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

This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.

This bill was previously introduced in the 41st Parliament, 1st Session.

Sponsor

Russ Hiebert  Conservative

Introduced as a private member’s bill.

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Dec. 12, 2012 Passed That the Bill be now read a third time and do pass.
Dec. 12, 2012 Passed That Bill C-377, An Act to amend the Income Tax Act (requirements for labour organizations), be concurred in at report stage with further amendments.
Dec. 12, 2012 Passed That Bill C-377, in Clause 1, be amended by : (a) replacing lines 1 to 7 on page 2 with the following: “(2) Every labour organization and every labour trust shall, by way of electronic filing (as defined in subsection 150.1(1)) and within six months from the end of each fiscal period, file with the Minister an information return for the year, in prescribed form and containing prescribed information. (3) The information return referred to” (b) replacing lines 26 to 31 on page 2 with the following: “assets — with all transactions and all disbursements, the cumulative value of which in respect of a particular payer or payee for the period is greater than $5,000, shown as separate entries along with the name of the payer and payee and setting out for each of those transactions and disbursements its purpose and description and the specific amount that has been paid or received, or that is to be paid or received, and including” (c) replacing lines 33 to 35 on page 2 with the following: “(ii) a statement of loans exceeding $250 receivable from officers, employees, members or businesses,” (d) replacing line 4 on page 3 with the following: “to officers, directors and trustees, to employees with compensation over $100,000 and to persons in positions of authority who would reasonably be expected to have, in the ordinary course, access to material information about the business, operations, assets or revenue of the labour organization or labour trust, including” (e) replacing lines 11 to 14 on page 3 with the following: “consideration provided, (vii.1) a statement with a reasonable estimate of the percentage of time dedicated by persons referred to in subparagraph (vii) to each of political activities, lobbying activities and other non-labour relations activities, (viii) a statement with the aggregate amount of disbursements to” (f) replacing lines 22 to 25 on page 3 with the following: “provided, “(viii.1) a statement with a reasonable estimate of the percentage of time dedicated by persons referred to in subparagraph (viii) to each of political activities, lobbying activities and other non-labour relations activities, (ix) a statement with the aggregate amount of disbursements on” (g) replacing lines 33 to 40 on page 3 with the following: “(xiii) a statement with the aggregate amount of disbursements on administration, (xiv) a statement with the aggregate amount of disbursements on general overhead, (xv) a statement with the aggregate amount of disbursements on organizing activities, (xvi) statement with the aggregate amount of disbursements on collective bargaining activities,” (h) replacing lines 1 and 2 on page 4 with the following: “(xix) a statement with the aggregate amount of disbursements on legal activities, excluding information protected by solicitor-client privilege, (xix.1) a statement of disbursements (other than disbursements included in a statement referred to in any of subparagraphs (iv), (vii), (viii) and (ix) to (xix)) on all activities other than those that are primarily carried on for members of the labour organization or labour trust, excluding information protected by solicitor-client privilege, and” (i) replacing lines 4 to 13 on page 4 with the following: “( c) a statement for the fiscal period listing the sales of investments and fixed assets to, and the purchases of investments and fixed assets from, non-arm’s length parties, including for each property a description of the property and its cost, book value and sale price; ( d) a statement for the fiscal period listing all other transactions with non-arm’s length parties; and ( e) in the case of a labour organization or” (j) replacing line 29 on page 4 with the following: “contained in the information return” (k) replacing lines 33 to 35 on page 4 with the following: “Internet site in a searchable format. (5) For greater certainty, a disbursement referred to in any of subparagraphs (3)( b)(viii) to (xx) includes a disbursement made through a third party or contractor. (6) Subsection (2) does not apply to ( a) a labour-sponsored venture capital corporation; and ( b) a labour trust the activities and operations of which are limited exclusively to the administration, management or investments of a deferred profit sharing plan, an employee life and health trust, a group sickness or accident insurance plan, a group term life insurance policy, a private health services plan, a registered pension plan or a supplementary unemployment benefit plan. (7) Subsection (3) does not require the reporting of ( a) information, regarding disbursements and transactions of, or the value of investments held by, a labour trust (other than a trust described in paragraph (6)(b)), that is limited exclusively to the direct expenditures or transactions by the labour trust in respect of a plan, trust or policy described in paragraph (6)(b); ( b) the address of a person in respect of whom paragraph (3)(b) applies; or ( c) the name of a payer or payee in respect of a statement referred to in any of subparagraphs (3)(b)(i), (v), (ix), (xiii) to (xvi) and (xix).”
Dec. 12, 2012 Failed That Bill C-377, in Clause 1, be amended by replacing line 20 on page 1 with the following: “labour organization is a signatory and also includes activities associated with advice, commentary or advocacy provided by an employer organization in respect of labour relations activities, collective bargaining, employment standards, occupational health and safety, the regulation of trades, apprenticeship, the organization of work or any other workplace matter.”
March 14, 2012 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.

Canada Labour CodeGovernment Orders

February 5th, 2016 / 10:10 a.m.
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Liberal

Dan Vandal Liberal Saint Boniface—Saint Vital, MB

Mr. Speaker, quite clearly, Bill C-377 is counterproductive to a positive working relationship between employers and employees. It creates unnecessary red tape for labour organizations and labour trusts. Legislation is already in place to ensure that unions are financially accountable to their members. Therefore, I am wondering what the real reason was for the government at the time bringing forward this unfair legislation that brings extra red tape.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 6:35 p.m.
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Conservative

John Barlow Conservative Foothills, AB

Mr. Speaker, I want to ask my colleague a question regarding consultation on Bill C-4.

