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 bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

MaryAnn Mihychuk  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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.

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

May 17, 2017 Passed Motion respecting Senate amendments 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
May 17, 2017 Passed Time allocation for 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
Oct. 19, 2016 Passed That the Bill be now read a third time and do pass.
Oct. 18, 2016 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “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, be not now read a third time, but be referred back to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities for the purpose of reconsidering clauses 5 to 11 with a view to preserving provisions of the existing law which stipulate that the certification and decertification of a bargaining agent must be achieved by a secret ballot vote-based majority.”.
March 7, 2016 Passed That the Bill be now read a second time and referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.
March 7, 2016 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-4, An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and the Income Tax Act, since the bill violates a fundamental principle of democracy by abolishing the provision that the certification and decertification of a bargaining agent must be achieved by a secret ballot vote-based majority.”.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11:45 a.m.


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Liberal

Scott Simms Liberal Coast of Bays—Central—Notre Dame, NL

Madam Speaker, I thank all of my colleagues who have spoken on the bill thus far.

This exercise is not so much about outlining the vision of the legislation that we have before us, but about untangling what has been tangled before. Therefore, we now find ourselves in this position where we are taking back two particular bills.

I will not specifically address the issue of private members' bills and how they are being used, whether for nefarious reasons or not. Personally, I respect private members' bills, no matter what they are. They are from a member and there is a reason they exist. However, I would like to attack these particular bills based on their policies and how they are unfair in this context.

Bill C-377 and Bill C-525 were bills that I did not support from the beginning. Therefore, we need to undo what has been done in order to proceed any further, and Bill C-4 would do just that.

Both Bill C-377 and Bill C-525 passed without the extensive consultation process traditionally used for labour relations law reform. This is what we call the tripartite way of doing things. We have the government, the union and organized labour and, of course, we have the employers, all of which need to be consulted on something as important as this, because it affects so many Canadians across the country. Changes to labour relations legislation has always been preceded by this.

I have two examples of how this was done. I would like to bring these examples to the House because they illustrate the way things should be done using the tripartite process.

In 1995, the Sims task force did extensive public consultations on part 1 of the Canada Labour Code, and included labour, employers, and government stakeholders. The name of the report is “Seeking a Balance”, which formed the basis of major changes that came into effect in 1999. Going further back to 1978, the second example I would like to use, was the Woods task force, which was another tripartite consultative process. It was used to bring about change to the federal industrial relations system.

However, with Bill C-377 and Bill C-525, there was not much consultation. I am not sure of all the work that the members did in response to these two bills, but I would assume that the opposition during the committee process both here in the House and in the Senate illustrates that a lot of consultation did not take place in this tripartite manner.

I will go to the part where the bill talks about some of the other non-labour practices of the former government. Of course, in many situations the Conservatives went against many of the unions and organized labour, and a result caused a very poisoned atmosphere over the past while. Whenever we heard the government talk about big union bosses and the like, it created a stir among organized labour and many governments, both provincial and here in Ottawa.

Here are some of the rules the Conservatives brought in: a requirement to provide information on the time spent by officers on political lobbying, which would then be made publicly available on the Canada Revenue Agency's website; and an obligation on unions to provide their financial statements to their own members for free and when they are asked for it.

This was almost a situation where the Conservatives wanted to create a solution to a problem that did not exist. They did so without the right amount of consultation and, as a result, neglected to see some of the steps that had been taken over the past 20 to 25 years by organized labour, employers and the associations they are represented by.

Bill C-377 was directed solely at labour organizations, and that was quite evident during the evidence that was given here in the House and in both House and Senate committees. It was directed at labour trusts and not at any other professional associations, which, by the way, benefited from similar treatment under the Income Tax Act, but they were not specifically told to be more transparent as well.

As hon. colleagues will recall, the Minister of National Revenue has waived the reporting requirements for 2016 in Bill C-377 knowing that we intend to work to repeal the bill.

I will go back to the debate that took place, before we get into Bill C-4. When Bill C-377 went to the Senate, a colleague of ours by the name of Hugh Segal, a Conservative senator at the time, was vociferously against the bill, to the point where he had brought amendments that were accepted at the time. I will read an editorial he did after retiring from the Senate about how he was against Bill C-377 and its fundamental principles. I will quote from his editorial:

The Canadian Bar Association questioned its constitutionality, as it sought to circumvent normal provincial jurisdiction over labour relations and trade unions by imposing Canada Revenue Agency reporting requirements via federal statute.

