do just that and will work collaboratively with all parliamentarians in the House.

Canadians elected a government that would ensure evidence based decision making. On balance, there was very little evidence to support the passing of these two bills. Canadians elected a government that work hard to reinstitute fairness in decision making. Over and above balance, there was nothing fair in these bills.

This government promised to stand up for Canadians, and this is exactly what we have set out to do, and Bill C-4 would do that.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I thank my colleague for his speech.

In response to the question I just heard, clearly, we do not need to talk specifically about an attack on unions. However, the inference is there. Obviously, it has been implied, not only in this debate but also in the debate that took place in the previous Parliament on Bill C-377 and Bill C-525.

When you look at the contents of the debates here in the House and the discussions that took place in the relevant committees, it is clear that the legislation was not meant to unshackle the workers, but rather to attack unions' ability to properly represent them.

The provisions in the bills, which later became law, not only undermined unions' ability to do their jobs properly, but also created a very specific and massive bureaucracy to manage minor situations, which is very surprising from a government that always claimed to prefer less bureaucracy.

How will repealing those bills, which is what Bill C-4 proposes, affect the bureaucracy that was proposed by the Conservative government of the day?

[Arif Virani, Liberal, Parliamentary Secretary to the Minister of Immigration]

Madam Speaker, I will be splitting my time with the member for Fredericton.

I am proud to stand today to speak in support of Bill C-4. The war on organized labour is over. This legislation would reverse the legacy of the previous government, which rushed through two anti-union measures, Bill C-377 and Bill C-525, just prior to the last election. Those measures put in place redundant reporting requirements and made it harder to certify and easier to decertify a union. With Bill C-4, our government would repeal both of these punitive pieces of legislation.

The reasons we are doing this are threefold. The old combination of legislation under Bills C-377 and C-525 was unnecessary, impeded collective bargaining, and was ideologically driven.

Argument number one is that the old legislation is unnecessary. No one asked for Bills C-377 and C-525. Employees did not ask for them, unions did not ask for them, and even employers were not clamouring for this legislation. These bills constituted a solution to a problem that did not even exist. The only champions of Bills C-377 and C-525 were the members of the previous government. The ostensible reason they asserted was that they were trying to promote increased financial transparency and accountability for unions and to inject democratic principles into their processes. This rationale was defective then, and it remains defective now. First, to the idea that unions are not transparent and that members do not get to see the financial statements or expenditures, this information was and has always been made available to union members. Unions are member-based organizations that release information to their members, information that is confidential.

My colleagues across the way keep harping on about how unions are undemocratic organizations. Once again, that is incorrect.

Unions meet regularly, and all members are welcome to participate. At meetings, members are empowered to hold their leaders accountable. Discussions and debate take place during the meetings, differences of opinion are aired, and solutions are put forward. Taken together, those aspects are features of a democratic system.

Unions also hold membership votes. Decisions are made by the members themselves. The members are the ones who make decisions and issue instructions. Leaders are elected by union members and can be removed from their positions. That is another key principle of a democratic system.

I say this with some experience. I am the product of an organized workplace. For the past 12 years, before being elected, I served as a civil servant with the Ontario public service, practising law as a crown attorney. I have first-hand knowledge of the transparency and accountability parameters by which unions abide.

Yet another argument offered by the previous government in support of the old package of legislation was that it represented a modest increase in the financial disclosure obligations for unions. Again, this is incorrect. The reporting requirement in old Bill C-377 calls for at least 24 detailed statements to be submitted by unions of any size, from the smallest groups to the largest national bodies. The collection and managing of these submissions would cost the government millions of dollars, $11 million to start the oversight mechanism and $2 million every year thereafter. Those are not my figures. They come from the Canada Revenue Agency and the parliamentary budget officer. Just so we are clear, under Bills C-377 and C-525, the previous Conservative government increased the size and scope of government and government regulation, adding to the amount of red tape and, more important, adding to the amount that Canadian taxpayers would be required to shell out for such additional bureaucracy. The irony is palpable.

