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

[Marwan Tabbara, Liberal, Kitchener South—Hespeler, ON]

Madam Speaker, I would like to inform you that I will be splitting my time with the member for Laurentides—Labelle.

It is great to be back on Parliament Hill. I hope everyone had a great summer and time well spent with their families and loved ones.

Prior to the election, I was a member of United Steelworkers Local 4610 for over 12 years. Early on, as a teenager working in a unionized manufacturing facility, I was unaware of the role unions played for their members. As I matured and grew older, I quickly realized the great value of unions in protecting workers' rights. Today I am proud to rise in this chamber to talk about the role of the unions in the country and how Bill C-4 will reinstate a fair and balanced federal labour policy.

Unions are a fundamental element of Canada's social and economic fabric and are at the core of our middle class. They help create well-paying jobs, safe communities, and a prosperous economic environment. They set standards for working conditions and quality of life for working people.

Canada has a relatively high rate of unionization, with 30% of workers belonging to unions.

Union-negotiated wages and benefits are usually superior to what non-union workers receive. Higher wages foster a thriving middle class. Higher wages mean more money spent in our consumer-driven economy. Higher wages mean a healthier population.

Unions have been a driving force for economic equality and social rights in Canada, including pay equity for women, safer workplaces, and better pensions for retirement. These advantages are not restricted to union members. Indeed, when unions raise the bar, they raise it for every worker in Canada. The five-day work week, minimum wage, maternity and parental leave, vacation pay, and protection from discrimination: we owe them to the actions of unions.

I have worked in both non-union and union environments. To elaborate, with respect to safety, I remember working in a unionized environment, and the thoroughness of the orientation it provided on safety was superior to any place I had worked before. I had worked in non-unionized places, and although there was a lot of training on safety, the unionized places ensured the safety of their workers to the highest level I had seen.

When Bill C-525 and Bill C-377 were presented under the previous government, they were perceived by many as an ideologically driven and unwarranted attack on unions and collective bargaining.

Bill C-525 was introduced in June 2013. The provisions contained in the bill were designed to make it harder for unions to be certified. It was proposed and enacted without consultation with relevant stakeholders, and because of that, a number of labour organizations and employers expressed their opposition to the bill.

Bill C-377 was also introduced under the previous government—

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Madam Speaker, as I have been saying from the beginning of my speech, we need to put mechanisms in place to ensure that all union organizations are being transparent. Bills C-377 and C-525 accomplished just that, and yet the government, with the support of the second opposition party, is doing away with them.

I hope that was brief enough. Clearly, some sort of coalition is forming against us right now, because those bills were important.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Madam Speaker, I would like to thank my colleague from South Surrey—White Rock for sharing her time with me. Clearly, it is much easier to say the name of her riding than to say Montmagny—L'Islet—Kamouraska—Rivière-du-Loup.

I also want to thank the member for Louis-Saint-Laurent and the member for Lévis—Lotbinière, who participated in last week's debate. They did an excellent job of pointing out the importance of the bills passed a few years ago by our government, specifically Bill C-377 and Bill C-525. They were very important bills.

The government seems to be saying that these bills are not as important because they are private members' bills. Today, the government is trying to make it seem that these bills are less important, even though the Liberals themselves have some bills of this nature on the table at present.

We should also applaud the contributions of former member Russ Hiebert and the member for Red Deer—Lacombe, who is still with us. They sought to make the labour movement fairer, more transparent, and more democratic.

If Bill C-4 is passed, the government will be denying workers two fundamental rights. The first is union transparency, which is very important. Members pay union dues and must therefore have the opportunity to vote in a transparent process. That is what we believed at the time and what we still believe today. We also believe that unions need to be transparent, particularly with regard to the dues they receive.

Workers must be able to exercise their right to vote by secret ballot without fear of reprisal from their colleagues or superiors. We know that there have been instances of retaliation in the past. Intimidation occurs within the labour movement. That has always been the case and will likely always be the case.

These two rights are common sense and taken for granted. They should have the unanimous support of all members of the House, but they do not. The Liberal Party feels indebted, not to ordinary workers, but to big union bosses who obviously worked behind the scenes to help the current government get elected.

Whether they are members of a union or not, all Canadians have a vested interest in ensuring that labour groups are transparent with their members and with all Canadian taxpayers, since $4 billion in union dues are collected every year. As a result, unions are entitled to tax credits for labour-sponsored funds, such as Fondaction CSN and the Fonds de solidarité FTQ in Quebec. These funds are paid for by all Canadians.

