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.

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September 26th, 2016 / 5:15 p.m.
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Liberal

David Graham Liberal Laurentides—Labelle, QC

Mr. Speaker, in the previous Parliament, I was an assistant and not a member, but in the debate on Bill C-377, the Liberals proposed an amendment. They actually did a good job in opposition, unlike the current one. The amendment sought to extend this obligation to all professional bodies, not just unions. The Conservatives opposed it.

Why did the Conservatives want to target just unions and not all professional bodies?

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September 26th, 2016 / 5:05 p.m.
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Conservative

Pierre Paul-Hus Conservative Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, I would like to thank my colleague from Saskatoon—Grasswood for his excellent speech.

The former Conservative government was a government of principle. We believe in democracy and people's choice and we are working to make the federal government more transparent. We worked toward that goal for the nearly 10 years that we were in office. That is why we supported Bill C-377, An Act to amend the Income Tax Act, and Bill C-525, An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act and the Public Service Labour Relations Act, also known as the Employees' Voting Rights Act.

These two bills, which were introduced by members and passed by both chambers, helped to advance the labour movement, regulate it in a transparent manner, and modernize it. Bill C-525 made voting by secret ballot mandatory. Secret ballot voting is so revolutionary. It has never been tested before, except in referendums and federal, provincial, municipal, and school elections.

It took a law to make unions hold secret ballot votes. In fact, many provincial legislatures had to enact legislation in that regard, including Alberta, British Columbia, Saskatchewan, Ontario, and Nova Scotia.

Bill C-377 required unions to disclose how union dues were spent. It was not complicated, it was just common sense, especially because the money was deducted from paycheques as a result of an established practice. In short, these two bills would have made much needed changes to unions.

I wanted to participate in the debate to speak out against what the government is doing. It is disappointing. The government's 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, will repeal these two bills.

It is disappointing to see that the Liberals, who claim to defend the middle class, widows, and orphans, are reinstating union secrecy. On the other side of the House, secret ballots and transparency concerning the use of financial resources are not important. It is not very surprising, but it is disappointing.

The Liberals' priority is to thank the big unions for throwing money at them to help get them elected. That is exactly what this government is doing with Bill C-4: it is thanking the big unions that spent big money during the last election.

It is partly for that reason that we had the longest election campaign on record. It was to prevent major unions from repeating what they did in the last Ontario election: they plastered the province with negative ads about a party in order to influence the vote. For these big unions, and for the Liberals, the interests of workers, their members, are far less important than their own corporate interests. It is not even close.

Bill C-4 spells the end for union certification by secret ballot. The big unions are free to keep using their intimidation and scare tactics to force employees into joining a union against their will. It is sad to see a strong-arm policy being enshrined by the government.

The government is failing to protect the silent majority, middle-class workers who have a hard time making ends meet and fear reprisals. They end up buying peace by keeping mum and voting against their conscience. The government is favouring the corporate interests of the big unions that need the millions of dollars in union dues that are taken off the paycheques of unionized workers.

There are many stories of intimidation. Out of fear of reprisals, or to stop the intolerable pressure, many people end up folding and agreeing to sign the certification form. They do not sign because they believe a union might be good for them, but because they feel threatened.

When the time comes to vote for or against unionization, the vote is rarely done by secret ballot. It is by a show of hands, or twisted arms if I may put it that way. Out of fear of being branded if they do not comply with their leaders, many workers choose to go with the flow instead of voting their conscience.

Workers do not vote their conscience. They are intimidated during the process, and they know that the intimidation will not stop if they persist in their opposition.

Even dictatorships that hold elections to legitimize their leaders' leadership do not vote that way. Most of the time, there is a secret ballot that gives people a choice: they can support the dictator or not. That is the way it has to be.

Everyone here would be up in arms if people could not vote their conscience because of intimidation or if intimidation shaped the outcome of any election to public office. The system as we know it would collapse. Why, then, would we accept or tolerate such a system for unions? It is inconceivable. Such behaviour is not tolerated in schoolyards, and so much is being done to counter bullying, but the government has no problem with bullying in a union context.

Secret ballots also protect employees from the possibility of their employer pressuring them not to unionize. Many employers abuse their workers and threaten to close up shop to avoid unionization.

If the majority want to unionize, and a secret ballot vote confirms it, there can be doubt about the will expressed by the workers. Why does anyone need to know how people voted, other than to apply pressure? No one in the House knows exactly who voted for whom in the last election. Secret ballot voting allows everyone to vote according to his or her conscience.