Argument number two is that the old legislation impeded collective bargaining. As I said at the outset, Bill C-525 made it harder to certify and easier to decertify a union. With the new Bill C-4, we would repeal those provisions. Our government recognizes that certification of a union is an important part of the collective bargaining process.

As I mentioned, I spent 12 years as a crown attorney specializing in the area of constitutional law. Section 2(d) of the Charter of Rights and Freedoms protects freedom of association. That has been interpreted by the Supreme Court to include “the right to a meaningful process of collective bargaining”. Why is collective bargaining so important as to warrant constitutional protection? The Supreme Court has explained that, in paragraph 58 of a decision called MPAO.

The Supreme Court said:

The guarantee functions to protect individuals against more powerful entities. By banding together in the pursuit of common goals, individuals are able to prevent more powerful entities from thwarting their legitimate goals and desires. In this way, the guarantee of freedom of association empowers vulnerable groups and helps them work to right imbalances in society. It protects marginalized groups and makes possible a more equal society.

Collective bargaining is important because it helps to promote fairness and equality. We get that and we are not going to waste more taxpayer dollars litigating these types of cases in the courts. On that point, I would simply note that the charter challenge launched by the Alberta Union of Public Employees against the old Bill C-377 was suspended immediately upon our government's announcement that we would be repealing the government's punitive legislation.

However, it is not just me who understands the utility of collective bargaining as a vehicle for addressing inequality, it is also my constituents in Parkdale—High Park. It is people like Mr. Hassan Yussuff, the President of the Canadian Labour Congress, who is my neighbour in Roncesvalles Village and a tireless advocate for workers' rights. It is people like Wyatt Bilger, a hard-working carpenter and resident of my riding and a member of Carpenters Union Local 27. It is people like the countless artists, filmmakers, performers, and television producers in my riding who contribute so much culturally to our community, who are also proud members of ACTRA, the Alliance of Canadian Cinema, Television and Radio Artists. It is people like the hard-working tradespeople and manufacturing employees in Parkdale—High Park who are members of LiUNA, Unifor, and the CAW.

All of these individuals and groups appreciate what this newly elected government recognizes, that workplaces that include collective bargaining are a net positive, not a net negative for our communities.

Argument number three is that the old legislation was ideologically driven. There was no rationale whatsoever that informed the passage of Bill C-377 and Bill C-525 other than rigid, anti-union sentiment. To illustrate this point, let us look no further than the rushed passage of the bills through Parliament. Bill C-377 was one of the four bills to get to the Senate just before the writ was issued for the last election. It was expedited to the Senate and was made made into law. But one of the four bills that received support from all parties in this chamber was left to die on the Senate order paper in place of passing Bill C-377.

What I am talking about is Bill C-279 that had been introduced as private members' legislation by my NDP colleague, the member for Esquimalt—Saanich—Sooke. Bill C-279 was going to amend the Canada Human Rights Act to include gender identity as a prohibited ground of discrimination. All parties supported and passed that private member's bill in the House in the 41st Parliament. However, instead of championing that bill in the Senate, the previous Conservative government decided to promote the passage of Bill C-377. Conservatives chose to attack organized labour rather than back Bill C-279, which would have protected the rights and freedoms of gender and gender variant Canadians who deserve the same treatment and rights as every other Canadian.

Not only did the Conservatives attack unions, they told trans and gender variant Canadians that their rights were not a priority. Thankfully that was yet another mistake of the Conservatives that our government has pledged to rectify. The commitment to amend the Canada Human Rights Act to add gender identity as a prohibited ground for discrimination is in the mandate letter for the Attorney General of Canada.

We have seen this ideological pattern before in terms of the old war on the environment, the war on the civil service, and the war on evidence-based policy. We have taken stands to reverse all of those previous battles. Now with Bill C-4, our government brings to an end the war on organized labour.

The role of this government, of any government, is to create jobs, but it is not just about creating any jobs, it is about creating good quality, secure, well-paying jobs. We recognize that unions help to do this. They ensure fair compensation for workers, promote safety for individuals, and protect workers' job security and their well-being.