There he talked about the constitutional crisis that had been raised by this particular situation. We can question the constitutionality of the bill as defined by the powers directed by the provincial governments and the federal government, which are laid out quite clearly.

Former Conservative Senator Hugh Segal went on to say:

There was also the issue raised by many witnesses before the committee that reporting relationships for small expenditures being imposed on unions and union locals were not being imposed on other corporate or charitable/not-for-profit groups.

We saw this in the House of Commons testimony as well, when witnesses talked about how the same onus was not put on other associations to divulge or make transparent the activities they do and the contributions they receive, including from whom, which really would have created a balance.

The imbalance during labour negotiations was also talked about and mentioned in Hugh Segal's article and the point was made that information would be divulged by local labour organizations to the point where it would put them at a distinct disadvantage in certain negotiations.

I want to thank him for doing that, because I thought that in earnest he had put together some very viable amendments. Let us face it, like every bill of this size, there are good points and there are bad points, but Conservative Senator Hugh Segal attempted to make amendments. I should not say “attempted”, because he actually did make them. His amendments were accepted by members of the Senate, and then the bill was sent back here to the House for it to address it once more with those fixes in place. The House was prorogued.

Here, I know that everyone is just waiting to hear how this works, right? It is that type of day.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11:45 a.m.


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Conservative

Larry Maguire Conservative Brandon—Souris, MB

Madam Speaker, that is the hub of what we are talking about here in this debate on Bill C-4, brought forward by the member for Kildonan—St. Paul.

It is very true that the intimidation that I spoke about in my own remarks here is exactly why they need to have a secret ballot. Under the old mechanisms, a 35% sign-up gave them a union, but they had to have 50% to decertify a union. My colleague brought in Bill C-525, one of the first bills that I had the opportunity to speak to in this House. We levelled it at 40% either way, and that does still not even require half. It is a very fair piece of legislation that was on the books, and that is why I make the comment and the point that the Liberals are trying to fix something that is not broken.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11:35 a.m.


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Conservative

Larry Maguire Conservative Brandon—Souris, MB

Madam Speaker, I rise today to speak against Bill C-4, which would roll back the rights of hard-working union members and repeal transparency legislation that finally allowed some sunshine to be let into the financial ledgers of opaque unions.

I respect the Minister of Employment. I have had the pleasure of getting to know her over the past 16 years and enjoyed the time we spent together in the Manitoba legislature. I remember that my hon. friend and her NDP colleagues at the time introduced a similar bill in 2000 and rammed it through the Manitoba legislature, a bill that massively favoured the interests of union elites and took away the ability of union members to stop their union dues paying for their union bosses' political agendas.

I also noted her comments in the House about how Bill C-4 would improve Canada's economy. I only pray that her now Liberal government does not increase Canada's debt by over 500% as her former NDP colleagues have done in Manitoba since her days in government. It is also interesting to note that at that time, former Liberal MP Jon Gerrard and leader of the Manitoba Liberal Party not only spoke against this legislation but he voted against it as well.

Today I want to talk about three things: first, the flawed motivation the Liberals have for introducing this legislation at this time; second, the importance of a secret ballot as a pillar of our democratic institutions; and third, the principle of fairness for certification and decertification.

The timing of this legislation leads me to believe that the new Liberal government is on manoeuvres. The fact that even the Liberal minister who introduced this legislation admitted that the bill was quickly tabled leads me to believe that ulterior motives are behind it.

It is too easy to just assume that this legislation is a reward for all the unions that backed the Liberals in the last election. Not even the Liberal government would change the law to remove mandatory secret ballots for union workers as a quick “thank you” to the unions that actively and publicly supported them but also spent thousands upon thousands if not millions of workers' dollars attacking the Conservative Party.

The big issue here is not Bill C-4 itself. It is not even Bill C-5, the bill the Liberals introduced next to settle their union debts. We have to look at the big picture here. It is not just that the Liberals owe some of their election victory to the thousands of workers' dollars the union spent against us, it is that the Liberals are using the rights of workers across the country as a bargaining chip, literally.

The lightening speed of the bill's introduction can only be explained by the looming spectre of collective bargaining the Liberals have coming with their own public service unions. Quite simply, they are trading the rights of hard-working Canadians in the hope of a smoother ride at their own negotiating table. It leads me to ask: did the Liberals care about union rank and file or only about making their own lives easier? It is clear that the Liberals are introducing this legislation for their own ends and not to solve a problem that actually exists.

