Bill C-4 (Historical)

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

This enactment amends the Canada Labour Code, the Parliamentary Employment and Staff Relations Act and the Public Service Labour Relations Act to restore the procedures for the certification and the revocation of certification of bargaining agents that existed before June 16, 2015.
It also amends the Income Tax Act to remove from that Act the requirement that labour organizations and labour trusts provide annually to the Minister of National Revenue certain information returns containing specific information that would be made available to the public.

Canada Labour Code

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, Bill C-4 would repeal Bill C-377 and Bill C-525. It would turn around and ultimately strengthen the relationship with our labour unions across our great country.

As for the words “transparency and accountability”, we have heard for 10 or 12 years all about transparency and accountability and how the government was going to be so transparent and accountable. At the end of the day, it was a major disappointment because the government of the day, the Conservative government, was the complete opposite of transparent and accountable. As a Canadian, I found it a huge disappointment. There was a lot of talk, but what did it deliver? It was the exact opposite.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Madam Speaker, it is fascinating to hear the Conservatives tell us that they are friends of the workers. It is sort of like the crocodile inviting us down to the riverbank to have a luncheon with him.

We saw the attack on labour. We saw the attack on environmental groups. We saw the attack on any organization that was seen as even a potential threat to the ideology of the Conservative government. The attacks it launched against charities, from OXFAM to PEN to birdwatchers, which were absolutely unconscionable, were allowed to happen in the country. I would like to ask my hon. colleague's thoughts on the matter.

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Madam Speaker, it is always amazing, because sometimes we forget just how much damage was being done by the previous government. Our charities are out there actively trying to raise money for a variety of causes and to make a difference in our country, then being attacked, investigated, and fearing for their lives if they ever criticized the government. I cannot tell you how many groups came to see me. They were so afraid of saying anything in case the Conservative government would come after them, whether through CRA or other cases.

That is not the Canada we want, and I am really glad that we have moved on to a new Canada with our new Prime Minister.

[Diane Finley, Conservative, Haldimand—Norfolk, ON]

Madam Speaker, I have a question for the Liberal government. Since it was elected in October last year, the new Prime Minister has promised more accountability, more transparency, and more openness, yet even though he put this in the mandate letters for his ministers and in fact he said, “We have also committed to set a higher bar for openness and transparency in government”, why is it that this, one of the Liberals' first pieces of legislation, in fact, would gut transparency and accountability that was created by legislation that we, as the Conservative government, brought in?

Repealing Bill C-377 and Bill C-525 sends a very clear message: The Liberals care more about thanking union bosses who helped them get elected than they care about the hard-working union members. These union members are the ones whose dues were spent without consultation. Union leaders need to be held accountable, and they need to tell their members and the public how their tax-advantaged income is spent.

Our Conservative government was a strong supporter of accountability. Our Conservative government introduced the Federal Accountability Act and other legislation designed to increase transparency in government agencies and crown corporations. Bill C-377 was simply about transparency requirements that fall upon entities that enjoy public trust and will allow Canada to catch up with other advanced economies when it comes to financial disclosure.

It is important to note that the union funding model itself delivers over $4.5 billion annually to labour organizations in Canada. If individuals work in a unionized workplace, they are required by law to pay dues. If they refuse, they are fired. This financial power alone should be reason enough to require enhanced transparency, and I will say a little more about that shortly.

The workers are forced to make these contributions, including those in my riding of Haldimand—Norfolk. They deserve to know how their money is being spent, as do members of the general public who subsidize this revenue through the tax system.

It should come as no surprise that a Nanos poll found that 86% of unionized Canadians support greater transparency for labour organizations, and a 2013 Leger survey said that 83% of all working Canadians want our union leaders to follow the example set by other nations' union leaders who joined with government to achieve public disclosure. Many of Canada's labour unions publicly supported Bill C-377. This is what Marc Roumy, a member of the Canadian Union of Public Employees had to say:

...many of my colleagues and [I] believe our union would be stronger if we had a truly open and easy access to our union's financial statements. If we have nothing to hide...

—then they should be able to get detailed financial statements, which they have fought for, for years.

If we are looking for support for these measures, look no further than the former head of the AFL-CIO, which is the largest labour organization in the United States. George Meany, who testified at the U.S. Senate union disclosure hearings said:

All of these [transparency] bills are based on...the goldfish bowl theory, the concept that reporting and public disclosure of union finances...will either eliminate or tend to discourage the abuses.... The AFL-CIO firmly believes this theory to be sound.