A secure worker is a more productive worker and productive workers are good for the economy. We understand this. The previous government did not. As I said, the war on organized labour is over. Unions are not the enemy of progress, they are a partner in that progress. Our government is committed to working with them, not against them, to further the economic development of this country.

For these reasons, I urge members in the House to vote in favour of Bill C-4.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Speaker, I listened to my colleague's speech and his answers with rapt attention. I participated in the debates on Bill C-377 and Bill C-525, which are now law.

Many of the aspects of these bills that we discussed and voted on were clearly designed not to address a specific problem but to undermine unions' ability to do their work. One of those aspects is the mandatory disclosure of expenses in excess of $5,000, initially, and salaries over $100,000.

I would like to know why the government of the day, which is now in opposition, wanted to create that kind of bureaucracy to monitor small expenses, which are transparent for all unions anyway?

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

Madam Speaker, I have to say in all transparency that I am absolutely shocked by the comments made by members opposite today in debate on this legislation.

My riding is Saint John—Rothesay and it has a deep and historic labour movement, a very strong labour history. I had the pleasure two weeks ago to visit the Frank & Ella Hatheway labour exhibit and was given a tour by George Vair and Chuck Hickey.

The party opposite's agenda over the last 10 years has been nothing short of degrading and demoralizing union workers and its own union workers in the Public Service Alliance of Canada. I have many friends in that union. Over 10 years they have been demoralized and degraded.

Let us be clear. Bill C-377 and Bill C-525 were designed for one reason and that was to weaken unions.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, union financial disclosure is already addressed in the Canada Labour Code and in many provincial statutes. Bill C-377 was an onerous bill that provided extra red tape to unions and did nothing to further the employee and employer bargaining process.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, we need a fair and balanced approach restored in the collective bargaining process in Canada. Workers' rights and views need to be represented at the bargaining table in a fair and balanced manner. That is what the bill aims to achieve.

In a democracy, unions and the formation of unions is a fundamental right and we fully support that within the bill.

Bill C-377 was punitive to unions. It ignored the employer bargaining units. It did not look at them at all. It was a poke at unions to be frank. The right thing to do is to repeal it, and that is what we will do.

[Guy Lauzon, Conservative, Stormont—Dundas—South Glengarry, ON]

Mr. Speaker, members will recall that Bill C-377 was around for a long time. It was sponsored by one of our colleagues, Jeff Watson. Jeff worked tirelessly to bring it to fruition and make it law. I once asked Jeff why he was working so hard for this. He used to be a very enthusiastic union member in the auto industry. He said that he was doing it for his colleagues who were on the line, his fellow union members.

I used to be in the PSAC union. I understand guys on the line, the people doing the actual work. They wanted Bill C-377. As I said, Bill C-377 was around for a long while. In my own personal personal experience, I had two people come to see me about Bill C-377 and tell me we should not endorse it. I also had 33 people come to me and say that we needed Bill C-377. They said that they needed it for their organizers.

How could that member and that party go against the rank and file of our great labour movement?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, I rise today to talk about a very important bill, a bill I invite all members of the House to support in order to restore a clear and balanced approach to labour relations in Canada.

Before I begin, I wish to acknowledge that both my parents were union members. It is through the labour movement and through their fight for fair wages, fair benefits, and safe working conditions that my family and our family prospered in Canada. We owe it to a strong middle class.

If passed, Bill C-4 would repeal the legislative changes made by Bill C-377 and Bill C-525, both of which have undermined labour unions and labour relations in our country. Let me tell members how.

I will start with Bill C-377.

Bill C-377 amended the Income Tax Act to require all labour organizations and labour trusts across Canada to provide very detailed financial and other information to the Minister of National Revenue. This information would then be made available to the public on the Canada Revenue Agency's website. If labour organizations do not comply with these rules, they would face hefty fines.

At first glance, these new reporting requirements might seem like a good thing; sharing financial information promotes transparency and accountability. I am sure members of the House would agree that is a worthy goal. I do. However, and there is a big however, if we examine the bill further, we will find that in fact it discriminates against labour unions.

First, Bill C-377 discriminates against unions because it places onerous, unfair public reporting obligations on them that do not apply to other organizations, such as professional associations that benefit from similar treatment under the Income Tax Act.