The member talked about how none of the consultation happened before with Bill C-377 and Bill C-525. However, we did extensive consultation. We had many union members and union leaders come in at committee and Senate stage to talk about this.

Does the member not understand that some of the polling we did with Leger and Nanos showed that more than 84% of union members were in support of the legislation we put forward.

Did the Liberals do any consultation with actual union members, or was it just with union leadership?

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 6:25 p.m.
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Liberal

Darrell Samson Liberal Sackville—Preston—Chezzetcook, NS

Mr. Speaker, I am extremely pleased to stand today in support of Bill C-4. Bill C-4 removes many of the barriers and administrative burdens on labour groups that the Conservative government put in place.

I would like to begin by saying that unions have played an important role in Canada for a very long time. It is that partnership that has contributed to the success of this country and our economy. It is important to mention that it has also improved the fundamental rights of individuals in the workplace. That is essential and should be noted.

The contributions of unions have been very large, but I would like to share a few points with the House tonight.

Unions have played a major role in establishing an eight-hour workday, a five-day work week, parental benefits, which are essential as well, and health and safety standards. There are many areas where the unions have contributed to the success of those changes.

Labour unions have greatly contributed to the balance between the rights of workers and the ability of employers to run efficient operations and businesses.

In my past life, I spent 11 years as the superintendent of the French school board. During that time, I had many opportunities to work closely with unions, unions that were our partners and our workers. I can assure members that it was a successful experience with successful negotiations. The employees were able to benefit from many of the things we negotiated, but the school board was also able to gain from the negotiations. It was a partnership that was extremely important.

Unfortunately, Bill C-377 has tipped the scales in favour of management by forcing the public disclosure of information, which in most cases, is not required for private corporations.

It is important to mention that Bill C-4 is in no way intended to cut transparency.

Bill C-377 is redundant legislation.

If we look at the province of Nova Scotia, the Trade Union Act has provisions that allow all union members to access copies of any financial statement free of charge. The result of this transparency measure is that no complaints have been filed in Nova Scotia over the last five years on this type of issue.

I must also mention that the province of Nova Scotia has noticed the federal government's interference in this area, which is traditionally a provincial jurisdiction. At the May 7, 2015 meeting of the Senate committee on Legal and Constitutional Affairs, the Nova Scotia Minister of Labour and Advanced Education, Hon. Kelly Regan, stated:

governments all across Canada are doing what they can to eliminate regulatory duplication and red tape....It's hard to understand why the federal government would enter into this area of provincial jurisdiction.

I agree fully with the minister.

It is even more surprising to hear the opposition say that most people were in favour. B.C., Manitoba, Ontario, Quebec, New Brunswick, P.E.I., and of course, Nova Scotia all opposed Bill C-377 and Bill C-525.

I would now like to talk a little bit about Bill C-525. This Liberal government is proud to be able to undo the damage done by the Conservative government's Bill C-525. That bill is forcing workers who want to create a new union to obtain the signatures of 40% of its members and have a secret ballot on the issue. Obviously, the Conservative government's strategy was to add layers to the process for creating a new union.

Our government firmly believes that we should not discourage people from participating in a union. That is why we want to restore the former system under which workers only needed the signatures of 50% plus one.

As with so many of its initiatives, our government is working hard to collaborate with all regions of the country, with all sectors of the economy, to bring real change for all Canadians.

Our government has chosen to put its trust in this country's labour organizations and the workers they represent. We must ensure that they are not treated unfairly at the negotiating table. This represents a change of tone and attitude compared to that of the previous government. It is a tone where we treat not only unions and their workers with respect but also our indigenous communities, veterans, families, and democratic institutions.

I am proud to provide my full support to this bill and I congratulate the Minister of Employment, Workforce Development and Labour for her leadership in bringing this legislation to the House.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 6:20 p.m.
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Liberal

Larry Bagnell Liberal Yukon, YT

Mr. Speaker, the member brought up one of the major points about this bill, which is the case with some other bills too that I would love to talk about, and that is the process as opposed to just the content. I have certain personal qualms sometimes with how private members' bills do not get the same rigorous analysis by departments, the same type of consultation, and the same type of constitutional review as other bills. A private member's bill results in a law, the same as any other bill, so why would it not get the same type of thorough treatment?

Personally, I would like to reform the system to ensure that all bills are looked at with the same wisdom by the technocrats, the people who have spent their lives working on the technical details, so they can provide technical information, some of which the member mentioned, to parliamentarians. Of course, the bottom line is that parliamentarians ultimately have to and should make the final decision based on a comprehensive technical review to ensure the bill is under the right jurisdiction, makes technical sense and does not offend the Constitution. As we know, Bill C-377 is under a constitutional challenge.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 6:15 p.m.
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Liberal

Larry Bagnell Liberal Yukon, YT

Mr. Speaker, I will be splitting my time with the great member for Sackville—Preston—Chezzetcook.