Even a former Liberal cabinet minister, Jean Lapierre, voiced his support for Bill C-377, stating:

Frankly, I agree with that bill because I think now every organization has to be transparent. The unions, a lot of times, have acted like they were private clubs. And so I think everybody should go to more transparency and I think that the initiative is welcomed by the membership and also by the public at large because why would you hide your financial statements if you get all those tax credits and what have you? So no, I think it's long overdue.

Canadian labour organizations receive over $400 million every year in tax benefits. The union dues are tax-deductible and all revenues are tax-exempt. These tax-exempt funds, drawn from mandatory dues, are funnelled into a wide range of causes, many of which have nothing to do with the collective bargaining process.

Canadians have a right to know how their tax dollars are being used to influence public policy, since, unlike charities, no constraints are put on the political activities of labour organizations. Sadly, unions are able to force employees to pay for the funding of political parties and lobbying activities they do not even support. For example, the president of the Communications, Energy and Paperworkers Union of Canada stated after the vote to merge his union with the CAW, “Can you imagine what it will mean to the CEP, the CAW when we’re the first unionized party that governs a country?”

I think Canadians deserve to know how the so-called super-unions plan to use the hundreds of millions of dollars at their disposal to achieve that end.

Labour organizations, quite frankly, enjoy a more privileged position in our society and economy than any other entity, yet they have no public reporting requirements, unlike charities; publicly traded companies; federal, provincial, and municipal governments; government agencies; boards; crown corporations; first nation bands; foundations; political parties; and MP, senator, and MLA offices.

Bill C-4 also sets out to repeal Bill C-525, which was passed by our Conservative government. Bill C-525 required the holding of a secret ballot for the creation and abolition of trade unions. According to four surveys by Labour Watch, support for secret ballots ranged from 86% to 92% among currently unionized Canadians.

The proposed abolishment of a secret ballot is an attack on the democratic process. All members of Parliament are elected by secret ballot, so why take this away from unionized workers? How can the Prime Minister say this is undemocratic when he and his entire caucus were elected by secret ballot?

The sad reality for many union members is that professional union organizers exert unacceptable pressure on employees, give false information, and will even resort to fraudulently signing cards on behalf of employees in order to get signed cards. Only secret ballot votes can counter such tactics. How can the Liberal government argue that this is what the majority of union workers want?

John Farrell, executive director of the Federally Regulated Employers, Transportation and Communications, told the Senate that “A secret ballot vote is the essence of a true democratic choice and is entirely consistent with Canadian democratic principles.”

What is the problem? What is the issue? The Liberals want to be legitimized, so why are they taking this away? Without any credible rationale, or really any legitimate discussion with union members, the Liberal government is gutting two significant pieces of legislation that were a victory for union members.

Perhaps the motive for Bill C-4 is quite simple. This is an opportunity to repay the union leadership that helped get the Minister of Employment, Workforce Development and Labour, an NDP MLA in Manitoba, elected.

Bill C-4 goes against the principles of transparency and accountability. It goes against the fundamental principle of democracy: the secret ballot. It goes against the wishes of hard-working union members themselves. This is why I will be joining my Conservative colleagues in voting against Bill C-4.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, I would like to know why it is okay for members of Parliament basically to have a secret ballot in electing the Speaker, but the member suggested that the Liberals were elected on a secret ballot. I do not know if that is an inference that voters have to declare their political choice when they go to the ballot box, or that their choices be known. I ask this because all of us had that privilege of being elected via secret ballot, so people did not feel intimidated or did not feel they had to disclose their political choice at the end of the day, but we do that here. One of the member's colleagues passed a resolution in the House of Commons that we have a secret vote for the Speaker.

I would also ask why the Conservatives are opposed to making public the Board of Internal Economy. It hides in a shroud of secrecy, and the public should know. Why is it not proper to have minutes or the recordings of those deliberations open to the public?

[Diane Finley, Conservative, Haldimand—Norfolk, ON]

Madam Speaker, as members well know, every one of us in this chamber was elected by secret ballot. Our constituents go into voting booths behind cardboard frames so that no one can see their vote, and there are measures taken so that the ballot is folded and put into the ballot box without anyone else knowing how that person voted.

That is one of the fundamental principles of our democratic society. In fact, when we voted for the Speaker, we did that with a secret ballot. That was deemed acceptable. That was deemed, in fact, required, to preserve the anonymity of our vote.

What we are saying is that we have given that right to union members. We are asking the Liberal government not to take it away.

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Madam Speaker, I listened with interest to the presentation by the hon. member for Haldimand—Norfolk. In her speech there was a lot of talk about transparency and accountability in explaining why the opposition is against the passage of Bill C-4.