This leads me to my second point: the importance of the secret ballot as a democratic principle. Each hon. member in the chamber is here today because residents in their ridings chose to give them the most personal thing they possess, their vote. We have no higher duty in our role as members than to safeguard the democratic principles that hold our country together. The secret ballot is the highest pillar of this process. It seems absurd to me that a member of the House could get up and argue that we need less voter protection, that we need less transparency, that we need less democracy. It seems absurd to me that a member of the House could get up and argue that we need more secrecy, that we need more union intimidation, and that we need more power for big union bosses.

The Liberals are creating a problem that does not exist. Nobody is banging down my door, nobody is calling my office, and nobody is emailing me saying they want workers to be stripped of the right to a secret ballot. Even the national president of the Public Service Alliance of Canada Robyn Benson said so much herself when she testified in committee in 2014, “Contrary to what you may have heard, PSAC has no issue with voting by secret ballot. We do it regularly to elect our officers, ratify collective agreements, and vote for strike action, as examples.”

The old card check system allowed for a workplace to be unionized without letting all employees have their say. In fact, unionization could proceed with a significant portion of the workers having no idea unionization is even going on.

As many of my hon. colleagues will know from their experience in electoral campaigns, candidates often spend their time going door to door, asking for support of their friends and neighbours. Most say yes. Sometimes they mean it, and sometimes they just want them to get off the porch or do not feel comfortable saying no to their face. It is a good thing that candidates cannot force people to vote at the door when they are canvassing; otherwise, the potential for voter intimidation would be disturbing, indeed. It is a good thing we have a secret ballot vote later to decide who the MP will be.

The former card check system, without a mandatory secret ballot, was ripe for intimidation, intentional or not. In this system, workers could be pressured by unions or their colleagues in the signing of a union card. I ask colleagues to imagine what it feels like in a workplace full of tension, where a worker is on the fence about joining a union but is bombarded by peer pressure from all sides.

The only true way to safeguard the rights of these workers is to let them express their true wishes through a vote, and the only way to do this properly is through a secret ballot. This notion enjoys widespread support across Canada and 5 of 10 Canadian provinces have mandatory secret ballot vote legislation. The Liberals have absolutely no good reason to get rid of this vital check.

Finally, let me now turn to one specific detail in the bill, that which deals with the number of votes it takes to certify or decertify a union. Before Bill C-525, it took the signatures of 35% of the bargaining unit to trigger the process to certify a union, while it took 50% to decertify it.

Bill C-525 is grounded in the core principle of creating an equal and fair playing field for supporters and opponents of unionization. We believe that it should be up to the workers to decide, not the employers, and not the union bosses. This was achieved by setting the bar for both certification and decertification processes at 40%; a wholly reasonable number to trigger a vote that necessarily involves wide-ranging consultation.

Now, the Liberals are trying to narrow the circle of people that unions and employees need to involve to make decisions; ultimately, making the process less democratic.

The bill is all about narrowing the democratic legitimacy of unions and scaling back the rights of workers to select their representatives and to determine their own fate. It is truly an affront to democracy for elected members of this chamber to demand that other institutions in their country be made less democratic, that they be made more exclusive.

As the representative of the residents of Brandon—Souris, I cannot support the legislation. It is clearly designed to settle Liberal debts to unions from their last election campaign, to strip workers of their right to a secret ballot, and to create an uneven playing field for workers to determine their own fate.

I encourage all members of this House to vote against the bill.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11:30 a.m.


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Liberal

Kyle Peterson Liberal Newmarket—Aurora, ON

Madam Speaker, accountability is already there. Again, this is not a real argument. The accountability mechanisms in Bill C-377 go above and beyond anything that is reasonably necessary. I wonder why he thinks union members should have more accountability than members of Parliament when it comes to reporting their expenses.

As for a free vote, whether this is a free vote or not, I am happy to vote for Bill C-4. I welcome all the members opposite to have a free vote and join me in supporting Bill C-4 and helping unions prosper in our great economy.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11:30 a.m.


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Liberal

Kyle Peterson Liberal Newmarket—Aurora, ON

Madam Speaker, I want to thank the member for the question, and I also want to thank her for welcoming me to the House and congratulating me on my speech.

Of course, that is an important issue, and people have a right to know where taxpayer money goes. The point is that the legitimacy, the transparency, and the openness are already there. The old bills create no new mechanisms. Reporting requirements were already there. All they do is make it harder for unions to operate and less likely that they will be able to thrive in this economy. That is the purpose of repealing these bills. I am happy to support Bill C-4. At the same time, we are supporting openness and transparency.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11:15 a.m.