We therefore believe, and rightly so in my opinion, that full transparency is needed when it comes to these funds and the taxes that are paid. That is why Bill C-377 was so necessary.

As our colleague pointed out last week, $500 million in taxpayers' money goes into these funds annually. That is a huge amount of money. The government opposite believes that requiring unions to make public any expenditures of $5,000 or more places a heavy administrative burden on them.

As members of Parliament, to get reimbursed for a taxi ride we are required to submit a receipt if the total is equal to or greater than $25. We have to substantiate our claims.

I think this government has a lot to learn from what happened in the past few months because by all accounts transparency was lacking. This government claims to be extremely transparent. However, we learned that the Minister of Health claimed $1,700 in expenses for her limousine, the Minister of Environment and Climate Change claimed $6,000 in expenses for a photo session, not to mention everything we learned last week about the moving expenses for key government employees, including employees of the Prime Minister. Hundreds of thousands if not millions of dollars have been spent by a number of departments.

If it were not for the fact that transparency is mandatory in this Parliament, we would be none the wiser. It is therefore essential that the same level of transparency required of governments and elected members be required of unions and of big union bosses.

If I were a factory worker in La Pocatière, Montmagny, Rivière-du-Loup or l'Islet, which are four towns in my riding, I know that union dues would be deducted from my paycheque every week in order for the union to protect my interests. However, that money must be spent wisely.

Any government or organization must be transparent for its taxpayers or its members. We cannot stress this enough. We must ensure that all members of an organization have a full accounting of how their money is spent, because it is their money. As MPs, we manage taxpayers' money. Thus, the government must be transparent. It says it is, however, it is not even exercising its own prerogatives.

If this government believes that $5,000 is too low a threshold for a detailed accounting of expenditures, what amount does it believe is more appropriate? That is an excellent question because $4 billion in union dues is paid every year. Five thousand dollars is a minimum. That was our belief back then and that is what we continue to believe today. Does the government have a different minimum threshold?

It is important to remember that, as MPs, we have to report any expense of $25 or more. I do not see why a union should not have to do the same for expenses of $5,000 or more so everyone knows how people's union dues are being spent.

The government has to answer for how it spends taxpayer money, and charities also have to account for their spending to comply with Canadian law.

Any charity that supports a particular candidate or party during an election campaign runs the risk of being stripped of its special tax status under the Income Tax Act. Why should unions be exempt from similar neutrality and impartiality obligations?

The Liberals say they are all about evidence-based policy, but they often seem willing to turn a blind eye to union activities whenever it suits them.

We believe that Bill C-4 will destroy all the crucial measures we included in those bills. Transparency being a priority, union leaders must demonstrate the same degree of respect, integrity, and care as government and opposition MPs. As those in charge of managing taxpayer money, we must be transparent about how we spend it.

Bill C-4 gets rid of all that. Those two essential pieces of legislation worked very well together. I think they are necessary and should continue to be necessary. That is why I am going to vote against Bill C-4.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Madam Speaker, there is no question that this legislation is an attack on two previous bills, Bill C-377 and Bill C-525.

I find it interesting to hear my colleague, a former mayor of a major city in Canada, say that she respects unions. We all respect unions.

I would like our colleague to talk about her experience in her time in municipal government doing the proper process.

[Dianne Lynn Watts, Conservative, South Surrey—White Rock, BC]

Madam Speaker, I will be sharing my time with the member for Montmagny—L'Islet—Kamouraska—Rivière-du-Loup.

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

The bill would reverse a number of pieces of legislation that made it easier for union members to have a fair say within their unions via a secret ballot. It also ensured that union leaders were accountable to their membership and taxpayers by having their financial statements disclosed, as they operate tax free. This is no different from political members of Parliament, MLAs, crown corporations, charities, and native reserves, which I now understand has been reversed as well.

I have heard much throughout this debate, from all parties. I heard some of the most disturbing comments last week from members, and again from one of the members today, calling this original legislation “backdoor”, “anti-union”, “an attack on labour unions”, “union busting”, and that we, as Conservatives, hate unions.

I not only find those comments absurd; I find them frankly offensive. Many of our members have worked with unions and many have belonged to unions. There are seven out of 10 provinces that have financial disclosure requirements. Union members, past and present, along with the general public, supported disclosure, by over 80% in polling data when the bills were first introduced in 2013. When did accountability and transparency become so abhorrent to the government?

