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
Insights (5 Posts)View More
Corporate Counsel CPD Webinar | Inclusion By Design – Using Behavioral Insights to Build Inclusive Organizations
This engaging and informative session will introduce new behaviorally informed strategies, and explore the concept of “nudges”, gentle interventions that guide individuals toward a desired choice or action, and “sludge”, hidden frictions in systems that impede progress toward a desired goal. Participants will learn specific strategies for applying behavioral insights to increase DEIB across their organization.
Attracting Venture Capital and Private Equity Investors: The Alberta Business Corporations Act Makes Alberta the Most Investor and Business Friendly Corporate Jurisdiction in Canada
Reforms to the corporate legal regime in Alberta make it the province of choice for businesses and investors alike.
New Corporate Transparency Requirements for Federal Corporations
Effective January 22, 2024, federal corporations are required to file with Corporations Canada certain information on individuals with significant control.
Structuring Mortgage Investment Corporations in Canada
An overview of structuring Mortgage Investment Corporations or "MICs" in Canada
Working for Workers Four Act, 2023: How Ontario’s Proposed Changes Will Impact Employers
This bulletin discusses new employer obligations for job postings, tip and wage protections, and more as proposed in the Working for Workers Four Act, 2023.
Get updates delivered right to your inbox. You can unsubscribe at any time.