I am very pleased to participate in the debate on Bill C-4, the proposed repeal of two labour bills passed by the previous government. This is an important piece of legislation, and I encourage my fellow members to support its passage in the House.

Some do not agree with our moving to repeal these bills, which is fair enough. However, suggesting the government has a hidden agenda goes too far. During the election campaign, the Prime Minister publicly made a commitment to repeal both these pieces of legislation. Canadians went to the polls and they expect us to keep our commitments. It was also clearly spelled out and made public in her mandate after the minister was sworn in as Minister of Employment, Workforce Development and Labour. This commitment was restated by the Prime Minister when he spoke to the Canadian Labour Congress in November. Far from being part of some hidden agenda, the government's intention to repeal these bills was made very clear, stated often, and its reasons for doing so were repeated frequently.

Let us start with the most important reason. Repealing these bills would help restore a fair and balanced approach to labour relations in Canada. While both of these bills pose a number of problems, today I am going to focus on the legislative amendments made by Bill C-525. Bill C-525 changed the union certification and decertification processes under three federal labour relations statutes: the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, and the Public Service Labour Relations Act.

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

Bill C-525 changed that to require that unions show at least 40% membership support before holding a secret ballot, and to require a vote even where more than 50% of voters had signed union member cards. It also made it easier for unions to be decertified by lowering the threshold to trigger a decertification vote to 40%, compared to majority support, which was previously required. Essentially, Bill C-525 made it more difficult for Canadian workers to unionize. This is not good for our economy and it is not good for Canadians. Unions help to address inequality by helping to ensure fair wages. They help protect worker safety and prevent discrimination in the workplace. They also help employers because a fair workplace is a more productive workplace, and more productive workplaces help to grow our economy and help strengthen our middle class.

What was presented in Bill C-525 was essentially a solution in search of a problem. There were no great rallies on Parliament Hill or even in the boardrooms demanding that we change a union certification system that had worked successfully for many years. The card check system, whereby a union is certified by demonstrating majority support through signed union cards, has been used successfully for many years in the federal jurisdiction and in several provinces. A number of unions, like Unifor and the Airline Pilots Association, argued that it is fast and efficient and much more likely to be free of employer interference than the mandatory secret ballot system brought in under Bill C-525. The card check system is not undemocratic. It required a majority support through signed cards. The Canada Industrial Relations Board has strong measures in place to ensure the process of signed cards is fair.

It should also be noted that representatives from both sides of the bargaining table were highly critical of how the previous government brought in these changes. Both bills were brought in as private members' bills, and without consultation with employers, unions, or other levels of government.

Many argue that it set a very dangerous precedent for future labour reform. They are right. We believe that fair and balanced labour policies developed through real and meaningful consultation with unions, employers, stakeholders, the provinces and territories, and the Canadian public are essential for harmonious labour relations.

Bill C-377 also presents problems that could have been averted with proper consultation. We have heard my colleagues talk about that in great detail. Among other things, it has the potential to seriously disrupt collective bargaining processes. For example, detailed information about unions, including information on union strike funds, would be available to employers. It seems like a blatant attempt to make things harder for unions. We recognize the essential role that unions play in protecting the rights of workers and helping the middle class to grow and prosper.

It is clear that the legislative amendments enacted through these bills must be repealed in order to restore fairness and balance in our approach to labour relations in Canada. To do less would be a disservice to workers, employers, and the economy.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 6:10 p.m.
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Liberal

Bob Nault Liberal Kenora, ON

Mr. Speaker, in the discussions the member had with his colleagues when they passed Bill C-377, was he aware that seven provinces voiced opposition to this bill. They had concerns with encroachment on their jurisdiction as it related to labour issues?

Why did the previous federal government see fit to interfere in provincial jurisdictions as it related to labour relations, and put labour relations and the whole balance of labour relations in jeopardy in the provinces of the country when it was not a federation jurisdiction at all?

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 6:05 p.m.
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Liberal

Nathaniel Erskine-Smith Liberal Beaches—East York, ON

Mr. Speaker, I do not think anyone would accuse former Conservative Senator Hugh Segal of being a big union boss or supporting big union bosses. He identified a number of problems with Bill C-377, including the unconstitutionality of the bill, the constitutionality question by the Canadian Bar Association, the invasion of privacy blatant in the bill, and the creation of inconsistent disclosure obligations between trade unions and government employers and corporations, both private and public.

I do not ask my friend to address all of these flaws, but could he at least address one of them?

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 5:55 p.m.
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Conservative

Blaine Calkins Conservative Red Deer—Lacombe, AB

Mr. Speaker, the hon. member does not seem to appreciate the fact that I am talking about my private member's Bill C-525. Bill C-377 was a transparency mechanism that was brought in by one of my colleagues. He would be better served asking my colleague about that, but I support the notion of transparency.

Taxpayers subsidize union dues being paid to the tune of $500 million a year. That is exactly the budget of running the entire Parliament and democracy of our country. That is a lot of money and union members have a right to know where that money is being spent.

I do not think there was anything wrong with a $5,000 threshold. It is a mandatory tax if one is a union member. Union members have to pay it. That is the deal and that is fine. I do not disagree with that deal. I think union members ought to know where it goes.