I have personally worked with numerous union leaders, union executives, and union organizations over many years. We did not always agree on every topic, but we still worked together. We still resolved issues. We still respected each other's opinions. More important, we respected each other's differences. In past elections, I have been publicly endorsed by unions, and even in this past federal election, as a Conservative, I was endorsed by a union.

The reason I say this is to allow some balanced perspective to enter into this debate. Bill C-377, passed by the previous government, added an additional tool of confidence and transparency for workers, requiring unions to disclose the way that they spent their money. It did not regulate how unions could spend their money, nor did it regulate any other activity. It simply helped to give Canadians a more open and transparent picture.

Bill C-525, also passed by the former government, helped strengthen the rights of union members. It gave them the power to vote by secret ballot.

However, this bill, Bill C-4, would take those rights away from union workers. It begs the question of why a government, which insists that it is all about openness and transparency, is so insistent on taking away workers' rights.

I have witnessed the certification of manufacturing plants. I can assure members that this is not an easy nor a smooth process. I have personally witnessed the intimidation by both union workers and management personnel. A secret ballot lets an individual's true opinion be heard without fear of repercussions. By not allowing a secret ballot, we are putting workers, on both sides of the issue, in a very awkward and intimidating situation.

Let us never forget that all parties must work together to create a healthy and productive working environment. Jobs need to be created; they need to be sustained. Opportunities need to be provided for workers, and industry sectors need to grow. It is a symbiotic relationship, one that cannot survive without the other.

Canadians across this country have the democratic right to vote for their elected representatives by secret ballot. Abolishing the secret ballot is one of the most undemocratic actions that a government can take, and this is exactly what would happen with this legislation. A government cannot and should not pick and choose who gets the right to a democratic process. However, the current government is continuing down this path.

Not only are we seeing the lack of democratic process through Bill C-4, but we are seeing this play out in communities across this country with the so-called consultation on electoral reform. There is an overwhelming desire by the general public to have a referendum. We have seen it over and over again, in dozens of polls, in letters, newspaper articles, and in petitions across this country. People want a say in the way that they elect their political representatives. To have a few people gathered at town halls is not representative of the people's voice. It is one element to gather information. However, we cannot base our decisions solely on a few people showing up at a town hall.

By note, there were about 70 people in my riding who came to a town hall: the EDAs, the last candidate of record for the Liberals, some of their friends, and a very small number of people who were non-partisan. That does not represent the majority. However, I did send out a questionnaire to every household in my riding to ask about electoral reform, as well as having an online questionnaire. Overwhelmingly, the people want a referendum. They want a say in how they elect their representatives. They do not want politicians deciding for them.

Another funny little anecdote is that the issue of electoral reform was at the bottom of their concerns. People are concerned about health care, jobs, rising taxes, and a litany of other things. It certainly is not electoral reform.

This tells us many things, and it gives us an indication of what the current government thinks of openness, transparency, and accountability. People want a referendum on electoral reform and for workers to have a right to a secret ballot. Whether they use it is up to them, but they should have that right. Conservatives value transparency, accountability, and democracy, which is why we introduced those pieces of legislation in the first place. Bill C-4 is the complete opposite of transparency, accountability, and democracy. Therefore, I cannot support Bill C-4.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, in listening to the question, one thing that came to mind is the fact that throughout this entire debate, outside of the Conservative Party, I have not received one phone call, email, or letter, at least to the best that I can recall, which was critical of Bill C-4.

The same cannot be said about the private members' bills. Bill C-525 dealt with the card check system, about which the Conservatives would ultimately say it should be the freedom of the vote and that the card check system is not needed. Many members of the union movement in particular thought it was a way to minimize the growth of unions, and even destabilize other unions currently in place.

Bill C-377 dealt with financial matters, where unions as a group were targeted. For what reasons? I have commented extensively on this. I believe there was a lot of negative political motivation that ultimately put politics and wedge issues ahead of Canada's best interests in terms of labour relations in our country.

[Serge Cormier, Liberal, Parliamentary Secretary to the Minister of Fisheries]

Madam Speaker, our government recognizes the very important role of unions in protecting labour rights across Canada.

I have personally met with the representatives of a number of labour organizations since I took office. They all agree that Bill C-377 and Bill C-525 weaken the Canadian labour movement and hinder the establishment of productive labour relations between employers and employees. The previous government hindered these relations, and our government is determined to repeal Bill C-377 and Bill C-525.

Can my colleague quickly explain to me once more what Bill C-377 and Bill C-525 imposed on unions and workers?