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Liberal

Kyle Peterson Liberal Newmarket—Aurora, ON

Madam Speaker, I am honoured to rise in this House to speak in support of Bill C-4, and with it the repeal of Bill C-377 and Bill C-525. Bill C-4 is an important step forward and yet another example of this government following through on our promises.

Before I begin, I want to acknowledge that this is my first time rising in the House to speak in debate since being elected by the great people of Newmarket—Aurora. I want to thank the voters who placed their trust in me to represent them here in Ottawa.

I also want to thank the hundreds of volunteers who supported our campaign during the election. As a long-time resident of my community, I am truly honoured by this. I particularly want to thank my wife Andrea, and our two sons, without whom the success of the campaign would not have been possible.

I look forward to working with all members in this House in an effort to accomplish great things for our great country.

There is an important topic in front of us today, and that is Bill C-4. This government recognizes the important role that unions play in protecting the rights of Canadian workers and in helping to ensure a strong and prosperous middle class. Bill C-4 is an integral step to ensuring Canada's labour laws best foster positive and productive working relationships between employees and employers, an approach that strives for balance. If we look to Bills C-377 and C-525, the Employees’ Voting Rights Act, it is clear that balance was not the objective.

What is also clear is that a number of legitimate concerns were raised by stakeholders, which were ultimately ignored by the previous government. While it rushed to pass these bills just before the election for partisan gain and as a tool to punish unions, Bill C-4 would go a long way to restoring the fairness and balance that was lost under the previous bills. Not only did the legislation diminish and weaken Canada's labour movement, it was also counterproductive to ensuring a positive work environment. The bills were political gimmicks used for partisan gain and nothing more. They addressed no pressing problem, no great evil, and merely duplicated much of the legislation found in the Canada Labour Code and provincial regulations. We campaigned, and rightfully so, on repealing these hyperpartisan acts, and today we are closer to doing so.

It was clear from the beginning that Bill C-377 would create an unnecessary advantage for unions during collective bargaining, while Bill C-525 would make it more challenging to unionize and much easier for bargaining agents to be decertified. This meant that union members already facing challenging conditions when going through the collective bargaining process would have to tackle even more red tape and more uncertainty. This government wants to eliminate the unnecessary red tape and allow Canadians access to the kind of productive, positive working relationship between employees and employers that unions strive for and Canadians deserve. We will accomplish this through Bill C-4.

After the introduction of Bill C-377 by the last government, a number of high profile organizations were vocal about their opposition to it, including the Canadian Bar Association, the association representing police unions, and the federal Privacy Commissioner, to name a few. These organizations argued that Bill C-377 is ultimately an invasion of privacy for the significant number of people falling under its broad reporting requirements. Through several well-crafted and thoughtful, albeit ignored submissions, the Canadian Bar Association warned that this bill interferes with the internal administration and operations of a union, which is likely prohibited under the constitutional protection of freedom of association. Many provincial governments and employees agree, and the Alberta union of public employees launched a constitutional challenge against the legislation.

Beyond the likely unconstitutionality of Bill C-377, it would also be impractical to administer, including the high cost this would place on the Canada Revenue Agency to process the increased volume of disclosure. Though it is always easy to increase regulation or create more red tape, the costs, whether to the organization, or in this case to the government agency, can be significant and should not be overlooked. This is yet another reason to repeal this bill.

While the Conservatives wanted to increase the number of hoops for unions and their members to jump through, this government is committed to eliminating them.

To say that these bills were not a highly partisan move by the previous government would be false. All we need to do is look back over two years ago, when on June 26, 2013, a Friday afternoon just days before the summer recess, 16 Conservative senators broke ranks and voted to gut Bill C-377 and send the amended legislation back to this place. Parliament was prorogued before members of the House could deal with it, sending it back to the Senate without any changes. It took another two years before the long reach of the former PMO finally managed to accomplish what it set out to do in the first place and the law came into force.

Aside from the large number of organizations that were quite vocal in their condemnation of Bill C-377, a number of provinces, seven to be exact, also stood in opposition to it. These provinces already implement strong and important requirements for financial disclosure among the unions. Duplicating these measures not only encroaches on the jurisdiction of these provinces but also creates undue adversity for unions. Above and beyond these duplications, Bill C-377 also goes a step further and requires labour organizations to disclose more information than required of any other organization. This unfair treatment would ultimately have severe consequences on how unions operate in serving their members. Our government wants to protect the role of the union on behalf of the hundreds of thousands of Canadians who rely on them. Unions are a legitimate part of the Canadian economy and its social fabric.