After all our celebrations on democratic rights for women getting the right to vote in Manitoba, and references to Irene Parlby, one of the Famous Five, who is from my riding and came from Alix, Alberta, is the hon. member going to wear as a badge of honour the fact that when he passes this legislation proposed by the Liberals, he is going to take away the right to vote of every woman worker in this country?

That is the badge that he and the Liberal Party are going to wear because every woman, who is part of a union or not part of a union, has just lost the right to vote. I would be ashamed of that record.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 5:40 p.m.
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Conservative

Blaine Calkins Conservative Red Deer—Lacombe, AB

Mr. Speaker, I am honoured to rise in my place to speak to this today. I will be splitting my time with the member for Central Okanagan—Similkameen—Nicola.

First, I want to thank everyone in the previous Parliament who passed my private member's Bill C-525. I am very disappointed at how this debate has been framed by members in the Liberal Party, the NDP, and others.

My bill is not an anti-union bill. It has been long established that unions have the right to exist and that Canadians have a charter right to associate and affiliate with one another. That is not what is in question here.

My bill is not anti-union. My bill is pro-democracy, and it worked in part with Bill C-377, which is pro-transparency. Those were the issues.

My bill came about as a result of consultations with my constituents. Every time we hear a Liberal MP or an NDP MP talk about consultations, the only people they are talking to are union leaders, or big business.

The Conservative Party actually talks to everyday ordinary Canadians. We know we are on the right side on this issue. We know we are right because polling information clearly indicates where Canadians are and where workers are, in particular where union workers are on this issue.

I already have had a number of calls from constituents and card carrying union members who are disappointed that it is a priority of the Liberal government to undo what we were able to do in the last Parliament, which was bestow a mandatory secret ballot in the process of certifying or decertifying a union.

How can it be called democracy if we take away the right to a secret ballot? It has been established long ago that the hallmark of any modern democracy is a secret ballot vote. Would members of Parliament feel that they were here legitimately if they were able to go door knocking and stand on people's doorsteps, make their pitch and say that they happened to have a ballot in their hands, and a couple of their friends with them, and encourage people to sign those ballots and vote for them. That is exactly what the card check process is.

I have been a member of a union, and my union served me well in times when I needed it. However, I was also in the hall where I heard my union representatives use these kinds of tactics, tactics that we hear of all the time, threats and intimidation, boisterousness, the louder they spoke, the more forceful their point was. It does not matter how right they were, it just mattered how loud they were. It was not necessary. I did not need to be convinced. I was going to support whatever we decided to do as a group. I did not need to be intimidated or beat into line on these issues.

I have also sat across the table as a municipal councillor negotiating on behalf of taxpayers for a public union. I saw through those secret negotiations, much like the ones the NDP always claimed, when we were doing trade negotiations. Every negotiation was done this way. I never heard an NDP member of Parliament say that union negotiations should be done in front of the entire world for everybody to see. Those members think TPP should be done that way, but they do not think a union negotiation should be done that way.

Notwithstanding that hypocrisy, I have been there. I have seen who was looking after who in these negotiations. I saw union leaders ensure that whatever the contract was, if it started to go bad for the union people, the people at the very top, the people with the seniority, not the new people, not the new workers, not the most vulnerable workers in the union, the ones who had the least seniority, but the ones who had the most seniority, the people with the most seniority looked after themselves. They were the ones who rose up to the top of the union leadership. The ones with the least seniority were vulnerable. Whatever negotiations happened, the people at the top made sure they took care of themselves first.

Where would that union member's right be to hold his or her union leaders to account if they were not actually representing even a junior member of the union to the best of their ability? There was no way because there was no mandatory secret ballot vote to determine who would represent those people at the collective bargaining table. This is absolutely fundamental.

We hear the other side complaining about a number of these issues, that Bill C-525 is anti-union, that it is creating disparity. Bill C-525 actually created the same process for creating a union as decertifying a union. Yet, the minister right now claims that they are going back to a more balanced approach. In her opinion, a more balanced approach would make it far easier for a union to be created and far harder for a union to be decertified. If it is the same way going in as it is going out, I do not understand how that tips the scales. That makes the scales level.

As a union leader, would a person not want to have his or her presence as a collective bargaining agent on behalf of the employees ratified by a secret ballot vote? Would he or she not like to carry that forward in confidence, knowing full well that he or she has 50% plus one of the membership of the union supporting him or her to negotiate a deal that is in their best interests?

The way it worked before my bill was passed was with a card check system. That is fine. A card check system is still used. It is just used to determine the threshold for when a vote should be called. That is fine. We must have some way of gauging interest.

However, we can do a card check under any guise. We can take a card to someone who is neither fluent in English nor French and tell them that they needed to sign this card to receive their pay and benefits. So, they sign a card. They do not know what they are signing. All of a sudden, there is 50% plus one of the members of the union. It was automatic. It is 50% plus one. It was automatic.

Is this not problematic? Does anyone not see an issue with this? It was open to abuse. It was open to intimidation.

What is wrong with a secret ballot?

I do not know whom the members in the Liberal Party consulted. They had closed-door meetings shortly after the election, but every union leader who came before the human resources committee during the deliberations on Bill C-525 had nothing but good things to say about the secret ballot.

The Christian Labour Association of Canada said that “CLAC supports efforts to...strengthen the democratic rights of workers” and stated that it looked forward to further speaking to the legislation when the Senate dealt with it. The CLAC representative repeated, “Yes, we are in favour of secret ballots.” That is a union leader who said that.