Why is this onerous task imposed on unions alone? Why tip the scales? Perhaps these financial reporting requirements would be justified if similar requirements did not already exist elsewhere, but they do.

Unions already are required to disclose financial information to their members under the Canada Labour Code and many provincial labour relations statutes. This includes British Columbia, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia and the beautiful province of Newfoundland and Labrador.

In addition to Bill C-377 discriminating against unions, it is also unnecessary. It creates an extra administrative burden, just another layer of red tape. The Liberal Party of Canada does not like red tape.

There is another reason that the bill is inherently unfair to labour unions. Simply put, it creates an imbalance between unions and employers during the collective bargaining process. How exactly? By giving employers access to key union information, without employers being required to share similar information. This makes for a very uneven playing field during the collective bargaining process.

For example, employers would know how much money the union had in a strike fund for a possible work stoppage and how long they could stay out if it came to a strike. This clearly undermines the union's most important negotiating lever.

I would like to move on to Bill C-525, which Bill C-4 would also repeal.

Bill C-525 changed the way that unions were certified and decertified under the Canada Labour Code, the Parliamentary Employment and Staff Relations Act and the Public Service Labour Relations Act. It replaced what is known as a card-check system with a mandatory vote system.

For decades, and I emphasize decades, prior to Bill C-525 coming into force, 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 there was still enough to indicate a strong interest. Under the Canada Labour Code, it was 35% of workers. Bill C-525 changed that to require that unions show at least 40% membership support before holding a secret ballot vote and to require a vote even where more than 50% of workers had signed a union membership card.

More important, Bill C-525 also makes it easier for unions to be decertified. It lowers the threshold to trigger a decertification vote from majority support to 40%.

Overall, as stakeholders such as the Canadian Union of Public Employees have pointed out, the card-check model is faster, more efficient and more likely to be free of employer interference than the new method.

In short, Bill C-525 makes it harder for employees to unionize and makes it easier for a union to be decertified. It tips the scales in an unbalanced manner.

Bill C-525 made significant changes to a system that worked. There was a democratic and fair system in place for employees for decades to express their support for a union. A card-check system relies on majority support, a key democratic principle.

The bottom line is that Bill C-377 and Bill C-525 upset the delicate balance between the rights of employers and the rights of employees. The bill put before the House, Bill C-4, seeks to repeal the legislative changes made by these two bills. It seeks to restore the rights of labour organizations in our proud country.

Unifor's national president, Jerry Dias, welcomes Bill C-4. He said, “...we have simply been given back rights that were taken from us...”. Why are these rights so important? Because the rights of labour unions and the workers they represent are also the rights of Canadians. Who are those Canadians? They are carpenters, electricians, plumbers, and cleaners, the people we encounter everyday. They are Canadians who are working hard to put money in their banks and to save for their children's future.

As elected officials, we have a responsibility to protect those rights. Labour unions advocate for decent wages and safe working environments. They play an essential role in maintaining positive labour relations between employers and employees. Sound labour relations protect the rights of Canadian workers and help the middle class grow and prosper.

Let us not allow Bills C-377 and C-525 to continue to diminish and weaken Canada's labour movement. I urge the members of the House to repeal Bill C-377 and Bill C-525 and lend their support for Bill C-4, which would restore a fair and balanced approach to labour relations in Canada.

[Tracey Ramsey, NDP, Essex, ON]

Mr. Speaker, I would like to thank my colleague for her excellent speech, standing up in support of those in the labour movement and recognizing the history of labour and its contributions.

Under the guise of transparency, Bill C-377 puts an onerous reporting burden on unions while raising privacy concerns for Canada's Privacy Commissioner, Jennifer Stoddart. The Canadian Bar Association wrote a letter to the Conservatives pointing out how the bill tramples privacy and constitutional rights. Even the Christian Labour Association of Canada, CLAC, has called on the government to withdraw and redraft the bill because it violates privacy laws and the Charter of Rights and Freedoms.

Why does the member think the previous government and the Conservatives in the House today feel they do not need to respect the transparency that already exists for unions, and why they continue to push on this particular bill?