My question really is this. If, at the end of the day, this was such an important initiative when that member was in government, why did the Conservatives not, ultimately, have that initiative move forward as a government bill rather than allowing it to proceed by way of private members' legislation? As a government bill, it would have been subject to greater consultation with labour groups and workers, and all of the kinds of things that they were talking about rather than the government's bringing it forward under the cover of two private members' pieces of legislation.

[Diane Finley, Conservative, Haldimand—Norfolk, ON]

Madam Speaker, I am intrigued this morning by the conflicting statements of the Liberal government members.

First, just bringing forward the bill contradicts everything that the new Prime Minister has been touting about more openness, more transparency, more clarity, more accountability. They are saying, “No, no, take that away, take away that transparency and clarity that was given to union members”, but they are also denigrating private members' bills.

Under our government, more private members' bills were passed than ever before in Canadian history, because we respect the members who want to bring forward those private members' bills. We also had more free votes within our party than any other party ever had, allowing our members to represent the wishes of their constituents.

Now, I notice that the Prime Minister has announced that certain controversial legislation coming forward will be heavily whipped on the Liberal side, the Prime Minister, again, who said that there would be more free votes, as long, perhaps, as they agreed with him.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Madam Speaker, I want to thank the member for helping me understand this more clearly, because I found the debate around this issue very confusing.

We repeatedly hear from the other side that, for some reason, there is something sinister or wrong with democratically elected members passing a bill and that somehow it is wrong or unfair to workers to leave them alone with their conscience when they make a decision.

[Diane Finley, Conservative, Haldimand—Norfolk, ON]

Madam Speaker, I think it is important that we recognize what is happening with Bill C-4.

The Liberal government, despite its claims to want more openness, transparency, clarity, and accountability, is stripping union members of what they wanted. Roughly 85% of union members want financial disclosure; up to 90% want to be able to have a secret ballot.

Why on earth would the Liberal government take away that freedom, that accountability, they claim they want?

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Madam Speaker, it is a pleasure to have this opportunity to speak in support of Bill C-4, which was introduced by the Minister of Employment, Workforce Development and Labour to repeal the legislative changes made in the previous Parliament by Bill C-377 and Bill C-525.

In the broader strokes, this particular bill ultimately aims to restore balance and a fairer approach in labour relations here in Canada. It seeks to restore the balance between employers, workers and, I would note, the government. This is ultimately what I found the most offensive part of the previous two private members' bills that were introduced and passed in the previous 41st Parliament, the notion of actually making sure there was a broad consultative process. From my perspective, because it was introduced as private members' legislation, it did not afford the same kind of opportunity that a piece of government legislation would have done. Had it been introduced by the government, the minister for employment would have been responsible for a broad consultative process with workers, labour unions, and other interested parties. Instead, it was done under private members' legislation.

I listened to some of the earlier commentary that our concern about private members' legislation somehow demeans the value of such legislation. That is not the case. There are appropriate times and ways in which private members' legislation should be brought forth, but there is no guarantee under private members' legislation of the same opportunity for a broad consultative approach that can be done by way of a government bill. For us, the reasons for bringing forth Bill C-4 are not only that it was a campaign platform commitment, but more importantly that of making sure that we do things by way of broadly consulting all Canadians. From my perspective, the former Bills C-377 and C-525 seem to be solutions in search of a problem when there was not a fundamental problem.

The other issue I want to raise is that the fundamental outcome of this legislation being put forward was to freeze labour relations in Canada. At its core, this approach by the previous government was fundamentally flawed. If we are to effectively move our economy forward, we have to bring everyone together, rather than taking the approach of the previous government which sought to divide people. That, again, was at the fundamental heart of those two pieces of private members' legislation.

I would like to use my time today to discuss the details of these two pieces of legislation, why they would be repealed by this government, and what the ultimate impact might be on unions and workers. In turn, this will give Canadians a sense of the benefit of repealing the legislation, as we are proposing under Bill C-4.

Let me begin with Bill C-377. This private member's legislation was introduced by the former member for South Surrey—White Rock—Cloverdale, Russ Hiebert. As I understood it, the purpose of the bill was essentially to force labour organizations and labour trusts to provide detailed financial and other information to the Canada Revenue Agency. That would include things like disclosure of salaries, time spent working on political and lobbying activities, and so forth.

From my perspective, the issue was not so much the disclosure but the fact it would apply only to labour unions. This information was not being required more broadly from other organizations, such as professional organizations. They were not asked to have the same standard of disclosure.

Therefore, from my perspective, that is somewhat problematic. While it might not seem, as framed by the members of the official opposition, that public disclosure is not unreasonable, if we really dig down deep into the particular issue, we will see there are some serious and substantive ramifications with their approach.