Robyn Benson of the Public Service Alliance of Canada, the largest public service union in Canada, said:

Contrary to what you may have heard, PSAC has no issue with voting by secret ballot. We do it regularly to elect our officers, ratify collective agreements, and vote for strike actions, as examples.

Really? Robyn Benson said that in front of the committee. What is the problem? What is the issue? They want to be legitimized. They want to have that process legitimized.

FETCO also agreed with it. Mr. Farrell from FETCO said:

I believe the major disadvantage is that there's no clear evidence that all of the potential union members have had an opportunity to seriously consider the question of a unionization and to express their opinion behind the screen of a ballot box in a secret ballot vote.

What Mr. Farrell was actually saying and responding to there was a question that is very fundamental. If they do a card check system they actually would not even have to check with all the members of the bargaining unit. They could just go until they got 50% plus one, wipe their hands, call it a day. They did not even check with everyone. People can show up the next day at work never knowing that a union drive had even taken place and be an automatic member of the union.

How is that fair? How is that a democratic process? People do not even have an opportunity to discuss it.

I have a lot more examples. There are numerous polls by Leger and Nanos and ask the question, “Should Canadians have the right to a secret ballot before they decide to join a union or not? What is their best interest?” In every case, as confirmed by the testimony of union leaders themselves, Canadians overwhelmingly, over 70%, and sometimes over 80%, say, “Yes, this is true”. And when they asked an actual union member of someone who was in a union, that number even got higher, sometimes up into the high 80s percentages.

It makes absolutely no sense. There is not a problem here that needs to be undone, contrary to what these folks over there want Canadians to believe.

We on this side of the House, the Conservative Party, and only the Conservative Party, stand up for transparency and for accountability for workers.

If anyone in Canada has any doubts who is on the side of the everyday working man and woman in this country, it is Conservative members of Parliament.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 5:40 p.m.
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Liberal

Julie Dzerowicz Liberal Davenport, ON

Mr. Speaker, we very much believe that for Canada to have a strong middle class and a strong economy, we need to have a strong labour movement. We believe that unions play an important role in protecting the rights of Canadian workers and helping unionized workers to access benefits and pensions in addition to what I have just mentioned, helping the middle class grow and prosper.

This is why we are very much committing to repealing Bill C-377 and Bill C-525.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 5:40 p.m.
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Liberal

Julie Dzerowicz Liberal Davenport, ON

Mr. Speaker, part of the reason we are repealing this bill is that we believe that there was a huge issue around the process.

The bill was highly discriminatory and deeply ideological. For it to go through a normal process, it has to be open, transparent, and consultative. The process of a private member's bill did not allow for the intensity of dialogue in consultation with the broad array of stakeholders, as if we went through a normal process.

That is why we are repealing both Bill C-377 and Bill C-525.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 5:40 p.m.
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Liberal

Julie Dzerowicz Liberal Davenport, ON

Mr. Speaker, I will be speaking to Bill C-4 today. The Government of Canada believes that we should be treating our unions in a fair and balanced way. This is the principle behind repealing Bill C-377 and Bill C-525. The other reason we are also repealing this is the whole process. If there are issues around workers or unions or just human resource policy in Canada, the best way for us to go about dealing with it is in an open, transparent, and consultative way.

To me, that is the way we should be dealing with any of the issues, both now and moving forward.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 5:25 p.m.
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Liberal

Julie Dzerowicz Liberal Davenport, ON

Madam Speaker, I will follow the wonderful example of the hon. member for Kenora and start by giving members a bit about my background and some context.

I first want to mention that before I became an MP, I was privileged to work as a director of a large corporation. I worked for big business and was very proud to do so.

I also come from a family where my father worked for Canada Post for almost 30 years and was part of the union there. The only reason my mother does not live in poverty at the moment is that we very much benefit from his ongoing pension. The reason I mention this is that I believe we should treat all of our partners in the economy in a fair and balanced way, whether big business or unions. This is very much the principle that is behind the bill that I will be speaking to today, Bill C-4.

I am the very proud member of Parliament for Davenport, which is a riding in downtown west Toronto. We have a number of union members there, whether in the construction and labour trades, such as painters, carpenters, or from the public sector or Canada Post. There are many other unions that I have not mentioned. However, the point I want to make is that we have a lot of union members who want a fair and balanced federal labour policy, as do all Canadians. That is what we are trying to do with Bill C-4.

I welcome the opportunity to speak in support of Bill C-4, which aims to repeal the legislative changes made by Bill C-377 and Bill C-525. I would also invite all members of the House to support this important bill.

As mentioned in my introduction, in the broadest of strokes, Bill C-4 aims to restore a fair and balanced approach to labour relations in Canada. Because this government has promised Canadians that we will do things differently from the start, the words “fairness" and “balance" resonate with me. We believe that how we do things is just as important as what we do. The laws that throw a wrench into positive working relationships between government and unions, between employers and employees, and between different levels of government do not help anyone. Negative and contentious labour relations are destructive. They gnaw away at the foundation of a structure until it can no longer stand. However, it is that structure that supports workers, employers, and our economy as a whole. Therefore, we need that structure to be strong.

