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

[Alain Rayes, Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, like my Conservative colleagues, I rise in the House today to voice my opposition 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 point of my speech is quite simple: I want to show Canadians and all the hard workers in my riding that the Liberal government's measures are not in the public's interest.

The Liberal government is working instead for special interest groups of which union bosses are members. Just two weeks ago, we learned that union leaders and the Liberal team made arrangements during the last election campaign. Today, in reading Bill C-4, I can see that the Liberals and union leaders are working hand in hand without any regard for the interests of workers or the general public. I must deplore this in the strongest possible terms.

First, by passing Bill C-4, the Liberal government will abolish two flagship pieces of legislation that the Conservatives put in place to protect workers and ensure union transparency. Bill C-377 provided for increased accountability on the part of union leaders by requiring unions to disclose any expenditures over $5,000 and any salaries over $100,000.

Bill C-525 required that a secret ballot vote be held to set up or do away with company unions. These provisions would have put an end to the intimidation that too often occurs during the union certification or decertification process. When employees were called upon to vote for or against the unionization of their workplace, this bill would have allowed them to do so in an informed manner via secret ballot, as is already the case in the provincial legislatures of British Columbia, Alberta, Saskatchewan, Ontario, and Nova Scotia.

Why do the Liberals want to do away with those provisions? Is it not legitimate for the unionization process to be transparent? Simply put, what seems to be common sense for Canadians is not for the Liberals. The fact of the matter is that it only took them a few weeks to forget their promise to be a transparent government.

Second, the Conservatives were not simply advocating for union transparency because it is a fundamental value. We were also advocating for it on economic principle. Every year, deductible union dues cost the federal government and Canadians some $500 million. A responsible government has a legitimate reason to demand accountability for these tax advantages.

A number of other countries, including the United States, the United Kingdom, Australia, Germany, and even France, have long required labour organizations to disclose their financial statements.

Third, because I have a very hard time understanding the government's position on transparency, I wondered whether my Conservative colleagues and I are the only ones who are concerned about these issues. The answer is no. I was pleased to come across a Leger survey from 2013, which indicated that 83% of 1,400 respondents said that they supported a bill like the one the Conservatives passed.

More interestingly, 84% of workers who contribute to a union said that they wanted such a bill to be passed, which is similar to the percentage of Canadians who wanted such a bill to be passed. These percentages therefore confirm the public's position on this issue.

During the proceedings of the House of Commons Standing Committee on Finance, there were many different kinds of groups that supported the Conservative bill.

Among them were the Canadian Taxpayers Federation; the Canadian Federation of Independent Business; LabourWatch; the Conseil du patronat du Québec; Merit Canada; the Montreal Economic Institute; the Independent Contractors and Business Association of British Columbia; the Fédération des chambres de commerce du Québec; Professor Ian Lee of Carleton University; Douglas J. Forer, a partner with McLennan Ross; Moin Yahya, an associate professor with the University of Alberta faculty of law; Francis Donovan, a butcher at Safeway Canada; Marc Roumy, an Air Canada flight attendant; Brian Johnston, a partner with Stewart McKelvey; the hon. Michel Bastarache, a former Supreme Court justice; and Ken Pereira, a union worker and union leader, just to name a few.

That being said, I want to assure my colleagues across the aisle that the Liberals are not the only ones who hold consultations. The Conservatives also held some, which revealed that our provisions in support of union transparency were welcome and desired.

Fourth, it is one thing for the Liberal government to ignore the surveys and the people consulted, whom I mentioned, and to believe that its position is what is best for Canadians. However, another moral principle comes to mind when I look closely at that position, and that is the principle of political independence.

In order to ensure that the government remains impartial and able to make decisions in the public interest and free from outside influences, I think it should avoid associating with lobby groups that have an interest in the business of government. That is certainly not what we are seeing at this time.