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Speaker, today I will be splitting my time with the hon. member for Vaughan—Woodbridge.

I am honoured to give my maiden speech on Bill C-4, a bill that would re-establish a productive balance between unions and employers. I represent the riding of Hamilton West—Ancaster—Dundas, where many proud union brothers and sisters reside, work, and prosper together. The building trades, teachers, electricians, labourers, police, steelworkers, carpenters, and many others work to build this prosperous and peaceful city through their ingenuity and stubborn belief in hard work that should be rewarded with fair wages, safe working conditions, and equality of opportunity.

These are the values that I grew up with. Unions were a big part of my life and my family's life for the last two generations. I am the daughter of a proud steelworker. My father, Phil Tassi, was a millwright at Dofasco. It was through his hard work and passionate commitment that my family prospered and that I, with my brothers and sister, were able to build lives founded on security and stability. In fact, my sister, my brothers, my mother, and I all worked in the steel industry.

While Dofasco was never unionized, it benefited from what other unions in Hamilton attained. The hard-won achievements of unionized labour set an example for my father's employer to give its workers comparable rights, safety, and wages. This is but one very personal example of how unions directly and indirectly have improved the lives of Hamiltonians.

When conditions are at their best, unions, employers, and government work together to build safe, prosperous, and stable communities. It is this balance that Bill C-4 seeks to re-establish. This bill sets right what was skewed by Bill C-377 and Bill C-525.

Hamilton is a city whose history is closely connected to the labour movement. It was in Hamilton that the movement for the nine-hour workday in Canada was started. It was in Hamilton in 1920 that Katie McVicar and Mary McNab, who were shoe workers and members of the Knights of Labour, fought for the rights of women to join the labour force and to be respected.

It was in Hamilton in 1935 that steelworkers organized a strike. Their employer did not accede to their demands. However, a greater victory was achieved. The union expanded to include all workers, regardless of skill or nationality. That was progress. These are the footings of the middle class in Hamilton: strong, built of cement, steel and hard work, wrought by the hands of people who believed in themselves and in one another.

Unions have been creating conditions where individual workers can be resourceful, innovative, and contribute to an employer's intellectual capital. That is good for workers and for business.

The Prime Minister has made a commitment to restore a fair and balanced approach to labour relations in this country. This will be a welcome relief from the previous government's approach, where labour and employers were pushed apart by legislation aimed at dividing and separating, rather than creating a healthy balance between worker and employer.

One only needs to look to Hamilton to see how a city can be built up through labour success and ravaged when industry declines. Even former Conservative Senator Hugh Segal criticized Bill C-377. He stated:

This will actually worsen labour relations in Canada, slow economic development, and upend the balance between free collective bargaining, capital investment and return, which are vital to a strong and free mixed-market economy. As a Conservative, I oppose the upending of this balance.

There is no need for Bill C-377. We already have legislation in place to ensure that unions are financially accountable to their members. All of this is referred to in the Canada Labour Code. The needless red tape created by Bill C-377 creates an unfair playing field, where unions could be disadvantaged during collective bargaining. We believe in fairness for both parties during collective bargaining and feel that tilting the game in favour of one party is an affront to the ancient principles of fairness upon which Canadian democracy is founded.

The introduction of Bill C-377 in the House of Commons was an affront to Hamilton's working people. It was a bill designed to solve a problem that did not exist. No one I know in Hamilton West—Ancaster—Dundas has ever told me they are clamouring for the far-reaching and personal information this legislation was designed to uncover.

Why was the last government interested in the private, personal information of union members? The Income Tax Act protects taxpayers from revealing their personal financial information. Yet, Bill C-377 reversed those protections and will force the disclosure of people's personal information to the general public. That is one of the reasons we are repealing this unnecessary and mean-spirited bill.

Unions have an important role to play. This repeal would allow the unions to continue to focus on finding their members work in this challenging economy, rather than focusing on mountains of unnecessary filings to the CRA.

Unions are democratic organizations and they are accountable to their members. If members do not like what unions are doing with their money, those members can vote their leaders out.