My colleague the Minister of Labour has taken members through some of the finer points of Bill C-377 and Bill C-525. I would like to use my time today to explain the impact these bills have on unions and workers and how they and in turn all Canadians would benefit from the repeal of the legislative changes made by Bill C-377 and Bill C-525.

I will begin by commenting on Bill C-377. Members should consider the fact that this bill forces labour organizations and labour trusts to provide very detailed financial and other information to the Canada Revenue Agency, such as salaries and time spent working on political or lobbying activities.

The bill also requires disclosure of all disbursements greater than $5,000 by unions, including names and addresses of anyone whose goods or services are purchased. There are a lot of other data requirements, which I will not go into. However, the key point is that the bill requires information that no other organization is required to provide, be it a public, private, non-profit, or charitable organization, or even a political party. To some this may not seem entirely unreasonable at first glance. However, if we dig a little deeper we would find that it could have serious and substantial ramifications.

First, it creates an extra level of unnecessary red tape, which could be particularly problematic for smaller organizations with fewer resources at their disposal. The Canada Revenue Agency would share that burden. It would have to develop new and expensive IT systems and other administrative systems to implement the bill. That is an unnecessary cost that would fall to Canadians. It is unnecessary because we already have legislation in place to ensure that unions are financially accountable to their members, as we heard today during the earlier debate. All of this is referred to in the Canada Labour Code.

Furthermore, similar accountability measures have been put in place by almost every province. Bill C-377 would impose a large financial and administrative burden on labour organizations, labour trusts, and government bodies, among others, for information that is not required from other organizations. As though that were not enough, if these organizations do not report on time, they must pay a fine of $1,000 for every day they are late, up to a maximum of $25,000.

Fortunately, my colleague, the Minister of National Revenue, took all the necessary steps to waive reporting for the time being. However, we know that this is a temporary solution since the waiver only applies to the 2016 fiscal period. In addition to the administrative burden being significant and unjust overall, the effect that the reporting requirements would have on the collective bargaining process would also give an unfair advantage to employers at the bargaining table. For example, detailed information about union strike funds would be available to employers, which means that employers would be able to calculate how long union members might be able to stay off the job in a labour dispute. If that is not uneven footing, I do not know what is.

It is clear that Bill C-377 is unnecessary and discriminatory. It clearly disadvantages unions during the collective bargaining process. At the root of it, I believe it is an attempt to make things harder for unions and to drive a wedge between employer and employee relations in Canada.

This brings me to Bill C-525. This bill made changes to the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, and the Public Service Labour Relations Act that affect how unions are certified and decertified. It makes it harder for unions to be certified as collective bargaining agents and easier for a bargaining agent to be decertified. The changes mean the process is more susceptible to employer interference and makes unionization more difficult.

Bill C-525 is not just problematic for unions but imposes some serious burdens on others as well. For example, there are real implications for bodies such as the Canada Industrial Relations Board, as well as the Public Service Labour Relations and Employment Board. Both boards are responsible for the full cost and logistical responsibilities involved in holding representation votes. Under these changes, the Canada Industrial Relations Board would be required to hold a vote to certify a union not just when less than a majority of workers have signed union cards, but would need to do so in all cases. This would mean a fivefold increase in the board's workload.

These bills do not represent a positive contribution to labour relations in Canada. In fact, they cause real harm. It is no surprise that when policies are developed without proper consultation, as was the case with both of these bills, they often end up causing more harm than good. Liberals believe in reforming labour policies through meaningful engagement with unions, employers, stakeholders, provinces and territories, and the Canadian public. It is the only way to ensure a fair and balanced approach to labour relations in Canada. As we have said before, sound labour relations is essential for protecting the rights of Canadian workers and helping the middle class grow and prosper. It is also the necessary foundation of a system where both employers and unions play valuable roles in ensuring that workers receive decent wages and are treated fairly.

I urge all of my colleagues in the House to support Bill C-4 and bring back the fair and balanced labour relations approach all Canadians want and deserve.

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 5:05 p.m.
See context

Conservative

Erin O'Toole Conservative Durham, ON

Madam Speaker, at times there are speeches in this place that are passionate but are also bordering on absurd. I heard terms in the member's speech of “destruction”, “dismantling of rights”, but she did not go into the specifics of the content of those bills.

Bill C-525 is a secret ballot. Is that a destructive right? Canadians have enjoyed that since 1874. That is a right.

The second bill, Bill C-377, deals with disclosure. The Access to Information Act was brought to the House in 1983 by Pierre Trudeau. The member's province had the same legislation in 1991. Politicians on all levels expect, and it is on my website, if people pay taxes or anything by compulsion like union dues, they should be able to know easily where it goes. This goes for charities. The member used to run the United Way. I can check what it spent online. These are reasonable measures and it is 2016.

Why is the only section of Canadian society that is resisting disclosure the labour movement?

Canada Labour CodeGovernment Orders

February 3rd, 2016 / 4:45 p.m.
See context

NDP

Sheri Benson NDP Saskatoon West, SK

Madam Speaker, that will be a hard act to follow, but I think I will be able to provide the House with some more content, and perhaps clarification on some facts.

I would like to thank the hard-working Canadians in Saskatoon West who voted me to be their voice in the House of Commons. Today especially, I feel it is important and I acknowledge their support, because it is important to remind me of who I am here to serve and why. It is also important that all of us here remember exactly who is affected, positively or negatively, by the decisions we make each and every day. This is a responsibility I do not take lightly.

