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

This bill is from the 41st Parliament, 1st session, which ended in September 2013.

Sponsor

Russ Hiebert  Conservative

Introduced as a private member’s bill. (These don’t often become law.)

Status

At consideration in the House of Commons of amendments made by the Senate, as of June 26, 2013
(This bill did not become law.)

Similar bills

C-377 (41st Parliament, 2nd session) Law An Act to amend the Income Tax Act (requirements for labour organizations)
C-317 (41st Parliament, 1st session) An Act to amend the Income Tax Act (labour organizations)

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.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-377s:

C-377 (2024) An Act to amend the Parliament of Canada Act (need to know)
C-377 (2017) An Act to change the name of the electoral district of Châteauguay—Lacolle
C-377 (2010) An Act to amend the Food and Drugs Act (durable life date)
C-377 (2009) An Act to amend the Food and Drugs Act (durable life date)
C-377 (2008) Climate Change Accountability Act

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.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 5:55 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Representatives for the Merit group and the Carpenters' Union were in the room. I asked the representative for the Carpenters union: “If Bill C-377 passes, would Merit Canada see a financial gain?” Of course, he said “yes” and went on to speak about it.

Clearly, the Merit group is a competitor to the building trades and, in particular, to carpenters and electricians. It would be competing for the same jobs, seeking to employ its workers as the union would be seeking to employ theirs. However, the Merit group would know the bid structure that the unions were working from. Where do we ever see that in the business community?

We hear talk about big labour bosses in this place. I am not quite that big, but I am getting there. I signed my first union card at 14 years of age in 1961. I was a member of the CBRT&GW and later with the communications workers. I was vice-president and president, both terms of six years. I was an executive member of the Hamilton and District Labour Council for 28 years and president for 14 years.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 5:55 p.m.

An hon. member

And all elected.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 5:55 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Yes, as a friend was saying, all elected and repeatedly elected.

However, I had close to 20 years as a rank and file member previous to that. I attended monthly union meetings where I reviewed line by line and then voted on our monthly financial statements. The trade union taught me one important lesson, which may be why Bill C-377 is before us here today, and that was to question authority.

In the 1980s and 1990s there were two leaders fighting for justice and equality and questioning authority. Nelson Mandela was first supported by the Canadian labour movement when it was not acceptable in society. Then there was Lech Walesa, a trade union organizer, human rights activist and co-founder of Solidarity, the union. That was the union believed by many to have started the downfall of the Soviet Union. Both Mandela and Walesa were feted and honoured in Canada by our federal government.

To my Conservative colleagues, I want to share some information about union operations they may not know. Please take a moment and listen. In fact, I doubt if many members of the Conservative Party have ever set foot in a union hall, union meeting or a union convention. Therefore, I will try to inform them as to why Bill C-377, in my opinion, is not needed.

I spoke of my early years as a rank and file member, but later, around 1979, I became vice-president of my local union at Bell Canada for communications workers and then president. In those positions, I was responsible for ensuring that the treasurer's reports were complete and available to our members each month.

As an officer and a delegate, I attended union conventions, political Federation of Labour conventions and Canadian Labour Congress conventions, where we received and voted on audited financial statements, approved future workplace information campaigns, and also campaigns to inform the general public of the labour movement's views on municipal, provincial and federal governments. For 14 years as president of the Hamilton and District Labour Council, we also produced monthly financial statements and yearly audited statements for our delegates. Therefore, if this is the case, why is Bill C-377 before us?

Bill C-377 is intended as an attack weapon against unions that do not share the Conservative government's political view. In other words, unions question the authority of the government, which is one thing the Conservative government has a great deal of difficulty with.

Unions have stood up against the policies of all three major political parties at one time or another, including the NDP. Therefore, as Walesa and Mandela did, unions continue to stand up for their members and in doing so stand up for the broader community. The last I heard, this is how our democracy is supposed to work.

Bill C-377, in my opinion, from the very first has been a flawed piece of unnecessary discriminatory legislation designed solely to impede legitimate member-approved union activities that call into question the actions of the Conservative government. Any union member who says that they do not know the functions of their union has not been attending their monthly union meetings where they are debated and voted upon.

We are in favour of transparency, but it must be applied fairly to the organizations that should be targeted and must not cause harm. The bill violates the rights of association, privacy and freedom of expression. The privacy commissioner agrees with that statement, by the way.

The bill is an ideological attack on labour organizations, and it is interesting, because it uses the words “transparency” and “fiscal responsibility” to mask its real objectives.

It would be a costly bill. It would cost millions of dollars to put into place and to establish the databases, which will cost at least hundreds of thousands, if not millions of dollars a year, going forward. The estimates that came before the finance committee were based upon 1,000 organizations. More than 25,000 would be covered by this in the labour movement of Canada. This is a huge burden for both government and workers. The purpose would lessen the vitality of those organizations to defend the rights of workers. Imagine what would happen if there were an additional 17 million hours of paperwork foisted on to business, like it would be foisted on to labour?