Here is how I see it. First, this is a bad law for democracy, transparency, and accountability. Second, it is pretty clear that the purpose of this law is to thank union leaders for their support in the latest election campaign. Third, the Liberal government's very first piece of legislation will take away workers' power just to make union bosses happy. Fourth, this law will not protect workers. It will open the door to workplace bullying because employees will have to state their position on unionization publicly rather than secretly. Fifth, transparency is a fundamental principle, and by overturning the old law, the Liberals are flouting this principle. Sixth, even though the law did not regulate union activities or how unions could use their money, it did provide for accountability. Seventh, unions are the only private organizations that have access to funds that people are required to pay, which is like the power to tax. Mandatory contributions, unlike voluntary contributions, should entail a moral obligation to demonstrate transparency. Eighth, since unions are already required to open their books to their members, it should not cost them much more to open their books to everyone. Ninth, union dues should not be used for purposes not approved by union members.

I did not get into politics to criticize excessively everything the government opposite does. I believe we must work together in the House to make the best possible decisions in the public interest.

That being said, I want to use this last part of my speech to share with the government the way I see things with regard to unionization, which, in my view, represents how a very large segment of the public feels about this as well.

What is more, since the Liberal government keeps saying that it wants to consult various stakeholders and different people and listen to their points of view before making decisions, then I would hope that my thoughts here will be taken into consideration.

First, as the member for Richmond—Arthabaska, the former mayor of Victoriaville, and a former school principal, I have worked and negotiated with a number of union groups on many occasions. These negotiations were always carried out respectfully, and for that reason, my perception of unions and unionized employees is anything but negative.

On the contrary, I believe it is entirely appropriate for a group of individuals with common interests to ask someone to negotiate on their behalf. Essentially, the union's mission is to improve its members' working conditions, and that mission is absolutely valid and legitimate.

However, the comment made by the Minister of Employment, Workforce Development and Labour that unions play a critical role in ensuring that workers receive decent wages and are treated fairly in safe, healthy work environments seems to suggest that the law passed by the previous government undermines the unionization principle and workers' rights, and that is completely untrue.

The minister should also know that just because employees are not unionized does not mean that their rights will not be respected. I am fortunate that my riding is home to Cascades, a family company that has been in Kingsey Falls since 1964 and still employs nearly 11,000 workers in North America and Europe.

Thanks to the management philosophy of the Lemaire brothers, employees of many of the company's operating units voluntarily chose not to unionize because they know that they are afforded favourable working conditions. This company shows that it is not necessary for employees to be unionized to have excellent working conditions. I would like to take this opportunity to commend Cascades and all of the companies across the country that take care of their employees.

Finally, the bill is a direct attack on democracy, accountability, and transparency. It does nothing to protect workers or the public.

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Mr. Speaker, I would like to thank my colleague for his detailed remarks.

I would like to raise a few points about his speech. Many provinces, particularly Nova Scotia, clearly indicated that Bill C-377 was a duplication of existing measures. The extra requirements were therefore unnecessary.

It is also important to point out that seven of the 10 provinces were against Bill C-377. They clearly explained and showed that these measures already existed.

[Alain Rayes, Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, I would like to thank the member opposite for his question.

Just because the provinces are against certain initiatives does not mean that the government cannot move forward. This matter also falls under federal jurisdiction. In this case, I note that the Conservatives' actions during their last term of office did not in any way jeopardize unions or their fundamental purpose. It simply ensured that the Canadian people and Canadian workers would be respected and that union dues would be used to improve working conditions through negotiations with management.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I would like to congratulate my colleague on an excellent speech, especially how he had his facts straight.

The Liberal government likes to pretend that it is fact- and evidence-based in everything it does. We heard today that in multiple polls, more than 83% of union workers were in favour of Bill C-377 and Bill C-525. Another fact is that without Bill C-377, there would be no financial transparency to the taxpayer for the half a billion dollars in tax credits from union dues.

I am interested in my colleague's opinion. Does he think that Bill C-4 is a fact- and evidence-based approach?

[Alain Rayes, Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, I would like to thank my colleague for her question.