Many of the individuals in my riding work part time or contract positions. The majority of them work in the retail and hospitality sector. Quite a few of my constituents work in unionized workplaces. Others have been impacted by the slowdown in the resource sector. Some own businesses and have employees of their own. A great number of my constituents are new Canadians, immigrants or refugees, working two or three casual or part-time jobs, trying to balance a family, a new country, a new language, and an unfamiliar culture. Every one of these workers deserves to be protected.

With this in mind, Bill C-4 is beyond partisan politics. It is about the individuals who brought us here and about making things better for the people we all represent. That is why I support the bill. I support it as a person who cares about the rights and well-being of my constituents and my fellow Canadians.

Bill C-4 is a small step forward toward a return to recognizing and respecting the rights of the hard-working individuals, men and women, who make up our country. It is not hard for me as a member of the NDP caucus to acknowledge the support for Bill C-4. I guess it will not come as a surprise to anyone that our party supports the bill.

However, it should come as a surprise to all Canadians that the government is having to, with no small amount of shame I hope, return to the people of Canada their hard-earned rights, their constitutional rights, their right to privacy, their rights of freedom of association, and freedom of speech, rights that took decades to achieve. As such, today is a day of mixed emotions.

On one hand, we are happy to see critical rights restored to hard-working Canadians. On the other hand, we worry about the erosion of workers' rights that took place under the previous government. Today, we ask the current government to be vigilant in restoring each and every one of the rights stolen from the Canadian people. We also ask that it update parts of the Canada Labour Code that are about 60 years out of date.

A great way to help rectify that problem would be to immediately act on the recommendations of the final report of the 2006 review of the labour code. It is long overdue. Many of these recommendations and much-needed updates would benefit the many hard-working Canadians working two or three part-time jobs, trying to support a family and purchase or maintain a home, a home whose affordability is increasingly out of reach of most middle-class Canadians in Canada, let alone for those individuals working multiple jobs at minimum wage.

It is a simple and perhaps obvious truth that it is easier to destroy things than to build them. For anyone who has wrestled with a blank page, a canvas, a drafting table, or a freshly surveyed drilling site knows, creating something new is hard work. It takes time, persistence, and patience, and is not for the faint of heart. Destruction, on the other hand, is something we have been able to accomplish with ease since we were all very young. At the age of one, a child will happily smash, in a matter of seconds, a birthday cake that took his or her parents an hour and a half to create. Over the past decade, we have witnessed more than our fair share of destruction, a destruction far less playful and humorous than the smashing of the cake.

In a few short years, we have seen the dismantling of the rights for each and every individual across the nation, rights that have taken decades to create, nurture, and grow, rights that protect each one of us, but also, and more important, rights that protect the most vulnerable among us.

The previous government, in a few short years, trampled on and set fire to those rights most dear to individual Canadians, and certainly to those individuals who care about the environment, social services, workers' rights, women's right, the poor and every other marginalized individual and community in this great land; also to those individuals who care about good, honest fiscal management and the economy, and children's education and futures; and especially to those who care about indigenous communities, their languages, cultures and people. These are not and should not be seen as mutually exclusive things. They work together. Each of us is better off by including the other.

Thankfully, today is a new day, and Bill C-4 is a great first step. However, we must do better, be better, and dream much bigger, because we have a lot of ground to make up.

I implore the governing party to be bold, to take the time to recognize respect, and provide rights to individuals who brought them here, because these are individuals who make up our great country. Each of them is a hard-working Canadian.

Today we also know that many Canadians are hurting. Many have lost their jobs and are in danger of, or have already, losing their homes. Many regularly use food banks and emergency shelter that, in some cases, is becoming their everyday shelter. This is unacceptable in a country as great as Canada. We can and must do better.

Bill C-377 was an unnecessary, discriminatory law designed to impose onerous and absurdly detailed reporting requirements on a particular segment, on unions. The bill was pushed through Parliament by the previous government, despite widespread opposition from a wide variety of interests, not just unions. Why? Because the negative effects of the bill would harshly impact each and every Canadian.

Each of these groups and associations represent individuals whose rights they consider important, whether one belongs to a union or not. Some of those individuals and groups were constitutional and privacy experts, for example, the NHL Players Association, provincial governments, Conservative and Liberal senators, the Privacy Commissioner of Canada, the Canadian Bar Association, and the insurance and mutual fund industry.

Likewise, along with the Privacy Commissioner of Canada, we believe this bill goes against the Canadian Charter of Rights and Freedoms. If not repealed, this bill will be defeated by the courts.

The New Democrats opposed the bill at every stage, because the legislation was as unnecessary as it was irresponsible. It corrupted the very idea of fairness and balance in negotiations between parties and undermined the fundamental right of free collective bargaining. It was a partisan assault on the men and women who went to work every day to provide for their families.

Canada needs a strong and healthy trade union movement. Historically speaking, unions in Canada have done much, not only for their members, but for Canadian society as a whole. When unions are weakened, all working people feel it. Why? Because, contrary to the rhetoric of those threatened by workers' associations, namely the wealthy 1% and a few misguided Conservatives, attacks on collective bargaining do not promote economic growth. Attacks like these promote inequality, not a healthy economy.