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Madam Speaker, I would like to correct some of the facts.

Basically, when the previous government passed Bill C-525 and Bill C-377, there were major consultations, a word I believe the current government loves to hear all the time. The House of Commons Standing Committee on Finance examined the issue, as did the Senate Standing Committee on Banking, Trade and Commerce, and the Senate Standing Committee on Legal and Constitutional Affairs.

Although no one is accusing the government of being logical, here is the question. What is the motivation behind the legislation? I believe an observer would say it is to protect the union bosses. The irony is that those union leaders are themselves elected by secret ballot. Does it make sense that union leaders be elected by secret ballot if secret ballots are not allowed for union certification votes? That is the question, and hopefully we can hear some logical answers.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, as many will know, when there is an opportunity to talk about the issue of labour relations in Canada, as much as possible people can count on the fact that I love to be able to share my thoughts on what I believe is a very important issue. It is an important issue not only for me but also for the Prime Minister and the Liberal caucus as a whole. That is very clearly demonstrated in the degree to which labour relations has been made a parliamentary priority by the government.

I can recall having discussions about labour-related legislation prior to our being in government, when we discussed two private members' bills. I will comment on that because at times it was fairly emotional for my colleagues opposite when we indicated the manner in which the past government, the Harper government, had changed the labour laws.

One of the discussions that took place had to do with the sense of unfairness about what the Conservative government was doing at the time in introducing private members' legislation. Therefore, no one should be surprised that the new government, led by our current Prime Minister, has made a fairly bold statement that we want to establish a new attitude and a new relationship between labour and management, given the harm caused by the former government. It did not take long for our new government and the Prime Minister to bring forward legislation that will ultimately assists in setting the stage.

Bill C-4 is a genuine and effective attempt to repeal legislation that was previously introduced in the House by private members. I was there during the debate when those private members' bills were brought forward to fulfill what we believed at the time was the Conservative Harper government's agenda with respect to labour relations.

Over the years, I have had the opportunity to walk on picket lines and to support workers. I have had opportunity to meet with management groups to talk about labour relations. I understand the importance of balance. At one point, I was even the labour critic in the Province of Manitoba. I understand how important it is that there be balance, because balance is what provides for an effective bargaining process.

Although we have only held the reins of power here at the national level for a relatively few months, I believe we have made significant strides forward. I was really encouraged by our ministries here today that were so effective in sending the message to Canada Post and the union not to expect the current government to jump in with back-to-work legislation.

The government's expectation is that the stakeholders in this case, the management and the union, will be able to negotiate in good faith. I believe that in good part they have understood that the government wants to see that different attitude toward negotiations and that it believes it is in their best interest, both management and the labour side of Canada Post, to reach a negotiated agreement. In essence, that is what we have witnessed. When there is an opportunity for a negotiated agreement between the stakeholders, I believe this is what we should be striving for at all times. I do not believe the previous government really appreciated that fact.

Hansard will clearly demonstrate that I would comment back then that everyone knew at the time that the government of the day would institute back-to-work legislation virtually immediately if a strike took place. How did that influence negotiations? It was not just in respect of Canada Post. Indeed, the government needs, as much as possible, to respect and allow for negotiations in good faith. It does not necessarily mean that we are limited. We act in the best interests of Canadians at all times.

The former government did not recognize the importance of labour harmony. That is one of the reasons why we, as a government, had to deal with labour legislation right from the get-go. That is exactly what our Prime Minister and our government did with the introduction of Bill C-4. First reading was back in January and the bill was brought forward for second reading in February.

What was the Conservative Party's official response? The Government of Canada said that Bill C-4 was a priority piece of legislation and that we should debate it. Back then, the Conservatives did not think twice. They brought forward an amendment to the legislation. The amendment read:

That the motion be amended by deleting all the words after the word “that” and substituting the following therefor: “this House decline to give second reading to Bill C-4, An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and the Income Tax Act, because the bill violates a fundamental principle of democracy by abolishing the provision whereby the certification and decertification of a bargaining agent must be achieved by a secret ballot vote-based majority”.

Right away, the Conservative Party attempted to reject Bill C-4. It did that because it prefers those private members' bills, no matter who was offended by them. I am very proud that the government continued to push forward boldly with the legislation, understandably so, and we saw it go to committee.

