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

[Tracey Ramsey, NDP, Essex, ON]

Madam Speaker, it was estimated that Bill C-377 would cost the Canada Revenue Agency approximately $21 million to establish the electronic database over the first two years and approximately $2.1 million per year for subsequent years. Our cost estimates were much higher on the cost of implementing these new requirements, not to mention the astronomical number of hours that would be wasted by each labour organization in order to comply with these regulations.

The member mentioned that she was a former union member. We all know that money from many labour organizations goes into our communities to fund wonderful things that fill in the gaps where money does not exist from the government or other levels. Could the member please highlight some of the differences that union contributions have made in her community?

[Monique Pauzé, Bloc, Repentigny, QC]

Madam Speaker, I cannot thank the member enough for raising this issue.

I was a member of a union of teachers and educational support staff. In 1989, we established a network to protect the environment and help create environmentally friendly schools that worked on ecology, pacifism and solidarity. That is an example of what unions do.

Also, in unionized companies affiliated with the FTQ, committees promoting French are created to help workers. My colleague is quite correct. Unions promote greater respect for workers and greater social justice.

[The Assistant Deputy Speaker, Carol Hughes]

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Drummond, Official Languages; the hon. member for Jonquière, Human Trafficking.

[Kerry Diotte, Conservative, Edmonton Griesbach, AB]

Madam Speaker, there has been a lot of talk about support for unions and so forth. I grew up in a union town, Sault Ste. Marie, Ontario. My dad was a union executive, and I was very proud of him, and I was a union member myself. I find it rather offensive that just because I am a Conservative and particularly a fiscal Conservative that somehow I am anti-union or we are all anti-union. We have to realize that is just a red herring.

I am pleased to rise in this House today to stand up for good hard-working Canadians, including union members, and speak against Bill C-4. I believe, as do my Conservative colleagues, that transparency and accountability are the pillars of our policies. In fact, it was our former Conservative government that created the Federal Accountability Act, and we did not stop there. As well, we created and passed legislation to ensure unions were accountable to their members and to all Canadians. Bill C-4 would threaten accountability and transparency in labour negotiations and labour relations. All Canadians should know where their money goes and be entitled to accountability.

The member for Kildonan—St. Paul told the House the legislation reflects the Liberal government's “commitment to restore a fair and balanced approach to labour relations in this country”. However, in fact this bill would remove the balance struck between big union bosses and Canadians. Bill C-4 perhaps would better reflect the uncomfortably close relationship between the Liberal government and union bosses.

I would like to review the content of both bills that would be repealed by Bill C-4.

We are looking at Bill C-525. Bill C-525 addressed the concerns the union members themselves had with the previous card check system. The card check system allows for a workplace to be unionized without allowing all employees to express their opinion. In fact, the unionization of a workplace could occur without a significant proportion of the bargaining unit having been made aware. That is just wrong. In the current system, if a certification drive were to be conducted for a bargaining unit of 100 employers and the union were able to obtain the signatures of 51 members, the bargaining unit would be certified. There is not a requirement for the remaining 49% of members to be notified that a unionization drive is even taking place or to be given the opportunity to express their opinions or opposition. That is just wrong. The card check system is susceptible to abuse wherein workers could be pressured by unions and/or their colleagues into signing a union card. A secret ballot vote allows employees to provide an honest and accurate indication of support, free from the threat of pressure or intimidation from both unions and employers.

Now let us look at Bill C-377. It also took steps to improve transparency with union funds. Previously, labour organizations that enjoyed substantial public benefits were not required to publicly disclose their financial activity. Labour organizations operate tax-free, and their members receive full income tax deductibility for their dues and payments, and receive their strike pay tax-free. Dues deductibility alone costs the federal treasury in the range of half a billion dollars a year. That is a staggering amount of money. Financial transparency occurs in institutions receiving substantial public benefit. This is not a new concept. Bill C-377 addressed this gap in financial accountability, extending transparency to unions. In short, the bill required that every labour organization in Canada file a standard set of financials each year, which are posted on the CRA website, much like Canadian charities already do. It was not radical legislation.

It is a fact. Canadians, union members, stakeholders, and at least members on this side of the House, support transparency and accountability.

Let me share some of the widespread support that these bills have received.

With regard to Bill C-525, in a news release from April 2014, the Canadian Federation of Independent Business welcomed its passage, stating, “secret ballot votes are a cornerstone of our democracy”. I think virtually anybody in Canada has to agree with that statement.

A poll commissioned by the Canadian LabourWatch Association found that 86% of unionized or formerly unionized workers supported secret ballot voting for union accreditation. Canada is the only country in the industrialized world that forces union dues upon workers.