We can understand the Liberals' interest in letting the big labour organizations work under a shroud of secrecy with the money they collect every week from their members. After all, this government loves its doublespeak.

First of all, the government got caught using the public purse as a slush fund to pay for its own little whims. It was not until it was caught red-handed that the government agreed to apologize and admit its mistakes. It was not until the Minister of Health was caught making excessive expense claims for limousine service while in Toronto that she finally apologized and agreed to pay back that unjustifiable expense. It is even worse here, when we all know that Canadians already pay for a car and driver service for ministers.

Were it not for the monitoring by the House, we and Canadians would have been kept in the dark about the piles of money made available to the Minister of Environment and Climate Change for hiring photographers to take a bunch of pictures. Like a big union, the government would have preferred this crazy expense to be kept under wraps for good.

The same goes for the exorbitant moving expenses that the Prime Minister signed off on for his two main advisors and friends, Gerald Butts and Katie Telford. More than $220,000 was paid out to his close friends. It pays to be in the Prime Minister's inner circle.

Canadians are outraged to see their money being used as petty cash for the Prime Minister's close friends. Of course, in four years Canadians can get rid of the government if they are not satisfied.

Canadians benefit from having an opposition that hounds the government to be accountable with public money. Sadly, that is not the case with the big unions.

Although a unionized member can request access to statements showing how the union uses the funds it receives, that member cannot do much to limit the union's choice to support causes other than protecting and promoting workers' rights.

Let me be clear. I recognize that unions have a role to play as the representatives of workers when working conditions are being negotiated. However, influencing the outcome of an election and supporting charitable organizations are not really activities that protect workers.

The millions of dollars spent by Ontario unions on advertising in Ontario during the last election campaign boggles the mind. The big unions were defending their own corporate interests and not those of their members. Many union members are calling for more transparency from their unions and less involvement in matters that have nothing to do with protecting workers' rights. Paying for a plane to fly a banner urging people not to elect a prime minister does not help a union's members in the least. If leaders want to be involved in politics, they should stand for election. Many parties defend the interests of big unions in the House. They have lots to choose from.

However, if they are interested in protecting their workers, that is what their activities should focus on. Most of the time, union leaders spend money on things that have nothing to do with their mandate and without obtaining the support of their members. They act somewhat like kings who view the union dues collected as their booty. Workers are entitled to the same rigour from their union leaders when it comes to the money collected from their paycheques.

It is important to understand that there is no freedom of association in Canada's labour movement. With the Rand formula, when a union reaches the number of members required to become certified, union dues are automatically deducted from the paycheques of all employees, whether they were in favour of certification or not. That being the case, I think it is even more appropriate to have measures requiring large unions to keep their members and the general public informed of what they are doing with the dues they receive.

Our parliamentary system is based on the principle of no taxation without representation. In order to bring in a tax, authorization must be obtained from an elected chamber. There is a principle of accountability. Unions do not have that principle. Although workers' dues are collected systematically like taxes, there are transparency measures to show how the amounts collected by the unions are used.

For all of the reasons that I just mentioned and for many others put forward by my colleagues before me, including the member for Louis-Saint-Laurent, who did excellent work on this file, I have to say that I oppose this bill. This bill is not in keeping with this government's commitment to be open and transparent. It rewards the big unions and does nothing to protect workers—

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September 26th, 2016 / 4:55 p.m.
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Cape Breton—Canso Nova Scotia

Liberal

Rodger Cuzner LiberalParliamentary Secretary to the Minister of Employment

Mr. Speaker, the member across has tried to dismiss what Bill C-377 was about. He tried to say that we ask the same of charities, so why can we not ask this of organized labour?

The highest degree of revenue by any charity in the country is a hospital in Toronto. They file a form of about 24 pages. One of the smallest filings we are going to see, if we let Bill C-377 go forward for organized labour, will be about 400 pages. The member should try not to mislead the Canadian public, saying that it is looking for the same. Everything over $5,000, every salary over $5,000, will have to shown.

My hon. colleague said that members of Parliament would have to do this. I would ask the member if he posts the individual salaries of his staff on his website?

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September 26th, 2016 / 4:50 p.m.
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Conservative

Kevin Waugh Conservative Saskatoon—Grasswood, SK

Thank you, Mr. Speaker, for the opportunity this afternoon to speak to Bill C-4. Today, I will be splitting my time with a colleague, the member for Charlesbourg—Haute-Saint-Charles.

The bill that was introduced by the Liberal government certainly attacks the principles of our democracy, our accountability, and certainly our transparency. Two previous private members' bills, Bill C-377 and Bill C-525—and we have talked all afternoon in the House about them—which passed, are now under major attack.