In 2002, documents based on more than 1,000 studies of the impact of unions on domestic economies, the World Bank found that a high rate of unionization led to greater income equality, lower unemployment and inflation, higher productivity, and a quicker response to economic downturns. A quick response to an economic downturn seems like it might be a positive thing right about now.

The previous government claimed at the time that it was acting in the name of transparency, but the Conservatives failed to mention that unions were already required to make their financial information available to their members. The bill is an unnecessary redundancy solving a non-existent problem.

Something we have not heard yet is that the bill would cost taxpayers a great deal of money to achieve absolutely nothing.

The Parliamentary Budget Officer estimated that it would cost much more than the $2.4 million allocated by the CRA to do this level of monitoring. In fact, it was estimated that Bill C-377 would cost the Canada Revenue Agency approximately $21 million to establish the electronic database over the first two years, and approximately $2.1 million per year for subsequent years. Many estimates were even much higher than that. I am being conservative.

As such, implementing the requirements in this bill will be ridiculously expensive for what is clearly redundant and unnecessary harassment. Repealing Bill C-377 would save millions of dollars annually, both for government and for unions, money that could be much better spent creating jobs rather than stifling them. In short, this bill should never have seen the light of day, and repealing it is just common sense.

Similarly, Bill C-525 was a private member's bill supported by the previous government. The bill was designed to make it harder for workers to unionize, and easier for unions to be decertified. Once again, the previous government was solving a non-existent problem.

Bill C-525 attacks the fundamental right of association by making certification of new worker associations or unions much more difficult and the decertification of existing unions much easier. The labour law changes were made despite there being zero evidence of a problem with the previous system of union certification.

A union, like any other type of association, such as the Association of Information Technology Professionals or the Canadian Society for Civil Engineers, exists to provide support and a voice for its members. What right does a government have to meddle in the daily management of the Canadian Association of Petroleum Producers, for example? None. Therefore, why should the government meddle in daily management of a worker association or union? On the surface, it just seems silly.

It seems a government should have much more important things to accomplish with its time, its budget, and its efforts. However, the efforts of such destructive meddling are much more nefarious than a bizarrely childish obsessiveness with union busting, and these effects have a negative impact on all Canadians. Whether a person supports unions or not, the fact is unions have been a driving force in ensuring all hard-working Canadians, whether unionized or not, receive a basic level of rights, freedoms, and protections.

The health of Canadian unions is at the heart of the health of Canadian workers' rights for each and every working Canadian. Moreover, as mentioned previously, the organized association of working people is important to Canadians and the economy. Higher wages negotiated by unions improve the lives of everyday Canadians and inject an additional $786 million into the Canadian economy each week. Standing in the way of the well-being of hard-working Canadians is bad policy, bad governance, bad fiscal management, and bad for the economy.

As such, the NDP and Canadian unions are pleased that the federal government has tabled legislation to repeal the controversial bills, Bill C-377 and Bill C-525.

The CLC president, Hassan Yussuff said:

...these bills were nothing more than an attempt to undermine unions’ ability to do important work like protecting jobs, promoting health and safety in the workplace, and advocating on behalf of all Canadian workers.

Mark Hancock, the national president of CUPE, confirmed, saying:

This is good news for all Canadian workers. These bills were nothing more than political attacks on unions and we are happy that the new government is moving quickly to correct these wrongs...This is a good step in re-establishing a sense of respect for unions, the democratic voice of working people.

Likewise, Paul Meinema, the national president of UFCW, said:

UFCW is pleased to see the government tabling Bill C-4. Our union campaigned vigorously against the Conservative Government`s Bill C-377 in the last parliament. The bill was undemocratic, and part of the Conservative government`s campaign against workers and workplace democracy. It was also a major invasion of the privacy of individual union members and it infringed on provincial jurisdiction over labour issues. Repealing Bill C-377 is positive for all Canadians as this bill would have been expensive for the government to implement and monitor.

The NDP will continue to push the government to restore and enhance collective bargaining rights as well as fair working conditions for all Canadians. The NDP will continue to pressure the government to reinstate a federal minimum wage and to enact anti-scab and proactive pay equity legislation. Likewise, the NDP will push the government to repeal the previous government's dangerous legislation, just to confuse things also called Bill C-4. Larry Rousseau, in a 2013 article published by the The Huffington Post, called the previous Bill C-4 explosive, claiming the bill turned back the clock almost 50 years. A bill this backward, overtly ideological and explosive needs to be repealed, not just reviewed.

What value does a bill limiting a person's right to refuse unsafe work bring to the table? What exactly needs to be reviewed in a bill that does away with independent health and safety officers and that prevents federal public service workers from accessing the Canadian Human Rights Commission and tribunal over workplace discrimination and complaints? A review legitimizes this offensive legislation. It is time to just repeal it.

Having fought hard against these unnecessary and irresponsible bills, the NDP welcomes the changes tabled by the current government. The rights of working people have been under attack for far too long and the repeal of these bills is a good first step, but there is so much more to do for workers' rights and working conditions for Canadian men and women.

The NDP will push the government to restore good faith bargaining with our public sector workers. We will push the government to reinstate a federal minimum wage and ensure that workers have fair and independent health and safety protections. We will push the government to adopt anti-scab and pay equity legislation, because all Canadian workers deserve fairness and respect.