Further, in his testimony before the Standing Senate Committee on Legal and Constitutional Affairs, John Mortimer, president of the Canadian LabourWatch Association, expressed support for Bill C-525, making the following points:

Since 1977, six provinces, including Nova Scotia, British Columbia, Alberta, Ontario, Saskatchewan, Newfoundland and Labrador, have established laws guaranteeing secret ballots for union certification. The secret ballot is statutorily guaranteed for the majority of Canadians. This type of secret ballot has not caused unions to disappear, not even in Nova Scotia, where it has been in place since 1977. The rate of new unionizations is lower than before and reflects what informed employees are making as a private choice. That is what they want.

Sometimes employees are victims of inappropriate tactics and given wrong information to get them to sign a membership card. That is just wrong. For example, we know that some employees sign their card without knowing the true result, which is the unionization of their workplace. With regard to timelines for holding secret ballots, seven Canadian jurisdictions do not set timelines for votes.

Now, Bill C-377 also received significant support. I will highlight a few of them.

During his testimony before the Standing Senate Committee on Legal and Constitutional Affairs, in 2015, Aaron Wudrick, federal director, indicated that the Canadian Taxpayers Federation supported the bill for the following reasons. He said that given that unions enjoy a wide range of tax benefits and special tax treatment, it would be appropriate to require them to disclose their financial information, as is the case with charities.

It is a no-brainer. Transparency is very important because it acts as a deterrent and allows a broader class of people to uncover any transgressions.

In testimony before the House of Commons Standing Committee on Finance and the Standing Senate Committee on Banking, Trade and Commerce, Terrance Oakey, president of Merit Canada, was in favour of Bill C-377. He said that the bill would enable Canada to catch up with other advanced economies when it comes to financial disclosure. That has to be a good thing.

The bill would not change the mandatory payment of dues by unionized workers, nor the manner in which that money is used. The bill only deals with the transparency requirements that should be imposed on labour organizations. Workers paying dues deserve to know how that money will be spent—it is the least that should happen—and Canadians have a right to know how their taxes are being used to influence public policy.

A 2011 poll by Nanos found that 86% of unionized Canadians supported greater union transparency. That is an opinion shared by 83% of the general public.

With this support, why does the Liberal government want to repeal these important pieces of legislation? I must ask the government where the fairness is for hard-working Canadians. It is just wrong-headed, and we cannot stand for this.

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

Madam Speaker, I listened at some length to the member's rationale for why he opposes the government's initiatives with respect to Bill C-4, and I will reference specific comments that he made with respect to Bill C-377. In the previous Parliament, the first time that the matter was referred to the Senate, the bill was amended significantly by the Senate Tory majority, which seemed to have been opposed by the member's government at that time.

Does my friend have a comment as to why, at a time when Conservatives could not get support from their own Senate Tory colleagues, they felt the need to gut the attempts made by that caucus to make improvements to the bill?

[Kerry Diotte, Conservative, Edmonton Griesbach, AB]

Madam Speaker, I have to confess, as my colleague probably knows, that I was not around for that.

It comes down to transparency. It is a no-brainer. It was good legislation. Union members supported it. It is not all about union leaders. Union members are quite often not informed by their own leadership, so we have to stand up for hard-working union members. We are not here to support the union bosses; we are here to support the hard-working union members.

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

Madam Speaker, the Conservatives cannot simply claim to be in favour of transparency and equity, even if every Conservative member tells me that he or she supports workers and unions. In my opinion, when a government interferes in an organization's business and tries to pit its members and leaders against each other, that government cannot then turn around and say that it wants to help the organization. The truth is that the useless bill that the Conservatives introduced was designed to give unfair advantage to anti-union employers. That is what it boils down to.

[Kerry Diotte, Conservative, Edmonton Griesbach, AB]

Madam Speaker, I am not sure that there is a question there.

I have to reiterate that this bill is all about fairness. The member talked about organizations' leaders, and that seems to be what that party talks about. It gets its campaign workers and others from major union bosses and so forth. As Canadians, as Conservatives, and as someone who is a fiscal conservative, we care about the average worker.

Sometimes the party that appears to have tight focus with others in the labour movement throws the average worker under the bus. This is an exact example of it. Union members, the rank and file, want more transparency, and they certainly want secret ballots because the intimidation factor is too strong. I have seen it first-hand. People are afraid. I have heard members from the other side ask how many cases have come up where they are not complaining. They are afraid to complain.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, it is my first opportunity to get the floor in this debate, but not for lack of trying.

I recognize that the hon. member for Edmonton Griesbach is new to this place, but the debates around Bill C-377 were very clear. It was not just union leadership; it was union membership. It was a disguised attempt to tie the hands of fair collective bargaining.