Bill C-377 dealt with accountability. Bill C-525 deals with the democratic process, and we have talked a lot about the secret ballot.

Let us talk about the transparency of Bill C-377. All public bodies have rulings requiring transparency and accountability: members of Parliament, all 338 of us, all federal and provincial departments, crown corporations, municipalities, and RMs. In many ways, this is how we are judged in life. We are judged personally, and we are certainly judged by it in government. At the end of the day, how well we manage our affairs is what we are remembered for.

Charitable organizations are constantly asking for donations, and they have to be transparent. We want to know where the money is going. It is called a paper trail. Is management taking a lead role in transparency in charitable organizations? Many of us, coast to coast to coast, do a lot of charity work in our communities. I urge members to get to know more about the organization. What does it stand for, and, not only that, where is the money going? That is the essence of Bill C-4.

Under a union shop, employees pay a percentage of union dues. Are the employees aware of what the dues are used for? Where are the dues going? Are unions and their leaders transparent? They should be, especially when there is a major tax credit for deductions.

Many of us who have been union members over the last number of years, like me, for nearly 40 years, made voluntary payments to the union and it spent the money. That is the way it goes. If I went to another charity, for example, I could pick my charity, but in the union, it goes to that union.

Deductions add up to roughly, and we all heard it in House today, $500 million annually. That is a half a billion dollars. Canadians should know where that money is going.

In the past federal election, we had unions actively involved in third-party advertising. We had unions actually paying members to stand behind a party when they were doing announcements. Imagine actually paying members to participate? That was certainly a no-no. Transparency is one of the fundamental principles of democracy.

Now, Bill C-377 and Bill C-525 are under attack. Unions are taking those dues and spending millions of dollars in advertising. Are members aware of how much of their money is going to advertising? Members may not have the same view as that of the union, and yet they have little or no say on where that money is going or on which billboard.

Are members aware of salaries that are being paid to their union leaders? Are they aware of the travel involved and all of the benefits that some of these union leaders charge?

Canadians care about accountability. They want every government to be accountable. I do not have to remind members across the way about developments that have happened in the last week. All 338 members show our expenses to the public. This is what we call transparency. Even those who are not elected, as we found out last week, are now being singled out for the lack of accountability, and they certainly should be. All Canadians, all 38 million people, want to know about that, especially after it was the Prime Minister who signed off on these expenses.

Bill C-525 requires a secret ballot for union certification. If union members wanted to terminate their union certification, that also had to be done by secret ballot. The secret ballot, of course, has always been part of democracy. All members in the House were elected by the secret ballot. Even as we look at electoral reform right now, we all understand it is mandatory to have the secret ballot. That will occur in 2019. I would say that will never change.

How can members of the House of Commons be against a secret ballot? Secret ballot principles exist in provincial legislatures, in my home province of Saskatchewan, along with B.C., Alberta, Ontario, and Nova Scotia. Years ago, some union shop members pressured my members to vote a certain way. We certainly hope that does not happen in the year of 2016.

Members pay union dues, and I think they should have a say in where their money goes and how it is spent. It is called accountability. We expect our union leaders, who are elected by a secret ballot, to be accountable to their membership. As I mentioned, I was part of the union for 39 years. We expected our leadership to come forward each and every month with the financial situation.

I think the biggest losers in all of the talk we have heard today are the ordinary union members who go about their business each day trusting that everything is on the up and up. They are the ones who work hard every day in this country, who do not want to get involved in the union issues because of family, or simply because they are not interested. Yet, they are a union member and are told to pay union dues. They are the ones who are hurt by this bill, because they have a harder time getting access now to certain information. We all need democracy in this system, which includes secret ballots.

We move on to Bill C-525, and it is all about accountability. If the workers are happy with their union, they will support them on a secret ballot. If accountability does not happen, then they have the right to decertify. That should have that opportunity, also through the secret ballot.

Some say that the former government, our Conservative government, was pro-business, and so be it. There is always a balance between business and workers. If treated well by owners, there are no union issues. In my previous career, we had 40 years with the union and not once did we ever lock out, not once did we ever threaten the company. We were always at work. We may have taken a little longer sometimes to get an agreement, but that was the process we wished to have.

If workers are treated well by owners, there is no union issue. Too often, though, in the past, it was the union that pushed the envelope, causing tension between some workers and owners. That is when there are issues that can damage a relationship and cause devastating results. It can essentially cause a business to close. We have seen that in this country. That is when everyone, including the owner and the workers, is the loser. We have seen that with EI going up in the last year.