In fact, Bill C-377 requires that labour organizations disclose information that no other organization is required to disclose. That is not fair treatment.

There has been some discussion in the House about how other countries in the world require disclosure. Let us consider some of the facts.

I believe one example of France was raised. However, in that country, not only do the unions report but the employers report, too. In the United States, legislation similar to Bill C-377 has existed for a number of years, but one could argue that it has done little to further the cause of transparency and accountability.

Having discussed Bill C-377, I will briefly consider the ramifications of Bill C-525.

Both the Federally Regulated Employers—Transportation and Communications and the Canadian Labour Council have argued that Bill C-525 establishes a dangerous precedent for labour relations law reform in Canada.

Traditionally, in Canada, any amendments to labour relations law have been arrived at through tripartite consultation between employer, labour, and government. This tripartite consultation has been considered essential by stakeholders to the maintenance of a labour-employer balance. Bill C-525 was introduced as a private member's bill, and private members' bills are outside the traditional tripartite process.

The tripartite process encourages balance between labour and employers. However, the previous government chose to use a back door to pass its legislation instead. This demonstrates a clear and utter disregard by the previous government for Canada's democratic tradition in labour relations law.

Bill C-525 is also an anti-union bill. More specifically, by requiring a secret ballot vote, Bill C-525 adds an unnecessary layer to the process of union formation. Bill C-525 makes it more difficult for employees to unionize and easier for a bargaining agent to be decertified.

As I have already said, organized labour has provided stability and security to workers. To impede unionization is to hold workers back by making them fearful of being thrown into precarious working conditions. This makes people focus on the short term. It makes them anxious and tentative, rather than open and confident.

Hamilton and Canada were built by proud, confident workers. I came to Ottawa to represent a city that grew out of the fires of industry, through hard work, sacrifice, and care for each other. When Hamilton was most productive, it was because of labour, employers, and government working to create a safe, stable, and prosperous city, where people could innovate and create from a place of relative security. This collaboration depends on a balance between labour and employers, which was upset by the ideology of an anti-union agenda of the previous government.

Bill C-4 would be a positive step toward righting the balance between labour and employers.

[Erin Weir, NDP, Regina—Lewvan, SK]

Mr. Speaker, the member for Dauphin—Swan River—Neepawa suggests that the tax deductibility of union dues is some sort of special privilege. However, we afford exactly the same tax treatment to all employment expenses.

Let us imagine that the deduction of dues had something to do with Bill C-377. I wonder if the hon. member could explain to us why this legislation was only imposed on trade unions and not applied to medical associations, bar associations, and other professional associations whose dues are also tax deductible.

[Robert Sopuck, Conservative, Dauphin—Swan River—Neepawa, MB]

Mr. Speaker, it is an honour to follow my esteemed colleague regarding the Liberals' intent to repeal Bill C-377 and Bill C-525.

Both of these bills were about transparency. As my colleague talked about earlier, the first bills we introduced as a government were about increasing transparency, and one of the first acts of the Liberal government is to introduce bills to reduce transparency.

Bill C-377 had an important purpose. The purpose was to extend the principle of public disclosure to a group of institutions that enjoy substantial public benefit: labour organizations. This is key. Public disclosure would increase the confidence of Canadians that unions spend their money wisely and effectively.

Regarding Bill C-525, which dealt with the issue of voting rights, it replaced a system called “card check”. The card-check system allows for a workplace to be unionized without allowing all employees to express their opinions. In fact, the unionization of a workplace could occur without a significant portion of the bargaining unit having been made aware of it.

Again, both of these bills dealt with improving transparency. In our strong view, Canadian union workers have the right to know how their mandatory union dues are spent. That is why our government passed Bill C-377 and Bill C-525.

Repealing these laws sends a very clear message: the Liberal government cares more about thanking union bosses, who did everything in their power to help them get elected, rather than the thousands of hard-working union members whose dues were spent without consultation. Union leaders need to be held accountable and tell their members and the public how their tax-advantaged income is spent.

The Conservative Party will continue to support union transparency and stand up for union workers. As I have said in a couple of my other speeches, it is becoming quite clear that the only party that cares about Canadian workers and workers' families is the Conservative Party of Canada.