Public release of information like union financing prejudices unions going in to collective bargaining, potentially on the verge of strikes.

This was anti-union legislation. I urge newly elected Conservatives to reconsider.

[Kerry Diotte, Conservative, Edmonton Griesbach, AB]

Madam Speaker, I obviously disagree. It is absolutely the right thing to do. Our legislation in the past was good, and of course I support the past legislation.

[Erin O'Toole, Conservative, Durham, ON]

Madam Speaker, I am pleased to rise today following my good friend from Edmonton Griesbach who talked about his own personal experience with his family and as a former union member himself. I hope to contribute to the debate here on Bill C-4 today, dispel some of the myths brought to this place by some of my colleagues in government, and talk in depth about the two reforms that Bill C-4 essentially would dismantle, what I would call the modernization of the labour movement from the last Parliament that is being dismantled in Bill C-4.

However first, I am concerned when members of this place suggest that those measures being unwound in Bill C-4 are a tax on union members or a tax on the labour movement. Nothing could be further from the truth. We have heard statistics from polls that have shown that union members support the measures contained in both Bill C-525 and Bill C-377 from the last Parliament. In many ways, the labour movement is the last large portion of our society to embrace the modern concepts of transparency that are really commonplace throughout government of all levels and throughout the charitable sector. It is sad that it takes Parliament to pull the movement into this modern age of transparency and disclosure, but it was something that was supported by union members.

There is no dismantling of rights. There is no attack, and I am going to spend a few moments to talk about what those bills contain and why it is a bad public policy move to step away from these modernization efforts for the labour movement. However, more importantly, why it is not an attack is that I, like many of my colleagues, was elected to Parliament in 2012 and in the last general election by members of unions, to a large extent.

I am very proud to have some of my best door-knockers who are either former or current members of the CAW, now Unifor, working in our auto industry at General Motors in Oshawa. I am very proud to have the strong support of members of the Power Workers' Union, working both at the Darlington generating station in my riding and at the Pickering station nearby. When I ran for office I spoke to Don MacKinnon, the head of that union, who has been a very good advocate for clean and reliable nuclear energy. I rely on the expertise that a lot of leading figures in the labour movement bring to their sectors. I consulted those same members on our trade agreements when I was parliamentary secretary for international trade in the last Parliament. I am very proud to represent these people who do get benefits from belonging to their union.

We have heard many speeches about how, over the last century, the union movement has been helpful and has advocated public policy and so on. Nothing in the two bills from the last Parliament took any of that away. It is really cowardice of debate when people have to hide the real actions of Bill C-4 behind saying unions brought us health care and unions brought us weekends. Let us talk about what was in those bills from the previous Parliament and what Bill C-4 is attempting to do. Let us not wrap it up in the trappings of unions having made a large and profound impact on our society. They have, and none of these moves were right-to-work movements or banishing unions. This was about making sure of the movement, which is supported through tax exemption status, which is supported by the Rand formula, meaning dues are paid under compulsion much like taxes are. We cannot pick or choose whether we pay this out of our paycheque. That fact means that the movement needs to embrace these concepts themselves, and it is disappointing that it did not.

For people who have been following this debate at home, Bill C-4 is essentially the new Liberal government's attempt at unwinding two very modest reforms from the previous Parliament. The first is Bill C-525, which was a bill that brought essentially the secret ballot to union certification.

It is interesting that the secret ballot has been the underpinning of our parliamentary electoral process since it was brought in by the Liberal government of Prime Minister Mackenzie in 1874. I think it is now considered a fundamental element of elections in Canada, where there is a secret ballot so that people can place their X in a way they determine is best without fear of somebody watching, and without fear of repercussions.

It is essentially a basic tenet of our parliamentary democracy in Canada, yet it is somehow absurd to extend that same protection of a secret ballot to the certification vote, to truly vote how one feels is best for one's personal view. I guess by saying that it should not be there, does it mean the certification vote is somehow outside of normal tenets of democracy? That is all I can determine from some of the comments here, such as rights being taken away and attacks on the union movement.

People in Canada need to know that Bill C-525 was for the secret ballot. I am sure a lot of Canadians who do not belong to a union are probably surprised that there was no secret ballot before. This is what we are talking about.

I have heard some members say there would be intimidation by employers and that sort of thing. That is nonsense. The secret ballot is inherently secret. There is no employer there watching the vote, and the votes will not be named. Therefore, one can exercise one's democratic right to cast a ballot the way one sees fit for one's own personal views and the way one sees fit for the future of one's workforce, whether to stay in the form of a non-unionized environment or to unionize.

Really, unions should be embracing the concept of having a full and robust democratic measure as part of their originating entrance into a workplace. Why would they shy away from a secret ballot? It is a fundamental pillar for all levels of government, and the labour movement should endorse that.