As I conclude, every day in this country, there are agreements signed between management and unions. Some take longer than others for various reasons. Bill C-4 undermines the secret ballot vote, a cornerstone of our democracy. If the process is good enough to elect us, the MPs, it should be good enough to ratify collective agreement from coast to coast to coast.

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September 26th, 2016 / 4:45 p.m.
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Conservative

John Barlow Conservative Foothills, AB

Mr. Speaker, I am glad my colleague asked that question, because in just about every answer from across the floor we hear that they are working hard to strengthen the middle class and those who are working hard to join it. What about the 125,000 who have just left the middle class in Alberta's energy sector? We do not hear a word about that. Repealing Bill C-4 would certainly not get those people back to work.

Our priority in the House right now should be to come up with ideas and a plan and policy that would attract investment back to Canada. We talked about it the other day. Encana is now investing $1 billion in the oil sector in Texas, not here in Canada. The United States, Australia, the United Kingdom, and France all have similar legislation to Bill C-377 and Bill C-525.

Why are we the one western democracy to be eliminating the opportunity for Canadian workers to have a secret ballot, when our priority should really be finding a way to get those 125,000 Canadians back to work?

CANADA LABOUR CODEGovernment Orders

September 26th, 2016 / 4:45 p.m.
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Conservative

John Barlow Conservative Foothills, AB

Mr. Speaker, I appreciate her question, but I am not on the committee, so I do not want to speak for my colleagues on the committee.

What I can say is that we were quite satisfied, obviously, with Bill C-377 and Bill C-525. There was great support from Canadians. We do not want to see those two pieces of legislation repealed. I do not think there is an amendment to Bill C-4 that we would be in support of because Bill C-4 is repealing two critical pieces of legislation.

I cannot speak for the NDP members, but we heard from our colleagues across the floor that one of the biggest issues with bills C-525 and C-377 was they were private members' bills. I'm really looking forward to seeing those two bills put back into legislation, but maybe through a government bill from the Liberal Party.

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September 26th, 2016 / 4:30 p.m.
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Conservative

John Barlow Conservative Foothills, AB

Mr. Speaker, it is a pleasure to speak to Bill C-4. I have been really discouraged as I have listened to the debate over the past eight or nine months. One of the themes that keeps coming up is that somehow private members' bills are illegitimate and that this is something that we were bringing through the back door.

We did a lot of consultation. Again, I would like to commend my colleague, the member from Red Deer—Lacombe, who put a lot of work into crafting this private member's bill that was passed in the House in a democratic process, through a vote, which I think is a fundamental part of this, that gave workers the opportunity to a secret ballot. It is disappointing that I have heard from my colleagues across the floor that these bills, Bill C-377 and Bill C-525, do nothing more than force unions to bring forward useless financial information and that it is unfair to have a secret ballot.

For a government that campaigned on a foundation of openness and transparency, I find it very ironic that it is now, today, and has been for the last eight months, on Bill C-4, talking about how unfair it is to have a secret ballot and how unfair it is to ask unions to make public their financial information, financial information consisting of a half a billion dollars of taxpayer money that is tax exempt. I think the Canadian people have a right to know how those dollars are being spent, but most important, it is important that the workers themselves know how those dollars are being spent.

My colleague, the member for Carleton, did a phenomenal job of talking about the history of secret ballots and our labour relations program, but what I want to talk about today is what I find frustrating in terms of the priorities of the Liberal government.

Obviously, I come from the province of Alberta. Things are very difficult right now. It is difficult to see that one of the first things the Minister of Employment did when she came into government was to try to repeal legislation that we put forward to ensure that unions had open and transparent government and employees had the opportunity to a secret ballot. Things have only gotten worse in Alberta over that time and I have not seen our employment minister speak once about what is going on in Alberta and some of the things that the government could be doing to try to turn the situation around.

One part of the employment minister's title that has not been stripped from her role is “workforce development”. I think she has an opportunity to change her priorities from repealing what is good legislation to talking about getting Albertans and Canadians back to work. There are probably more than 100,000 energy workers now unemployed and looking for work. These are families who are having a tough time paying their mortgages, putting food on the table, putting their kids in sports, in hockey, and it is only getting worse. Employment insurance claims in Alberta are up 90% over the past year. The Canadian Association of Oilwell Drilling Contractors has said that employment will be down 60%, from 2014 numbers. This is something that is going on across the country. I know we talk about the employment situation in Alberta being dire, that there is an 8.6% unemployment rate, which is the highest it has been in decades, but this is something that impacts Canadians from coast to coast.