When we deal with bills like C-525, C-377, and C-4, they go to committee and we get all sorts of different types of presentations on them. However, in this case, both labour and management argued that the approach established by Bill C-525 and Bill C-377 set a dangerous precedent for labour relations and law reform, wherein the tripartite consultation process—referring to employer, union, and government—had traditionally been considered as essential by the stakeholder to maintaining a workable labour-management balance.

We saw both sides make that claim. Many members in the Liberal caucus have raised that issue. I listened to my colleague from Atlantic Canada, when he was the critic for labour, stand up many times and articulate how important that balance was and how we had to respect the importance of the stakeholders. That was one of the fundamental flaws with the private members' bills that were being advanced at the time, which we are repealing through this legislation.

We have an hour of private members' business every day, almost without exception. There was substantive labour legislation. When changes are made to labour legislation, there is an obligation to take those stakeholders, the labour and management sides, and bring them to the table and sit down with them to get a good understanding of where consensus could actually to built. That allows the government to be involved in this well-established process that has proven to be fairly effective in Canada. Other jurisdictions look to Canada to see how we are able to provide balance between labour and management, and the different stakeholders.

That is something that is so critical, yet both of those private members' bills did not go through that process. In fact, if we had applied the same rules of procedure to Bill C-4 as we did to the two private members' bills, then we would not be debating the bill right now. The bill would have been limited in terms of the amount of time allowed for debate.

Members know full well that a private member's bill is treated quite differently than a government initiative or government legislation. There is more debate time for government bills. There is a different process, whether it is the lead-up, the making of the legislation, ensuring that there is that consultation and that the consensus is built between and labour management, all the way to the second reading, third reading, report stage, and so forth.

There are time limits that are instituted in our rules to deal with private members' bills. That is why many thought it was intentional on the part of the Harper government to have private members bring legislation in through the back door. We have made reference to that in the past. Many on the other side get very upset or are offended when we talk about that back door approach, but they need to recognize that there is a difference in the process. That offended both labour and management stakeholders. At the time, the Harper government completely ignored that.

Now we are going through the process. What was Bill C-525? It was the Employees' Voting Rights Act. It was introduced in the House of Commons as a private member's bill on June 5, 2013, by the Conservative member for Red Deer—Lacombe. The bill received royal assent on December 16, 2014, and ultimately came into force on June 16, 2015. It suggested that the card check certification model, which we believe is quicker, more efficient, and more likely to be free of employer interference, was something the Conservative Party adamantly disagreed with. It articulated that it needed to be gotten rid of.

However, it did not go through the process. The private member, heavily supported by the government, brought forward that piece of legislation and it offended a great number of people, not only union personnel.

Then Bill C-377, An Act to amend the Income Tax Act (requirements for labour organizations), was introduced in the House of Commons on December 5, 2011, again by a Conservative member. The bill ultimately did pass on December 12, 2012. On June 26, 2013, amendments were made to the bill in the Senate and it was referred back to the House of Commons for review; however, the bill was restored back to its original version. Keep in mind, that was a majority Conservative Senate. Even the Senate recognized the imbalances being caused by this piece of legislation, but the Harper government used its majority to kick it back. Ultimately it was accepted and then put into force after royal assent in June 2015 and took effect in December 2015.

It is no wonder we have made this a high priority for this government. We heard some criticisms at the time about Bill C-377. That it could upset the existing labour relations balance between unions and employers was a comment we heard continuously, whether it was through debates or at the committee stage. That union financial disclosure was already addressed in the Canada Labour Code and in many provincial labour statutes was also something that was raised on many occasions, as well as why the Conservative government was singling out unions. What was the driving factor behind the Conservatives doing that?

It must be pointed out that the bill is discriminatory against unions and ignores other types of organizations such as professional associations, which also receive favourable treatment under taxation law. The bill would invade the privacy of labour organizations and their members.

It is interesting to note that the Alberta Union of Provincial Employees launched a constitutional challenge to Bill C-377. I understand that challenge is now in abeyance until we see what takes place with Bill C-4. There were a great many concerns dealing with privacy. Even the Canadian Bar Association and the Office of the Privacy Commissioner provided comments to that effect. The CBA suggested that the bill may be subject to legal challenges on those grounds alone.

It is amazing the number of provinces that voiced opposition to Bill C-377. A majority of the provinces also criticized the bill for potentially crossing over and destabilizing the labour relations environment. This is where I started my discussion. When we talk about Bill C-4, it is all about righting a wrong. It is restoring a sense of fairness and balance to our labour laws and that is of the utmost importance.