Second, Bill C-4 would unwind Bill C-377, from the last Parliament. We have heard a lot of people getting very heated about that subject as well. It is similarly disappointing that such legislation had to be brought forward and that the labour movement would not itself embrace this concept.

Yet again, another Liberal government, in fact the father of the current Prime Minister, brought in access to information legislation in 1983. In subsequent years, all provincial levels of government and virtually all major municipalities have embraced this same concept of whether there would be transparency. If one pays one's taxes by compulsion, one should be able to know where that money goes and assess whether it is being well spent.

This same basic tenet extends to the charitable sector as well, which through the CRA and through its tax assistance for charitable donations, has similar responsibilities on disclosure, to allow Canadians to assess where that money was being spent. Therefore, why should one part of our society, in this case the union movement, be exempt from a generational move towards transparency?

Quite frankly, I do not understand it. With a $5,000 threshold, CRA and the Government of Canada are not looking into an organization's children's Christmas party. However, if an organization is backing a major political campaign, like the Working Families in Ontario, or sending delegates to a large convention overseas that is taking positions that would be adverse to Canadian principles, they should be able to see where that money is being spent, because the government has allowed that money to be spent on a tax-exempt basis.

Therefore, for politicians at all levels and the charitable sector, Canadians know that transparency is commonplace now. The new government mentions it on occasion. This same level of transparency has been in effect in the United States, in the brother and sister unions, since the Kennedy administration.

Therefore, with Bill C-4, two fundamental reforms that would be good for the labour movement would be withdrawn. It concerns this side of the House. Hopefully it should concern more and more Canadians.

[Adam Vaughan, Liberal, Parliamentary Secretary to the Prime Minister (Intergovernmental Affairs)]

Madam Speaker, I listened to the member's comments, and I am a little troubled.

There are political parties that stand for small government. We hear parties talk about the reach they want into every single civil institution, whether it is a first nations band or a labour union. Next they will be deciding whether or not the members of the church we send across to Rome to elect the pope should have to publicly declare how they are voting and spending their dollars.

How far a reach would that party deem to be justified? Would it be reaching into every self-organized, democratic body in this country, deciding that it will make the decision on what is good for them, that it will assess the dollars spent as to whether it is in keeping with Canadian principle? How far a reach does this party contemplate? How many democratic institutions does it want to run besides itself in this Parliament?

[Erin O'Toole, Conservative, Durham, ON]

Madam Speaker, that is a very good question that my friend asked.

The question is simple. Any organization that the Government of Canada has given tax-exempt status to or requires Canadians to pay, by compulsion, dues or taxes or levies should know, at a fundamental level, and be able to see how that money is spent.

To bring it home to the hon. member, I am sitting in this Parliament a few years earlier than I intended in large part because the previous MP had some issues with spending disclosures. Orange juice or other things were not disclosed.

This is the era of transparency, which that side uses as a term, from time to time, but in its first 100 days would remove that same basic transparency, in Bill C-4, from the labour movement and from first nations governments. It is a step backwards.

[Randy Hoback, Conservative, Prince Albert, SK]

Madam Speaker, what I have often wondered about this is why now. With all the things that are going on in Canada, why bring this legislation forward now?

I look at things, and I go back to Saskatchewan, and what is important to us is jobs, of course, and the economy. I look across eastern Canada and at the manufacturing sector and how there is a lack of performance in jobs and exports in that sector, and how it is not competitive here in Ontario because of provincial rules.

Can the member explain to me why the Liberal Party felt it was necessary, to take as its first action here in the House of Commons, in its first 100 days, to repeal this legislation? Can he give us some insight on what he thinks is the reason behind that?

[Erin O'Toole, Conservative, Durham, ON]

Madam Speaker, the member always has very insightful questions in this House.

I cannot put myself in the shoes of the new government, and I certainly would not want to be in those shoes. However, if we look at the first 100 days—and there is a snazzy video out on the first 100 days—we can see the legislative agenda.

Bill C-1 is a formulaic administration-of-oaths bill; Bill C-2 was tax increases and the elimination of the TFSA; Bill C-3 was a massive injection of spending, in large part to cover a promise on the Syrian refugee resettlement; Bill C-4 is the unwinding of labour modernization from the previous Parliament, clearly a quid pro quo for support during the election; and Bill C-5 is undoing the sick day negotiation with the public service.

If we look at the legislative agenda of the new government in the first 100 days, it is tax, spend, and support the friends who got them into office. Contrast that with the previous government's first 100 days. There was the Federal Accountability Act, child care benefits for all families, and a GST reduction. It was about giving back to Canadians, not taking away.