It is very unfortunate that we have a Liberal government and an employment minister, specifically, who has really been missing in action on this. Her number one priority is repealing these pieces of legislation. I think that her priority and her focus right now should actually be on workforce development, which is one of her roles. One of those things that we could be doing in terms of workforce development is advocating for shovel-ready projects, things like the northern gateway pipeline, the Trans Mountain pipeline, things that will actually develop a workforce and get these unemployed Canadians, especially, Albertans in the energy sector, back to work.

When the Trans Mountain pipeline comes to cabinet, perhaps next month, will the minister be in that cabinet room? Will she be a voice for Canadian workers? Will she be a voice for Canada's energy sector? Will she be a voice for investment in Canada, or will she be just standing there, missing in action? Will she be a voice for and support the trans-Canada pipeline and get Canadians back to work rather than spending her time advocating for, what I feel, is a very low priority, which is Bill C-4?

I hope she has an opportunity to answer that today on how she will be advocating for the Trans Mountain pipeline when it comes before cabinet next month.

I look at Bill C-4 as a real step backward. Bill C-525 gave Canadian workers a chance for a secret ballot, which is I believe in vehemently. It is a cornerstone, a foundation, of our Canadian democracy. I am surprised that the Liberal government wants to repeal this.

Quite regularly now, the Liberal government is trying arbitrarily to make a change to a fundamental piece of our democracy, including now how we elect our parliamentarians. The Liberals are doing this with, we will say, consultations. They want to make a change to a fundamental part of our democracy without really consulting Canadians through a referendum. Why should we be surprised they would want to make a change to how unions could have a secret-ballot vote when they are going to make that same change to how Canadians elect their government? I find it ironic that the Liberals, piece by piece, are taking away the voice of Canadians.

It also shows, in my opinion, that when we spoke to Bills C-525 and C-377, we had very strong support from union workers. Some of our polling across Canada showed that as many as 86% of those polled supported this kind of legislation. To repeal that with very little if any consultation, I find very disingenuous. I do not think the Liberals have taken the opportunity to speak to union members and to get their feedback on that.

During the election last fall, I spoke to tens of thousands of my residents, and not once did this issue come up as a priority for the people in the riding of Foothills—not once. Certainly I had people talking about creating jobs and ensuring that our economy is strong, but I never had a single person at a door say to me that he or she would like us to repeal bills that encourage openness and transparency and give Canadian workers the opportunity for a secret-ballot vote. I would encourage the members opposite to tell me how often they had that answer at doors.

Bill C-4 is really about eliminating openness and transparency and removing the opportunity for Canadian workers to have a secret-ballot vote, which is a fundamental part of our democracy. To me, it is a cornerstone of what Canada was built on. It just seems backward for us to be taking away that right from Canadian workers.

Parliament is also discussing Bill C-7, which is a similar process for the RCMP. Are my Liberal colleagues on the other side of the floor also saying that they want to deny RCMP members the right to a secret-ballot vote when it comes to their opportunity to form or not form a union? I find this extremely disingenuous.

Looking through some data, what I find the most frustrating about this is that we are taking up some very important time in the House when we could be dealing with more important issues, such as employment and the economy. When we ask Canadians, we hear they support openness and transparency. When we ask Canadian workers, they say they support openness and transparency. However, it seems the only ones who do not are the members of the current Liberal government, which flies against everything they have talked about as we go through this.

The Liberals talked about consultation, which I do not believe has happened with Bill C-4. The more we sit here and talk about this, the more they delay a decision on the Trans Mountain pipeline; the more they delay a decision on the hearings on energy east; and the more they delay a decision on northern gateway, the ratification of the trans-Pacific partnership, and a softwood lumber agreement. On the really important things that the current government should be getting at and doing, it is not acting. The Liberals are spending their time pandering to big union bosses rather than pounding the pavement and helping to create jobs for Canadians who are struggling woefully right now.

In conclusion, I want to assure the residents of my constituency of Foothills that the Conservatives are fighting hard to ensure that they have a voice and an advocate for what they feel are most important: jobs, a strong economy, and their family.

Unlike the Liberals, who seem to think that workforce development is a bit of an oxymoron, we will be a champion for the energy sector, for small business, for Canadian investors, and for our farmers and our ranchers. These are the people who are creating growth. These are the groups and the folks who are creating jobs. It is not the union bosses. That should be the priority.