The Conservative government lost touch with Canadians on labour issues, as it lost touch on many different issues with Canadians. Bill C-4 is a good bill and should be supported by all members because it brings back and restores balance to labour relations.

Canada Labour Code

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

Madam Speaker, one of the components in Bill C-4 in repealing Bill C-377 and Bill C-525 is that union financial disclosure is already addressed in Canada's labour code and many provincial labour statutes. Therefore, many of the provisions contained in Bill C-525 and Bill C-377 were actually unnecessary. Also, the bill targeted only unions and not professional organizations.

With regard to the construction industry, there is a very healthy collective bargaining process that takes place in Ontario between the construction unions and their counterparties, and it has allowed the province to grow and prosper.

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

Madam Speaker, Bill C-4 seeks to address two real issues that were brought in by the previous government on Bills C-377 and C-525, which tilted the balance that was in place away from unions. That is the first step we have adopted to address within our labour relations area.

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

Good afternoon, everyone. Happy Friday.

Madam Speaker, I am very proud and fortunate to stand here at third reading to support our government in moving forward this important piece of legislation, Bill C-4, which would repeal Bills C-377 and C-525.

I spoke to this bill earlier, but I wanted to share my thoughts on Bill C-4 again, because I believe strongly in working to create a prosperous Canada, one in which the middle class and those looking to join it can grow and succeed. It was something I campaigned on last year and was a key plank in our government's election platform.

The two bills Bill C-4 seeks to repeal undermine labour unions and labour relations in our country, and in so doing, weaken our middle class.

Our government has an unwavering commitment to the middle class through initiatives like the Canada child benefit, which now sees nine out of ten Canadian families receiving higher monthly and tax-free benefits of approximately $2,300 a year; our middle-class tax cut, which reduced taxes for over nine million Canadians and will provide, over the next five years, approximately $20 billion in tax relief for Canadians; and recently, an historic agreement the Minister of Finance reached collaboratively with his provincial colleagues to expand and strengthen the Canada pension plan.

Our government is working to strengthen Canada's economy and to ensure that all Canadians have the opportunity to succeed.

When I last spoke to Bill C-4, I talked about the importance of the bill in restoring a clear and balanced approach to labour relations in Canada. I also talked about the fact that both my parents were union members. It was through the labour movement and its fight for fair wages and benefits that our family prospered in Canada. Frankly, it is one of the reasons I have the privilege to stand and speak in this House today.

I would like to focus my comments today on my personal connection to labour unions and their importance in helping create and sustain a strong middle class. However, before I do, I should probably provide some context and briefly explain the two bills that are to be repealed.

Bill C-377, which received royal assent in June 2015 and came into force at the end of 2015, created unnecessary red tape for unions and put workers at a disadvantage during the collective bargaining process. Bill C-525, which came into force on June 16, 2016, made it more difficult for employees to unionize and easier for a bargaining agent to be decertified.

Both bills diminish and weaken Canada's labour movement, are counterproductive to a positive working relationship between employees and employers, and negatively impact the growth and prosperity of Canada's middle class.

The two bills Bill C-4 seeks to repeal were ideologically driven, not fact, and were aimed at undermining the effectiveness of labour unions across Canada from coast to coast to coast.

One bill, Bill C-377, places onerous and unfair reporting obligations solely on labour and not on any other organizations, be it professional or otherwise. The other bill, Bill C-525, changes the way unions are certified and decertified, making it harder for workers to organize.

There was no compelling need to make it harder on the labour movement and no sound economic argument for the Conservative changes to the Labour Code. In fact, it was quite the opposite.

Given the essential role unions play in fostering and maintaining a prosperous middle class and in protecting the rights of workers, needlessly upsetting the labour market relations system that has contributed significantly to the overall Canadian economy makes little economic sense.

I said that I would be focusing my comments on a personal connection to the labour movement. Those members who know me know that I am an economist and a former corporate and government debt analyst who worked on Wall Street and Bay Street for nearly 25 years. People might ask themselves why I would be such a strong proponent of Bill C-4. It is because professionally and personally I recognize the importance of balance in Canada's labour system not only in allowing workers to make free and informed decisions but in giving employers a degree of certainty and access to a skilled workforce.

If we want to see an example of the labour system working in balance, we can look no further than the recent negotiations between General Motors and Unifor. Through a transparent collective bargaining process, both sides have come to a tentative agreement that seeks to achieve the best interests of both parties: business and labour.