Even some labour organizations are very strongly in favour of our bill. The Christian Labour Association, Dick Heinen, the executive director, in February 2014, said:

Now fundamentally, CLAC believes in competition in the labour relations environment in Canada. We think that workers should have the right and be free to make their own choices when it comes to which union represents them or whether they want to be represented by a union at all.

As well, John Farrell, executive director of the Federally Regulated Employers, Transportation and Communications, in his testimony to the Senate committee, said:

FETCO members prefer a secret ballot vote to a card-check system for the purpose of determining if a union is to become a certified bargaining agent for employees. A secret ballot vote is the essence of a true democratic choice and is entirely consistent with Canadian democratic principles. It allows each and every employee to express their true wishes without undue influence or disclosure of how they cast their ballot. This is the mechanism that is used for the electoral process in Canada, and it is the fairest process.

It is no coincidence that the public sector union bosses worked hard to get the Liberal government elected, and now, quite frankly, it is payback time. The first thing that the Liberal government is doing is repealing these two very important bills, Bill C-377 and Bill C-525.

In addition, the President of the Treasury Board made a point of announcing that he is restoring the sick leave benefit to the public sector. That is a cost of $900 million a year. That is $900 million that is not available for health care, the environment, agriculture, and infrastructure. However, again we can see it is definitely payback time. Now we have a government that is beholden to public sector union bosses.

Quite interestingly, what I am seeing in the House and in government is a merging of the ideology of the Liberals and the NDP. We have the champagne socialists riding with the limousine Liberals. Quite frankly, the NDP has not changed. It is still the party of bad ideas and toxic policies. What is changing is the Liberal Party. The Liberal Party is moving very quickly to the left, and their alliance with public sector union bosses against the interest of Canadians in general is proof of that.

I actually would like to call up a committee on the status of endangered wildlife in Canada so that we can list a species called the “blue Liberal”, which is now in danger. They are the Liberals who actually cared about business. They were the prominent blue Liberals who were talking in favour of pipelines, economic development, and free trade. However, they are being completely ignored. I think the Species at Risk Act needs to look at the blue Liberal.

Given that it is payback time, let us imagine what is going on in the negotiation room between the government and the public sector unions. Do members not think for a minute that the public sector unions do not point their finger at the relevant Liberal negotiators and say, “Look, we got you elected and you better deliver”? The Liberal Party is bargaining with the same group that helped bring it into power.

The President of the Treasury Board is making a sham trying to talk tough, but we know what will really go on behind closed doors. These negotiations are fundamentally flawed. There is another word I could use, but it is quite unparliamentary. The negotiations will be all about how much they can fleece the taxpayer.

Unfortunately, the public sector unions have become an entity unto themselves. We see the evolution of public sector unions as powerful political entities that in some cases can determine who forms a government. The public sector unions will always remind the Liberals who got them elected, and the public interest itself will be left behind.

This is bad for democracy and it is bad for our country. The public service is supposed to be neutral and carry out the wishes of the duly elected government of the day, but the trends I am seeing make me very uneasy.

Again, I want to reiterate that as this session evolves and the legislation evolves, it is becoming quite clear that the Conservative Party of Canada is the only party that stands up for the workers of Canada. We defend the natural resource industries. We defend the oil sands. We encourage the growth of pipelines. We are the only people who care about working families in this country.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I was very active in the debate surrounding Bill C-377 and Bill C-525, which were a direct attack on how unions operate.

When we debated the issue, the Conservative government of the day argued that it had the right to interfere in this matter because union dues were tax deductible and therefore some degree of accountability was needed. I also recall that professional associations, which also collect dues that are tax deductible, were not included in the bill.

It was therefore abundantly clear to me that this was a direct attack on how unions operate, particularly regarding the issue of unions having to show their accounting records. Obviously, this gives negotiators on the management side an advantage, since they would then be familiar with the financial position of the unions with which they are negotiating.

Why will the Conservative members not just admit that those two bills were a deliberate attack on unions in order to undermine their ability to stand up to the government, which was extremely harmful over the past four years?