CANADA LABOUR CODEGovernment Orders

September 26th, 2016 / 4:25 p.m.
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Conservative

Pierre Poilievre Conservative Carleton, ON

Mr. Speaker, I am not familiar with the amendment of which the hon. member speaks, but the basic principle of Bill C-377 was that union dues are tax deductible. Therefore, there is an implication for the treasury, which comes with requirements for transparency. Hence, there is the basic requirement in Bill C-377, supported by the overwhelming majority of unionized workers, that the finances of labour organizations be made public.

However, the member did not address the other half of this debate, which is whether or not a union should be able to take over a workplace without holding a vote to determine that in fact the will of the majority of workers in that unit is represented. I regret that he did not address that point, because I think on that ground the government is in an indefensible position.

If the Liberals feel strongly about Bill C-377, fine, they can introduce a bill to reverse it alone. However, they do not have to eliminate the right of workers to vote at the same time. Therefore, I would encourage the parliamentary secretary to revisit that second issue, because I know that privately he supports the principle of secret ballots. I think he would win a lot of praise if he and his government amended the bill to preserve that principle.

CANADA LABOUR CODEGovernment Orders

September 26th, 2016 / 4:25 p.m.
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Cape Breton—Canso Nova Scotia

Liberal

Rodger Cuzner LiberalParliamentary Secretary to the Minister of Employment

Mr. Speaker, I appreciate the comments and the speech by my colleague across, although I may not agree with much of it.

It is essential to know, for people who follow this debate and these issues, that during the course of Bill C-377, the government said that there is a benefit to unions, because one has to join a union to work on particular sites, and there is a tax benefit, a tax deduction. However, we know that if one wants to practice law in Ontario, one has to be a member of the the Ontario Bar Association and pay to be a member, and that membership is tax deductible. We have a number of lawyers here who are nodding.

If this is about openness and transparency, then let it be open and transparent for everybody. However, when we put forward the amendment to include lawyers and medical professionals, the Conservatives at the time voted against it. Does my colleague not see the contradiction in that? If it is good for the goose, it should be good for the gander.

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September 26th, 2016 / 4:10 p.m.
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Liberal

Ramesh Sangha Liberal Brampton Centre, ON

Mr. Speaker, Bill C-4 would repeal Bills C-377 and C-525, which totally restrict unions from working and having relationships with labour unions and employers. Until Bill C-4 is passed, the relationship between the unions and the employers will not be solid and will not benefit workers. They are not going to work properly. The Liberals feel the relationship should be restored. The balance among unions, employers, and employees must be restored, and Bill C-4 would do that.

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September 26th, 2016 / 4:05 p.m.
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Cape Breton—Canso Nova Scotia

Liberal

Rodger Cuzner LiberalParliamentary Secretary to the Minister of Employment

Mr. Speaker, we saw where the Rand Formula got Tim Hudak last time around.

People who follow the labour movement and issues related to it would know what Andrew Sims, probably the foremost authority on labour relations in our country, has said. The member for Hochelaga talked about the anti-scab legislation. During his last review of the Canada Labour Code, Andrew Sims said that there was an issue that employers and employees could not agree on, which was back-to-work legislation, that the way the current system worked was fine, and that it was not perfect, but it was the best it could be.

There was one thing that came out loud and clear during the hearings on Bills C-377 and C-525. Hassan Yussuff, Jerry Dias, AFL-CIO, and all those who gave presentations from the labour movement and labour relations across the country said that it should be done in a tripartite manner, with employers, employees, and government, not by single one-off private member's legislation. There was a consistency in that testimony.

Does my colleague believe that this is one of the main reasons for repealing these two bad bills? There was no need for these bills. They were a solution in search of a problem. Does he agree that is part of the reason these bills should be repealed?

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September 26th, 2016 / 4:05 p.m.
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Liberal

Ramesh Sangha Liberal Brampton Centre, ON

Mr. Speaker, we recognize the bigger role being played by the unions in our economy and helping the middle class to prosper. The prosperity of the middle class and the Canadian economy depend upon the harmonious balance of that relationship. However, Bill C-377 and Bill C-525 created imbalances in the relationship between the unions, employers, and employees, which would be corrected by Bill C-4. We suggest that Bill C-4 is the only bill that can remedy the problems created by Bill C-377 and Bill C-525.

CANADA LABOUR CODEGovernment Orders

September 26th, 2016 / 3:55 p.m.
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Liberal

Ramesh Sangha Liberal Brampton Centre, ON

Mr. Speaker, it is my pleasure to address the House in support of Bill C-4, which was tabled last January by my colleague, the Minister of Employment, Workforce Development and Labour.