I will quote Jerry Dias, Unifor's national president, who stated:

“This framework puts into motion what will be a historic agreement to secure a future for our members, for our communities and for the auto industry in Canada,” said Unifor National President Jerry Dias, who led the negotiations.

We must always ensure that labour and business can bargain in an open and balanced process. The bills that are repealed in Bill C-4 tilted that balance and it was wrong.

In my constituency of Vaughan—Woodbridge, I see how a fair and balanced labour system allows LiUNA and the carpenters' union to work with their partners, helping to ensure the availability of an educated and skilled labour force. That collaboration has played a large role in the phenomenal growth in enterprises in the city I call home, Vaughan, throughout the GTA, and, frankly, all of Canada.

Over the summer, I attended a LiUNA industry awareness event at its training facility in my riding of Vaughan—Woodbridge, where I saw first hand the training programs that LiUNA offers its members. LiUNA and its partners continue to train successive generations of workers who make Ontario a strong province and a beautiful place to call home. We must remember that unions like LiUNA continue to advocate for better health and safety conditions and strengthen pensions, which allow for a strong, prosperous, and growing middle class.

On a personal level, I also appreciate the importance of unions and a fair and balanced labour relations system. I was raised on the northwest coast of Canada in Prince Rupert, British Columbia, one of three boys, and both of my parents were union members. My father was a tradesperson, a carpenter and sheet metal worker. My mother, who, like my father, immigrated from Italy, worked in a fish processing plant. My parents came to Canada to build a better life and they brought with them the only asset they had: a work ethic and desire to build better lives for their family. With their union jobs, with benefits, good wages, and a safe environment, their aspirations for their family came true.

My parents instilled in me a very strong work ethic. Certainly those who know me, know I have carried that ethic with me proudly my entire life. They also instilled in me a very real understanding of the importance of unions and what decent wages and benefits meant to families.

In high school and while studying at university, I was a union member, working at the fish cannery, the Prince Rupert grain elevators and a pulp mill during the summers to help pay for my education. The work was not easy and the pay was not exorbitant, but it was a fair and decent wage. Because of the rules and oversight that unions helped to bring about, dangerous work environments were made safer.

Unions and their members are one of the backbones of the middle class in Canada. Union jobs enabled my immigrant parents to join the middle class. They allowed me the opportunity to pursue a higher education and, ultimately, with much happiness and privilege, it led me here to stand before the House of Commons.

I want to reiterate my full support for Bill C-4, our government's efforts to restore a fair and balanced labour relations system, and reaffirm my commitment to working toward creating and maintaining a prosperous Canada, one in which the middle class and those looking to join it can grow and succeed.

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

Madam Speaker, it is a pleasure to stand today to talk about Bill C-4.

Its purpose, of course, is to repeal the provisions enacted by Bill C-377 and Bill C-525. In other words, Bill C-4 aims to restore fairness and balance to labour relations. Throughout this process, there are some who worried about transparency. In fact, they claim that Bill C-4 attacks the transparency to which our government has committed itself. Nothing could be further from the truth.

All in this House know that our government is a champion for transparency. We are a government that is transparent, honest, and accountable to Canadians. We adhere to the most stringent ethical standards.

If we are talking about transparency, it is because this issue is of particular concern with regard to Bill C-377. Some think that the legislation was necessary to improve the financial transparency of unions. They say that it was required to guarantee public access to information on union expenses.

However, our government strongly believes that they are mistaken. Rather than improving transparency, Bill C-377 created additional privacy issues. Bill C-377 was pushed through Parliament by the previous government despite loud opposition from many different groups, including Conservative and Liberal senators, constitutional experts, and certain organizations, such as the Canadian Bar Association.

The previous government refused to listen to anyone, which is precisely why they are the previous government. We do things differently. We listen, and our efforts to improve labour relations in Canada were applauded by key stakeholders. The Public Service Alliance of Canada was pleased that our government tabled legislation to repeal Bill C-377 and Bill C-525, which this union believed was designed to weaken unions, was unconstitutional, and was a violation of privacy rights.

Canada's Privacy Commissioner Daniel Therrien has expressed concerns with Bill C-377. In his view, publicly listing specific individuals' political and lobbying activities, as well as education, training, and conference activities, in accordance with Bill C-377 is overreaching.

Recently, he appeared before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, also known as HUMA.

I will take this opportunity to advise the House that I am splitting my time with the hon. and learned member for Vaughan—Woodbridge.