I completely agree with her. I searched through all the documentation I had and did not find any justification for changing the law. The bill does not in any way attack Canadian unions and workers. The sole objective of the bill was to ensure that union leaders were accountable for the use of monies paid by Canadian workers. I am still trying to determine the objective of the amending legislation.

[Brigitte Sansoucy, NDP, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I will help my colleague out with his research.

In a letter sent to the Conservatives, the Canadian Bar Association said that the Conservatives' bill violated privacy and constitutional rights. Even the Christian Labour Association of Canada called on the government to withdraw the bill and draft a new version because the bill violated privacy laws and the Canadian Charter of Rights and Freedoms. There were some who said that this was not a good bill.

[Alain Rayes, Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, I thank my colleague for her question.

I want to be clear that I never suggested that everyone agreed on this bill. That is the beauty of democracy. There are some who are in favour and others who are against.

My point was that the government claimed that there was no consultation and that the public was completely against the bill, which is entirely untrue. In a survey, 83% of the general public and 84% of unionized workers who pay dues supported the Conservatives' bill.

The government was elected with 42% of the vote, and it thinks it has the authority to change this law. Since 83% or 84% of the public agrees with the bill, I have to wonder about the legitimacy of this decision.

[Mark Holland, Liberal, Parliamentary Secretary to the Minister of Democratic Institutions]

Mr. Speaker, it is a pleasure to rise to speak to the bill and talk about the restoration of a fair and balanced relationship that needs to exist in a regulatory framework for unions to ensure that workers are provided with adequate protection, and that we acknowledge that the disclosures already in place provide many of the things that the hon. members opposite talked about.

The reality is that the Canada Labour Code already provides for such disclosure, and that under Bill C-377 we are seeing a lot more red tape and are placing unions in a precarious situation of being very disadvantaged through in collective bargaining process. We can see its negatives, but we have not seen any of the positives.

It is no coincidence that the changes in Bill C-4 have been brought forward so early, as they are a recognition of this government's commitment to restoring that balance and fairness that the Prime Minister promised in the last election campaign. I would remind members that the Prime Minister had the opportunity to speak at length about the importance of restoring that balance and it became a very important plank in the last election. Certainly we heard it reiterated in the mandate letter given to the minister.

While I have a great many concerns about Bill C-377 that was adopted in the previous Parliament and which this bill would repeal, I want to focus the preponderance of my comments today on Bill C-525 and the legislative amendments proposed in that bill. Bill C-525 changed union certification and decertification processes under three federal labour relations statutes: the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, and the Public Service Labour Relations Act.

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

Bill C-525 changed that to require that unions show at least 40% membership support before being able to hold a secret vote, and required a vote even when more than 50% of workers had signed union membership cards. It made it easier for unions to be decertified by lowering the threshold to trigger a decertification vote to 40%, compared to the majority support that was previously required. Essentially, Bill C-525 makes it more difficult for Canadian workers to unionize. That is not good for our economy, nor is it good for Canadians.

Unions help address inequality by helping to ensure there are fair wages. They help protect workers' safety and prevent discrimination in the workplace. They also help employers because a fair workplace is a more productive workplace, and a more productive workplace helps to grow our economy and strengthen our middle class.

What Bill C-525 presented was essentially a solution in search of a problem. There were no great rallies on Parliament Hill or even in any boardrooms demanding that we change a union certification system that had worked successfully for many, many years. The card check system, whereby a union is certified by demonstrating majority support for signed union cards, has been used successfully for many years in the federal jurisdiction and in several provinces. A number of unions like Unifor and the Air Line Pilots Association argued that it is fast and efficient and much more likely to be free of employer interference than the mandatory secret ballot system brought in under Bill C-525, which we seek to repeal.

The card check system is not undemocratic. It requires majority support through signed cards, and the Canadian Industrial Relations Board has strong measures in place to ensure that this process is fair. It should also be noted that representatives from both sides of the bargaining table were highly critical of how the previous government brought in these changes. Both bills were brought in as private members' bills without consultation with either employers, unions, or other levels of government. Many argued that it set a very dangerous precedent for the future of labour reform. They are right. That precedent must be expunged. We believe that fair and balanced labour policies developed through real and meaningful consultations with unions, employers, stakeholders, the provinces and territories, and the Canadian public are essential for harmonious labour relations.