Bill C-4 recognizes the concerns that were raised months and in some cases years ago, and addresses them by allowing the provinces to continue their work in their jurisdiction. Bill C-4 would also ensure that labour issues are free of the potential breaches of individual privacy rights that were so obviously threatened by Bill C-377. The provinces play an important role in securing the transparency and accountability of unions, and through the imposition of Bill C-377, labour units are thrust into unfair circumstances that make it challenging and sometimes impossible to be compliant.

Bill C-4 would clean up the mess that Bill C-377 left behind. It would restore balance to existing relations between unions and employers. It would get rid of the duplication of reporting requirements. It would remove the discriminatory nature of Bill C-377, and it would uphold the privacy of all parties.

This government has also been steadfast in its position on how best to rebalance the rights of workers and employers in Canada. Bill C-4 will be a welcome relief to the past government's back-door nature, exemplified by Bill C-525, a private member's bill that had no stakeholder consultation whatsoever yet will wield significant impact.

Bill C-525's impact spreads deep, from the way unions can form to how they operate, and ultimately whether or not they can decertify. Bill C-525 put in place a requirement for a majority secret ballot vote by employees before any bargaining unit can be certified or decertified, a clear and obvious attack on unions by the previous government. By changing these thresholds under Bill C-525, not only did the previous government make it harder for bargaining agents to be certified, it made it easier for a bargaining agent to be decertified. Bill C-4 will go a long way to re-establishing a positive working relationship between employees and employers to allow for a more efficient, quicker process. Through the repeal of Bill C-525, I am proud to say that the certification process will be more efficient and more likely to be free of employer interference.

This government will work hard for the rights of workers and employers across Canada, and Bill C-4 is the first step in rectifying the partisan attacks on hard-working Canadians by the past government.

I am pleased that I have had the opportunity to discuss such an important bill, which affects over 18,000 labour entities in Canada, including locals found in my riding of Newmarket—Aurora. This government stood before Canadians last October and made a commitment to voters that if the Liberal Party formed government, Bill C-377 and Bill C-525 would be repealed. Well here we are, a little over 100 days later, doing exactly that. This is a government that believes in bargaining in good faith and that unions play an important and legitimate role in the success of our economy. I am proud to have this opportunity in the House to defend those rights and look forward to a productive and respectful working relationship with labour unions moving forward. I urge all members to do the right thing and support Bill C-4.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11:15 a.m.


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Liberal

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.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11:10 a.m.


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Conservative

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?

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11 a.m.


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Liberal

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.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 11 a.m.


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Conservative

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?

Canada Labour CodeGovernment Orders

February 16th, 2016 / 10:55 a.m.


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Liberal

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.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 10:45 a.m.


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Conservative

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.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 10:45 a.m.


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Liberal

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.

Canada Labour CodeGovernment Orders

February 16th, 2016 / 10:40 a.m.


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Liberal

Francis Drouin Liberal Glengarry—Prescott—Russell, ON

Madam Speaker, one of the questions and comments that we continually hear from the official opposition across the aisle is that there is no broad support by the membership for unions. I can assure the House that I have not received one phone call, one email, or any correspondence against Bill C-4.

I would like to ask if my hon. colleague could comment on that. Has she received any correspondence from her constituents against Bill C-4?

Canada Labour CodeGovernment Orders

February 16th, 2016 / 10:35 a.m.


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Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Madam Speaker, I listened with interest to my colleague's comments. Her comments that struck me the most strange were her repeated references to the back door, referring to members of Parliament using private members' legislation to advance a cause that is important.

I have had the privilege and honour of having two pieces of private members' legislation passed in the House in the last 10 years, and at no time did I or any of the people supporting my initiatives consider the method I used as back door. It is demeaning to every member in the House to consider private members' legislation a back door. This is the basis of our democracy in Canada, and it is a real disservice to have repeated references to this as a back door by the member and the previous member.

Let me get more to the point of Bill C-4 and what it would do in terms of repealing some of the initiatives that our government undertook. In terms of accountability, we know, just recently during the election, that there were a number of times when the Liberal government actually had unions pay their members to come to announcements. I do not believe that most of the union members were aware of that. The bills we put forward to enact more transparency would have addressed that.

Why does the member think it is not important for union members to know how their dollars are being spent?