As members know, improving labour relations is one of our government's priorities. I therefore ask all hon. members to support this bill.

The purpose of Bill C-4 is to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act, and the Income Tax Act by repealing the provisions enacted by Bill C-377 and Bill C-525.

These bills force unions to produce useless financial statements and make it harder for Canadians in federally regulated workplaces to unionize. Basically, Bill C-4 is a matter of justice and fairness for the workers affected.

Members know as well as I do that good labour relations are essential in ensuring Canada's economic growth and prosperity. Labour relation legislation ensures some balance between employer, employees, and unions. Our government understands this.

When the previous government supported Bill C-377 and Bill C-525, we opposed them and tried to make the government understand that these legislative measures was unjust and unfair. However, our efforts were in vain. The previous government refused to listen to reason and chose to move ahead, even if it meant jeopardizing the fragile balance that had been achieved in employer-employee relations. We were not the only ones who raised the red flag on those bills.

Bill C-4 is the right thing to do. The purpose of the bill is to essentially remedy this by restoring justice and fairness to Canadian labour relations. Many stakeholders expressed their concern. Overwhelming evidence has been heard on Bill C-4.

The Public Service Alliance of Canada supported Bill C-4, saying that Bill C-377 and Bill C-525 were flawed, were introduced without proper consultation, and were detrimental to the rights of workers.

Further, Bill C-4 is hailed by the Canadian Labour Congress president Hassan Yussuff and the Provincial Building and Construction Trades Council of Ontario for restoring the labour relations in Canada.

Bill C-377 would force unions and labour trusts to declare their expenses, assets, debts, and the salaries of certain individuals. That information would then be made publicly available on the Canada Revenue Agency's website. They would also have to provide details on time spent on political and lobbying activities, as well as any activities not directly related to labour relations.

Thankfully, the Minister of National Revenue has already taken steps to lift these obligations while Parliament examines Bill C-4.

We have to understand that if this information was made public, these measures would put unions at a huge disadvantage to employers.

Bill C-377 unfortunately upset the balance that had existed. However, provisions were already in place to ensure that unions met their financial responsibilities. Section 110 of the Canada Labour Code and many provincial labour relations laws already require unions and employers to provide financial statements.

Bill C-525 would also create a major advantage for management. The bill amended the Canada Labour Code, the Parliamentary Employment and Staff Relations Act and the Public Service Labour Relations Act to change the union certification system.

The traditional card verification system was replaced by a mandatory voting system. Unions are no longer certified automatically, even if the majority of workers have signed a membership card. The rule in existence was clear and well understood. Private sector workers with federally regulated employers could obtain union certification by signing a union membership card.

For example, under the Canada Labour Code, if the majority of employees' signatures were recorded on union membership cards, those cards were sent to the Canada Industrial Relations Board to obtain certification. Even if 35% of the workers were in favour of unionization, a formal vote was taken. However, unions now have to obtain support from 40% of workers before mandatory secret ballot votes can be held.

This system had a proven track record, however, the previous government chose to change things for purely ideological reasons. This double standard is grossly unfair because it makes unionization much more difficult.

We recognize the essential role unions play in protecting the rights of workers and helping the middle class grow and prosper. The prosperity of the middle class and of the Canadian economy depend upon harmonious and balanced labour relations. Bill C-4 has been tabled to redress the imbalances in labour relations created by the previous government.

I sincerely hope that other hon. members will see the benefits of Bill C-4, which would re-establish a balance between the rights and responsibilities of the employers and those of employees. We have a duty to intervene, and we are proud to do so today.

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September 26th, 2016 / 3:50 p.m.
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Liberal

Colin Fraser Liberal West Nova, NS

Mr. Speaker, I congratulate the member on his fine speech.

During the election campaign, I certainly heard in many parts of my riding opposition to what the Conservatives had brought in with Bill C-377 and Bill C-525.

I wonder if the member could highlight some of the reasons he thinks the Conservatives brought that in, why it was so unfair and unpopular with workers, not only in my riding but across the country, and why it is important to make sure that we repeal those bills now.

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September 26th, 2016 / 3:40 p.m.
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NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, it is my privilege to rise today to speak in support of 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.

Bill C-4 is a small step forward. It recognizes the need to respect the rights of hard-working men and women across the country. Since I have been an advocate for the rights of working men and women for many years, it should come as no surprise that I support this legislation.

My colleagues in the NDP caucus and I are happy to see critical rights restored to hard-working Canadians. However, this bill is only a first small step. We worry about the erosion of workers' rights under the previous government. There are so many questions and concerns. We look to the Liberal government to restore each and every one of the rights stolen from Canadian workers.