Bill C-377 also presents problems that could be averted with proper consultation. Members have heard my colleagues talk about this in great detail, and I alluded to it earlier in my comments.

Among other things, it has the potential to seriously disrupt the collective bargaining process. For example, detailed information about unions, including information on union strike funds, will be available to employers. It seems to me like a blatant attempt to make things harder for unions.

It is essential that we have a system that is both fair and balanced, that the regulations we have in place ensure there is proper disclosure and rules in our labour negotiation process, but that we allow unions to be strong to protect the rights of workers, to ensure that our economy can grow and be productive, and that employers are treated fairly.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I have not had the opportunity to intervene yet with the member. I would like to congratulate him on his election. Obviously I have a different opinion that I have given in this place.

We elect our Speaker in the House by secret ballot. In fact, our constituents elect us as members of Parliament by secret ballot. Why is the government putting forward a bill that would take away the right to a secret ballot by union members? We have seen how it benefits us in this place and in the country in the democratic process. Why would the government take away that right?

[Mark Holland, Liberal, Ajax, ON]

Mr. Speaker, I addressed that in my comments. We had a system and a regime that worked very effectively. There was no one clamouring for the changes that were made. They were made in a way that was incredibly detrimental to the labour movement as a whole.

Having a fair and balanced approach is absolutely essential to the success of our labour market going forward. If we tinker with a system by bringing in the types of changes that are punitive, that create red tape, and that are ineffective, all we do is create more tension between unions and employers and, in fact, undermine the essential role that unions have to play. It is very clear that these changes are required to get us back to the state we were in previously.

[Rodger Cuzner, Liberal, Parliamentary Secretary to the Minister of Employment]

Mr. Speaker, it is great to see my friend and colleague back in the chamber, speaking so passionately and well-informed about this and many other topics.

He took a bit of a hiatus from the chamber. I have a question about some of the testimony that was presented both in the House hearings and in the Senate hearings and about part of a study that was undertaken?

The province of British Columbia has flip-flopped back and forth between card check and secret ballot a number of times. For the past 18 years, it has studied the impact of the card check over the secret ballot. Ms. Sara Slinn, associate professor from Osgoode Hall law school, has been researching this for a number of years. She said that it was intimidation on the part of the employer that skewed the vote in favour of the employer, of non-certification, in the case of the secret ballot. I will read into the record her comments. She said:

In sum, the research evidence shows that there is no support for the notion that votes are necessarily a superior mechanism to cards for determining union representation. Nor does it support the notion that union intimidation or pressure is a substantial phenomenon in certification. What it does demonstrate is that employer interference and, more so, employee fear of employer interference, is a real phenomenon. It's effective, and it's more effective under votes than card-based mechanisms.

Is my colleague familiar with the research done by Ms. Slinn?

[Mark Holland, Liberal, Ajax, ON]

Mr. Speaker, I was maybe making the point at too high a level, but the points made by the parliamentary secretary are very pertinent to the argument.

The problem I have with the assertion that was made by the member opposite in his question was that it cloaked a lot of misinformation in shadows of the truth. We had an incredibly effective system that was working, that nobody was asking to have changed, and the previous government brought forward changes that were incredibly disruptive to labour relations and put unions at a great disadvantage and potentially greatly harmed the collective bargaining process.

Members can obfuscate and try to create these false arguments around principles that do not exist around being more democratic, but it is not true. We have to get down to the core fact. We had a system that worked and was effective for both sides and we need to return to that.

[Ramesh Sangha, Liberal, Brampton Centre, ON]

Mr. Speaker, it is certainly not often that we, in the House of Commons, are called upon to repeal legislation passed by the previous government. However, in this case it is absolutely necessary, and I encourage all members of the House to support Bill C-4.