Bill C-377 would also give confidential information to businesses and government, which would give them unfair, competitive advantages and political advantages over the labour movement.

Why does the bill target only labour organizations and not all organizations? There are other organizations in the country that receive the benefits of tax breaks and, further, they receive them from the government. In fact, the government promotes many of them. Is this not discriminatory? Are the Conservatives comfortable spending millions of dollars for the records of unions' financial transactions during this period of fiscal restraint? Are they comfortable disclosing so much private and personal information on Canadians?

I realize I am getting close to the end of my time, but we have a bill to deal with an issue that nobody was complaining about, except the government. The Conservatives decided that they lost an election in Ontario because of the labour movement, and this is the end result. This is the reality of what it is all about.

There is another minor point: double taxation, and it is double taxation exactly. It would cost the taxpayer to institute Bill C-377 in the government. However, it would also cost the same taxpayer who happens to be a union member because 4,300,000 would have their union dues raised by the Conservatives. Is that not a first. They would have to pay for it. How do we think it would get done?

Now there will be Conservative union dues for the union workers in the country, and I am sure they will send letters of thanks to the government.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:05 p.m.

Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, I am very pleased to put my 2¢ worth in on this very much flawed legislation.

Before we get started, Canadians live in a great and very privileged country. I think we need an opportunity sometimes to reflect on that, and the bill should give us the opportunity to do that. Many of the things we enjoy as Canadians and many of the things we take for granted right now, were won on the fact that workers banded together and formed a common front to earn benefits, to earn decent wages, to fight for pensions, to fight for health benefits.

Unions and organized labour in the country and really, in the free world, have created a middle class. Is there anybody in the House who is not concerned about the inequality of income in the country now, where we see the rich getting richer and those who are experiencing hardship, the poor, are getting poorer? It is a fact.

With an attack on the middle class, unions first and then the middle class, we will see a downward pressure on wages. We will see an attack on benefits. I do not see where that would benefit anybody. It certainly will not benefit the workers of our country. Let us ensure we do not take that for granted.

The bill was flawed from the outset. At first it would charge $1 million a day for a union that did not comply, but the Conservatives had to pull that back. It has been a travesty since the first day.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:05 p.m.

Conservative

Kerry-Lynne Findlay Conservative Delta—Richmond East, BC

Mr. Speaker, I rise on a point of order. I believe that the member opposite was deemed to have spoken as of Friday, as motions were moved at that time. He was deemed to have spoken then. The comments he is making now are out of order.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:05 p.m.

The Acting Speaker Bruce Stanton

I appreciate the hon. member's intervention. We will check the record to be sure. We are at report stage of the bill. We will stop the clock momentarily to make sure.

I am informed that the hon. member for Cape Breton—Canso is one of the sponsors of the motions before the House and has not yet spoken on the motion in this case. The hon. member for Cape Breton--Canso has the floor.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:10 p.m.

Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, that is one thing those members like to do: If they can silence an opposition voice, they like to silence it. How noble it is to silence any opposing voice, and we have seen that time and time again.

I want to direct this at the fiscal Conservatives over there. That is the background of the member for New Brunswick Southwest. Let us talk about the cost of the bill because—

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:10 p.m.

The Acting Speaker Bruce Stanton

Order. We have a point of clarification here. Just to be clear, at the time the motions were moved the hon. member for Cape Breton—Canso had the opportunity to speak to the motion and declined to do so at the time. What the Standing Orders indicate at that point is that the member has in fact been deemed to have spoken to the motion. The hon. member for Cape Breton—Canso has spoken to the motion. He is deemed to have spoken to the motion at report stage.

I will hear the hon. member briefly.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:10 p.m.

Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, I rise on a point of order. I think if you seek it, Mr. Speaker, you will find unanimous consent to—

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:10 p.m.

The Acting Speaker Bruce Stanton

I am obliged to put the question to the House. Does the hon. member for Cape Breton—Canso have the unanimous consent of the House?

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:10 p.m.

Some hon. members

Agreed.

No.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:10 p.m.

The Acting Speaker Bruce Stanton

Resuming debate. The hon. member for Newton—North Delta.

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:10 p.m.

NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, it is my privilege today to rise—

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:10 p.m.

Conservative

Stella Ambler Conservative Mississauga South, ON

Mr. Speaker, I rise on a point of order. I do believe I am next on the speaking list for this. Would you mind checking?

Income Tax ActPrivate Members' Business

December 11th, 2012 / 6:10 p.m.

The Acting Speaker Bruce Stanton

My apologies. It was not apparent to the Chair that there was an additional name in the Conservative slot for this time. We are resuming debate and going to the hon. member for Mississauga South.