We also ask the government to update parts of the Canada Labour Code that are about 60 years out of date. One way to rectify this problem would be to act immediately on the recommendations in the final report of the 2006 review of the Labour Code. This is something long overdue. Many of the recommendations would provide much-needed updates and would benefit many hard-working Canadians who work two or three part-time jobs trying to support a family and purchase or maintain a home.

It is amazing that in a few short years we have seen the dismantling of the rights of each and every individual across the nation. These are rights that have taken decades to create and develop. These are rights that protect each and every one of us, especially those who are the most vulnerable.

New Democrats vigorously opposed the former Conservative government's attempts to restrict the rights of unions and to change the rules governing labour relations under the guise of increased transparency. During the election, we committed that an NDP government would repeal Bill C-525, on union representation, and Bill C-377, concerning the supposed transparency of labour organizations.

Bill C-377 was an unnecessary and discriminatory law designed to impose onerous and absurdly detailed reporting requirements on unions. The bill was pushed through Parliament by the previous government despite widespread opposition from a variety of interests, not just unions.

Many people knew there would be negative effects from this legislation well beyond its impact on unions. Many groups and associations represented individuals whose rights they consider important, whether one belonged to a union or not. Those groups included 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 in Canada.

New Democrats agree with the Privacy Commissioner of Canada, who believes that the bill goes against the Canadian Charter of Rights and Freedoms. If this legislation is not repealed, it will almost certainly be defeated in the courts.

New Democrats opposed Bill C-377 at every stage, because the legislation was as unnecessary as it was irresponsible. It corrupted the very ideal of fairness and balance in negotiations between the parties and undermined the fundamental right to free collective bargaining. It was a partisan assault on the men and women who go to work every day to provide for their families.

Canada needs a strong and healthy trade union movement. Unions in Canada have done so much not only for their members but for Canadian society as a whole. When unions are weakened, all working people feel it, and why is that? It is because attacks on collective bargaining do not promote economic growth. In fact, the opposite occurs. Attacks like these promote inequality, not a healthy economy.

The previous government claimed its support of Bill C-377 was based on providing transparency. What it failed to mention was that unions are already required to make their financial information available to their members. The bill represented an unnecessary duplication. It was a solution to a non-existing problem.

On top of this, the bill would have cost taxpayers a great deal of money to implement. The Parliamentary Budget Officer estimated that it would cost much more than the $2 million allocated by the CRA for this level of monitoring. It was estimated that the Canada Revenue Agency would have to spend $21 million over the first two years just to establish an electronic database and $2.1 million each year thereafter. That is ridiculously expensive, especially for something that is clearly redundant and represents unnecessary harassment. The bill should never have seen the light of day, and its repealing just makes sense.

Bill C-4 would also repeal another anti-union private member's bill supported by the previous government, Bill C-525. New Democrats fully support repealing that bill. The bill attacks the fundamental right of association, making certification of new worker associations or unions much more difficult while at the same time allowing the decertification of existing unions to be much easier.

These changes to labour laws were made despite there being zero evidence of any problems with the previous system of union certification.

A union, like any other type of association, exists to provide support and a voice to its members. What right does a government have to meddle in the daily management of any worker association or union? Very simply, it has no right. Such destructive meddling represented more than some childish act of union busting, and the effects would have had an impact on all Canadians.

Whether a person supports unions or not, the fact is that unions have been a driving force in ensuring that all hard-working Canadians, whether unionized or not, receive a basic level of rights, freedoms, and protections.

Organized associations of working people are important to Canadians and the economy. Higher wages negotiated by unions improve the lives of everyday Canadians by injecting 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, and bad fiscal management, and it is bad for the economy.

I join with the Canadian unions that are pleased that the federal government has introduced legislation to repeal both Bill C-377 and Bill C-525.

The president of the Canadian Labour Congress, Hassan Yussuff, has 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, National President of CUPE, echoed those sentiments when he said:

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.

The UFCW said this:

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 also push the government to repeal the previous government's dangerous legislation, also entitled Bill C-4, and not just review it. This contentious Conservative legislation has been called unconstitutional and stacks the deck in the government's favour, undermining fair collective bargaining. Some people claim that the bill turned back the clock almost 50 years, and I certainly agree. A bill this backward needs to be repealed and not just reviewed.

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 much more to do for workers' rights and for 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 to 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.

Bill C-4 is a very good step. However, it does not go far enough, and there are still many questions and concerns. We can and we must do better. Canadians are counting on us.