Conservative MP Opposes Bill C-377
Dec 14, 2012
Bill C-377 – An Act to amend the Income Tax Act (requirements for labour organizations) was passed by the House of Commons this week. The labour movement, other organizations and individuals ranging from the Canadian Bar Association and several Conservative MPs have voiced opposition to the spirit of the bill.
The Bill will require all labour organizations to provide a wide range of information on expenditures and other financial information to the federal government. The Canada Revenue Agency will make the details available on a website, which will be accessible by the general public. While trade unions generally fall under provincial legislation and regulation, the Conservatives have used their control of the CRA to delve into the detailed finances of trade unions.
The Canadian Bar Association says Bill C-377 is deeply flawed legislation because it is unlikely to stand up to a constitutional challenge and breaks privacy laws. Canada’s federal Privacy Commissioner has stated that the Bill would invade personal privacy and exceeds the limit of what is acceptable disclosure.
This highlights the fact that unions are accountable to their members and not the general public. Most trade unions already provide this information to its membership anyway.
Beyond these issues raised by the law community, other questions surround the motives behind the bill. Proponents of the bill have indicated that full public disclosure is warranted because union dues are tax deductible and therefore are essentially funding from the Federal Government. Conservative MP Brent Rathgeber has publicly denounced this argument as “fallacious”.
Rathgeber goes on to state that, “… tax deductibility is not the same thing as public dollars. If it were otherwise, every dollar not subject to taxation theoretically would be a public dollar. There can be no public interest in how private entities spend private money legally.”
If the logic of this argument is extended Rathgeber contends that, “if I take a client out for lunch, 50% of that is written off as a business expense. Should the restaurant have to disclose how much it pays the server and the cooks simply because of the tax deductibility of the meal?”
What is it that the Bill seeks to achieve if a Conservative MP is calling Bill C-377 misleading and erroneous?
The Bill is a way for union-busting organizations to collect information on unions and how they spend their money. This gives them insight into the strategic assets a labour organization may have and highlight weakness. It weakens a union’s position and impairs their ability to stand up for workers.
Organizations like Merit Canada, Canadian Labourwatch Association, Quebec Employers’ Council, and the Montreal Economic Institute all stand in support of the Bill. The agenda of these groups is no secret- lower wages, fewer benefits, and declining protection for workers.
Terrance Oakey, President of Merit Contractors was a colleague of Stephen Harper at the National Citizens Coalition (NCC). The NCC was established to fight the Rand Formula and openly condemn the constitutional safeguards for collective bargaining and union representation.
Even some members of the CPC caucus aren’t buying the argument for the legislation. “I have obvious and I believe logical concerns regarding Bill C-377” Rathgeber stated.
This direct attack on labour is should be concerning to the average Canadian. Unions are at the forefront of the debate on advancing worker rights through health and safety legislation, better pensions and benefits, job security, and higher wages. When unionized workers do better, non-unionized workers also benefit.
It’s time C-377 is exposed for what it is. A dastardly attempt at weakening workers rights and propelling the shameful race to the bottom.
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Instead of spending money on accounting all this stuff, pay us properly on E. I. and Veterans and pensions...
Rod Ferris - 2012-12-14 13:59