If I may quote Monsieur Therrien from that committee, he said:

My role is to advise parliamentarians on the consequences that legislative measures can have on privacy. I do not have an opinion on the activities of labour organizations, specifically, but, like my predecessor, I have maintained all along that the provisions contained in Bill C-377 and its previous incarnations, went too far by imposing a public disclosure requirement. They were unreasonable and infringed on privacy rights.

Mr. Therrien continued as follows:

....transparency is not an end unto itself; it cannot be an absolute objective to the exclusion of other considerations....Transparency efforts must be carefully balanced with the need to protect the personal information of individuals.

I could not agree more.

Protecting personal information is something that Bill C-377 simply does not do.

To provide my hon. colleagues with more context, this legislation amended the Income Tax Act to require unions to provide the Minister of National Revenue with detailed information on their finances. More specifically, Bill C-377 forces labour organizations and labour trusts, including those under provincial jurisdiction, to provide information returns. These returns would then be made publicly available on the Canada Revenue Agency's website.

Bill C-377 requires this information to include financial statements stating the total of all transactions, including certain transactions over $5,000 listed separately. These could include statements on their assets, debts, and expenses, and the salaries of certain individuals.

As if this were not enough, unions must also provide details on the time spent by certain individuals on political and lobbying activities and activities not related to labour relations. Worse still is that failure to comply with reporting requirements is considered an offence subject to a fine of $1,000 for each day of non-compliance, up to $25,000 per year.

Let me state clearly that Bill C-377 does nothing to add to the transparency of a union's affairs, and the former government knows this well.

To begin with, were this legislation to remain in place, employers would have access to a union's financial information, but the opposite would not be the case. In the collective bargaining process, unions would clearly be put at a disadvantage. For example, in the case of a work stoppage, an employer would know exactly how much money the union had in its strike fund, so it would know how long the union could hold out in the event of a strike. All the employer would have to do is wait until the strike fund was exhausted. That is unfair, unbalanced, and unreasonable. The union would be completely stripped of one of its key bargaining levers.

In addition, the strict disclosure requirements apply only to labour organizations and labour trusts and do not affect other groups that also receive beneficial tax treatment under the Income Tax Act.

This practice discriminates against unions and upsets the balance of labour relations across this country.

Lastly, provisions are already in place requiring unions to fulfill their financial reporting responsibilities. For example, section 110 of the Canada Labour Code requires unions and employer organizations to provide financial statements to their members upon request and free of charge. There are similar provisions in most provincial labour relations legislation. Bill C-377 does nothing to add to this regulatory regime.

The reality is that the vast majority of unions already make their financial statements available to their members. These documents generally contain aggregated financial information and seem to meet the intended objective without it being necessary to name specific names. In other words, it protects privacy. Instead of promoting true transparency, Bill C-377 infringes on the right to privacy.

We should not force unions to provide detailed information on their finances. That is why steps have already been taken by the Minister of National Revenue to remove these obligations. As a result, during the repeal process, unions and other stakeholders affected by the bill are not required to submit detailed tracking of their activities for fiscal year 2016.

Balance is key. We need to be transparent, but we also need to respect privacy. Balance needs to be restored in relations between employees and employers. To that end, I urge all members of this House to support Bill C-4.

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

Madam Speaker, I thank the member for her contribution today. We understand that she comes from a perspective based on experience, and it is great to hear her point of view.

I have a very quick question. In her opinion, which bill put the labour movement back further, Bill C-377 or Bill C-525?

[Sheri Benson, NDP, Saskatoon West, SK]

Madam Speaker, I want to thank my hon. colleague for his comments, and for his offer to allow me to comment on Bill C-377 and Bill C-525 with the lens that they were simply mean-spirited, anti-union legislation that did nothing on a number of levels.

First let me talk about Bill C-377. My comment there is that the previous government would continually say “democracy, transparency, accountability”, and it would repeat that. Conservatives were trying to insinuate that somehow there is no democracy, no accountability, no transparency within the union movement and those associations. That is simply not true. If anyone has been part of a union or an association, they will understand the requirements that are needed to be shared with members and to file a report. It was an onerous reporting that added a lot of work and expense both on employers, as the member heard in my comments, and on the unions.

I have a quick comment around Bill C-525, which was a solution to a problem that did not exist. We heard that over and over at committee. We heard it from employers. We heard it from unions. It became very clear when we heard it from the experts, both from a previous chair of a commission that reviewed the Canada Labour Code, as well as from professors and experts within labour relations. It was simply there to make it harder to unionize and easier to decertify, and that certainly was the MO of the previous government.