


Union Financial Disclosure Bill Passed by Canada’s Senate Just Before Summer Recess
Union Financial Disclosure Bill Passed by Canada’s Senate Just Before Summer Recess
Immediately prior to their summer break, Canada’s Senate voted 35-22 to pass Bill C-377, a private member’s bill which is causing much consternation for trade unions.
This move comes as something of a surprise since it was the Senate who broke ranks with the federal government back in June 2013 to block passage of the same legislation. For further details on the legislative history and events in 2013, please see our earlier bulletin here.
The new legislation passed on June 30, 2015 will require labour organizations to publicly disclose all payments made to outside groups or individuals worth $5,000 or more. There will also be salary disclosure for workers earning more than $100,000.
The controversial new rules are set out in legislation sponsored by Conservative MP Russ Hiebert and are effected through changes to the Income Tax Act. The regime will require disclosure of relevant financial information to the Canada Revenue Agency. These statements would then be available on a public website. Similar regimes are already in place in certain other jurisdictions.
The ostensible justification for the new requirements is the fact that unions are exempt from taxation. Those who support C-377 argue that unions should be treated with the same public disclosure requirements that charities follow. Some have also claimed that the move to greater transparency is justifiable since unionized Canadian workplaces impose mandatory dues on employees whether or not they are union members, and union dues are tax deductible.
A number of unions have also been vocal about the excessive compliance costs. Critics of C-377 have also questioned the bill’s impact on privacy rights and its constitutionality. Indeed, a number of unions and the Canadian Labour Congress have already spoken out publicly about their intent to challenge the legal validity of the new regime. Among their complaints, the specific requirements on disclosing political activity allegedly infringe on freedoms of association and expression protected under Canada’s Charter of Rights and Freedoms. Further public debate and legal wrangling on the issues appear to be almost inevitable.
by George Waggott
A Cautionary Note
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2015
Related Publications
Upcoming Changes to Ontario’s Auto Insurance Regime
Apr 12, 2021The regulation of Ontario’s auto insurance market may undergo several key changes to enhance consumer
protection and foster greater competition and innovation.
Client Focused Reforms (CFRs): Everything you need to know about the new conflicts of interest requirements (but were afraid to ask)
Apr 12, 2021The June 30, 2021 deadline for registered firms and their representatives to comply with the first phase of the CFRs relating to conflicts of interest is fast approaching. The new conflicts of interest requirements will require registrants to review and, where necessary, implement changes to their existing conflicts of interest policies and procedures.
British Columbia Employers Now at Risk of Expedited Workplace Closures
Apr 12, 2021Effective April 12, 2021, health authorities will have the power to order the temporary closure of businesses as a
result of COVID-19 outbreaks in the workplace
Get updates delivered right to your inbox. You can unsubscribe at any time.
Privacy Overview
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.