Bill C-377: a Wolf in Sheep's Clothing
Apr 27, 2012
Bill C-377 – An Act to amend the Income Tax Act (requirements for labour organizations) has recently passed second reading in the House of Commons. If it becomes law, it will force unions to provide an onerous level of detailed financial disclosure about their work on behalf of their members.
Under the bill, every labour organization (local union, labour council, branch, lodge) and every labour trust (pension plan, benevolent fund, training fund, and health and welfare fund) would be required to file a public information return with the Canada Revenue Agency. It requires all unions and each of their locals, area councils, etc. to disclose detailed financial information, salaries, supplier contracts, loans, accounts receivables, investments, and spending on organizing, collective bargaining, education and training, lobbying and all political activities.
The legislation would apply to all national, international, and regional unions, components and local unions along with Federations of Labour and Labour Councils – approximately 25,000 organizations in total.
All of this information gathered would then be made available on a federal government website. Failure to comply with the legislation would mean a fine of $1000 for each day not in compliance.
This draft legislation, which is obviously ideologically motivated, is being supported by various anti-union groups as the Fraser Institute and the Canadian Federation of Independent Business. It is moving though the House in the guise of a Private Member’s Bill sponsored by Conservative MP Russ Hiebert.
The bill is bad for labour in all kinds of ways. It would allow employers and anti-union groups to get extremely detailed information about everything a union spends money on, and how strong the union they are bargaining with is. This information can be used to threaten collective bargaining rights and organizing drives.
Privacy rights would also be violated under this legislation. It would require that all transactions and disbursements over $5000 be shown along with the name and address of the payer and payee, the purpose and description of the transaction, and the specific amount.
It’s pretty obvious that the hidden agenda here is a greater interference in labour relations. The proposed bill isn’t really about taxes at all. It is clearly interference in the labour laws of Canada, most of which are under provincial jurisdiction. It is an overt interference in the labour relations process designed to give significant advantages to employers, at taxpayers’ expense.
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