First, it creates an extra level of unnecessary and, ironically, by a government that was seeking to reduce red tape, a more bureaucratic process. The kinds of regulatory requirements that would be imposed upon smaller unions to comply with the requirements under Bill C-377 is particularly odious.

As well, the Canada Revenue Agency would also have to share this burden, multiplying the amount of the work the CRA would have to do. As a result, that cost burden would have been ultimately borne by all taxpayers.

The proposed changes were unnecessary because unions were already financially accountable to their members under the Canada Labour Code.

Provinces, in many instances, I believe in seven jurisdictions, indicated that this was also an encroachment on provincial jurisdiction. Many of them felt this legislation was potentially ultra vires of the provincial sphere. I find that ironic coming from that party, which talks so much about the importance of preserving the rights of provinces. This is already being regulated. Therefore, Bill C-377 imposes large financial and administrative burdens on labour organizations and labour trusts that were not ultimately required for others.

While the administrative burden and reporting requirements are significant, it would also have a chilling effect on the collective bargaining process and, potentially, give an unfair advantage to employers at the bargaining table because of the requirements of financial disclosure. For example, because of the nature of those disclosures, information about the strike funds of unions would potentially be available to employers. That same reciprocity does not exist for the unions; knowing the capacity of the employer to deal with a strike situation. As a result, the employer would have the advantage of knowing how long a union member might be able to be sustained in a strike position. It was not ultimately a function of an even application of so-called transparency in Bill C-377.

This brings me to Bill C-525. This was, of course, a private member's bill that was introduced by the current member for Red Deer—Lacombe. The bill basically attempts to make changes to the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, and the Public Service Labour Relations Act, which ultimately affects how unions are certified and decertified.

In a nutshell, that legislation was an attempt to make it more difficult for unions to ultimately get certification. It was not just problematic for unions, but also imposed some serious burdens on others as well. For example, there were real potential implications for a number of agencies, including the Canada Industrial Relations Board and the Public Service Labour Relations and Employment Board. These boards would have had to bear the additional administrative cost and logistical responsibilities in holding representation votes.

Under these changes, rather than under the CIRB's previous requirement to hold a vote to certify a union in roughly 20% of cases where less than a majority of workers have signed union cards, ultimately this would have meant a fivefold increase in work. Therefore, these bills are not a contribution to labour relations in Canada.

At the end of the day, these two pieces of legislation have done more harm to the nature of labour relations in Canada and they need to be repealed. I welcome the debate on this subject.

[John Barlow, Conservative, Foothills, AB]

Madam Speaker, I am pleased the member explained a lot of why the Liberals put forward Bill C-4. He clarified a lot of the confusion.

He was pretty clear that accountability and transparency was great as long as it was easy. However, as soon as it was a burden on the CRA or the unions, then there would be pull-back on that. This explains a lot about the Liberals' platform moving forward in the last 100 days.

My colleague talked about how this would help move the economy forward, if we eliminated transparency and accountability, secret ballots, and those kinds of things. Does the member feel that eliminating the democratic process of secret ballots is somehow going to help unions and the government move the economy forward?

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Madam Speaker, I share a common commitment with my friend, the member for Foothills. We both had the privilege of entering this place at the same time.

For me, the fundamental issue with respect to transparency and accountability was the nature in which the legislation was ultimately brought forward. It did not allow for broad consultation. It ultimately had the impact of actually chilling or making more difficult the nature of Canada labour relations.

When we are not all pulling together, unions, employers, workers, and government, at the end of the day we are going in opposite directions. That is not how we ultimately bring the Canadian economy forward.

If this were an important issue of openness and transparency, the Conservatives should have taken a fulsome approach of consulting with all the affected partners in this situation so they could have had that appropriate input, and everyone could have bought in to their scheme.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, I know that in my time in the riding, as I was knocking on doors during the campaign and after becoming the member for that area, I heard again and again from unions about their concerns, about their wanting to see these bills removed.

I am very happy to be standing here today saying that I will support moving in this right direction. However, there is still more work to be done.

For promised labour policy reform, will the Liberal government commit to reinstating a fair minimum wage in federally regulated sectors? I would like to hear the member's thoughts on this.

[Arnold Chan, Liberal, Scarborough—Agincourt, ON]

Madam Speaker, I am glad the third party will be supporting our position on Bill C-4. This was an important situation where we felt that the approach of the previous government was inappropriate and that we needed to have a restart in our relationship with organized labour.

As to the member's substantive question on the minimum wage, the member knows well this party's position. We supported the motion put forward by the NDP with respect to this.