The reason is very clear. Bill C-377 and Bill C-525 upset the balance in labour relations in Canada, giving employers a distinct advantage over unions. It is unfair, unbalanced and un-Canadian.

For example, let us take a look at how Bill C-377 impacts the collective bargaining process. On one side, we have union representatives trying to negotiate a wage increase, better working conditions or more flexible work hours and so on. On the other side, we have the employer who wants to operate as efficiently as possible in order to maximize profits.

If there is a deadlock in the bargaining, each party has their own tools to break the deadlock. Employers can lock out employees. Similarly, unions can go on strike. It is very clear that they are seen at the collective bargaining table in a truthful manner to resolve the matter.

Bill C-377 amended the Income Tax Act to require labour organizations and labour trusts, including unions, to file detailed financial and other information returns with the Canada Revenue Agency.

That information, such as details on their assets, their liabilities, their salaries and so on is then to be made public on the CRA's website. This means that unions must reveal how much money they have in their strike fund for a possible work stoppage. That means employers can find out how long a union could stay out if it came to a strike.

Under Bill C-377, the collective bargaining system is no longer a level playing field. It gives the employers' side a distinct advantage. By knowing that the union has only a certain amount of funds for a strike or lock-out, they know exactly how far the union can be pushed to accept less in order to avoid either of those eventualities. Does anybody really think that is fair? I do not think it is, and neither does our government.

Let us remember that collective bargaining went well for decades under the previous system.

Bill C-377 also contains other provisions that are equally unacceptable. For example, unions, but not employers, have to report salaries paid to their officers and directors. Unions, but not employers, have to reports time spent by some personnel on political lobbying and non-union related activities.

In addition, the bill duplicates existing requirements under the Canada Labour Code that requires the unions to provide their members with reports on their financials, free of charge and on demand. Similar requirements are also already in place under many provincial labour laws.

The second bill to be repealed, Bill C-525, has been described by my colleague, the member for Cape Breton—Canso, as a solution looking for a problem. That is a very apt description.

First, what the bill changes is the way unions can become certified or decertified. Previously, unions getting themselves certified was not a big problem. Even if 35% of employees signed cards, they had to present this to the Canada Industrial Relations Board to be registered as the bargaining agent.

Unfortunately, we have seen examples of employers that will resort to any measure to deter their employees from unionizing.

What Bill C-525 does in effect is allow employers to know exactly when a union might be trying to organize a workplace union. Even though most employers act ethically to prevent unions from organizing, the point is that employers now have a powerful tool they did not have before to slow down or stop the union certification process.

Prior Bill C-525, when federally regulated private sector workers wanted to organize in a particular workplace, if a majority of the employees signed union cards, they could go to the Canada Industrial Relations Board, show it the cards and the CIRB could certify them as the bargaining agent. This was the system from decades onwards. If less than a majority of employees signed union cards, but at least 35% did, certification could be done.

More generally is the ability to unfairly influence the collective bargaining process.

Canada needs a collective bargaining system, a system that is fair and balanced, a system in which both unions and employers come to the table in good faith to bargain on an equal level.

Repealing the changes made by these two bills would help correct the current imbalance. I hope all my colleagues in the House will give this measure their support.

[Matthew Dubé, NDP, Beloeil—Chambly, QC]

Mr. Speaker, I thank my colleague for his speech. Naturally, we are very pleased to hear that the government will repeal these two ill-conceived laws brought in by the previous government.

My colleague spoke about good faith. Indeed, it is very important for workers to be able to bargain in good faith.

However, although this bill shows some openness towards workers and unions, the Liberals committed to repealing the law regarding sick leave for the public service, but now they are joining the bargaining table with the same agreement and the same negotiator as the Conservatives. Why? This seems like a smokescreen to me. There is no real change in approach.

How does my colleague explain his government's actions?

[Ramesh Sangha, Liberal, Brampton Centre, ON]

Mr. Speaker, if Bill C-4 is passed, it will restore total fairness and balance to the Canadian labour relations system.

The repealing of Bill C-377 and Bill C-525 is required.