Tory Dissenters Condemn 377

Two Conservative Senators who voted to kill union bill C-377 say the measure remains flawed, and ripe for constitutional challenge. The two were the only members of the government caucus to support a motion to strike the Conservative bill before Second Reading.

“It’s not constitutional,” said Senator Diane Bellemare of Alma, Que. “I think it will affect privacy and it’s not really well-balanced.”

Bill C-377 An Act To Amend The Income Tax Act compels unions to disclose senior officers’ salaries and benefits over $100,000 on a Canada Revenue website; as well as publish lists of assets and liabilities; contracts; loans receivable; time and money spent on organizing activities; and payments to members for pensions and health benefits over $5,000.

A motion to strike the bill as based on “erroneous principle” was defeated by the Senate’s Conservative majority on a 42 to 28 vote on Tuesday evening. In an interview, Bellemare yesterday said the bill sets a far-reaching precedent in government intrusion.

“If we were to investigate or oblige every organization that gets money from contributions that are tax deductible, then we would have a mass of institutions that would have the same obligations – including political parties,” Bellemare said.

Senator Nancy Ruth of Toronto, the other Conservative caucus dissenter, described C-377 as offensive to Canadians. “Unions play a very important role in Canada and in any labour market in the Western world,” she said. “I find this approach to perhaps modernize unions to not be the most effective way to go. I find it offensive, to tell the truth.”

‘Why Are Union Bosses So Afraid?’

The bill is now referred to hearings of the legal affairs committee chaired by Conservative Senator Bob Runciman of Thousand Islands, Ont., a former provincial solicitor general. Runciman in earlier debate complained of the influence of “big labour” and “union bosses” in election campaigns.

“Unions have channelled their resources – their members’ dues – into electing Liberal governments in Ontario,” he said; “It was no surprise that Ontario’s labour minister opposed Bill C-377 when it first came to the Senate, given that government’s quid pro quo arrangements with big labour.”

“I have no doubt that we will hear from the critics that union finances are already disclosed to members,” Runciman said. “But if their finances are already open and transparent, then why are union bosses so afraid of Bill C-377? They are against it because their claims of openness are bogus”; “The union bosses are against it because they don’t want people, including their own members, to know how they spend their money. If they don’t want to be accountable, they should give up their tax deduction.”

Runciman’s office yesterday said there was no chance the legal affairs committee would open hearings on the bill before Christmas. Parliament is scheduled to break for the holiday recess on December 12, and return in the last week of January.

Senate rules do not permit a private bill like C-377 to be fast-tracked through committee.

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Union Bill Survives First Test

A contentious Conservative labour bill C-377 last evening survived its first test in the Senate on word the government aims to pass it within sixty days. Senators voted 42 to 28 to reject a motion to defeat the bill. Two Conservatives supported the motion declaring it “erroneous” and unconstitutional: Nancy Ruth of Toronto and Diane Bellemare of Alma, Que.

“It needs to be stopped,” said Senator Elaine McCoy, Independent Progressive Conservative of Calgary who sponsored the motion; “It’s a question of who is going to be the champion in the Conservative caucus. I don’t know who’s willing, but you saw two people stand up – and I did no lobbying.”

“I don’t know the appetite yet for a flat-out mutiny,” added McCoy, a former Alberta labour minister. In an interview, McCoy said she was advised by Conservatives that C-377 must pass this winter: “I was told by their House leader they want to get this through by February.”

Senator Yonah Martin of Vancouver, Conservative deputy leader in the Upper House, did not comment.

Bill C-377 An Act To Amend The Income Tax Act compels unions to disclose senior officers’ salaries and benefits over $100,000; as well as all lists of assets and liabilities; loans receivable; time and money spent on organizing activities; and payments to members for pensions and health benefits over $5,000. The records would be published on a Canada Revenue Agency website.

The bill passed the Commons in 2012 but was thwarted in the Senate six months later when a majority of legislators, including Conservative dissenters, allowed amendments that stripped the bill of its provisions. “It was the one time I’ve seen any kind of backbone in the Conservative caucus,” McCoy said.

The bill was revived October 29 in the Senate, where Conservatives hold a 23-vote majority.

Called A Bid To Intimidate Unions

McCoy said the bill sets a precedent in mandating disclosure of personal information for any Canadian who receives a tax deduction. “It pulls down one of the bulwarks of our privacy protection,” the Senator said; “If a union claims tax deductions, taxpayers are then entitled to detailed personal information. If that is the case, why wouldn’t taxpayers then be entitled to know the same details about their neighbours or local businesses?”

McCoy’s motion proposed the bill be dismissed “because it is based on an erroneous principle, namely that a tax deduction mandates public disclosure of private information; and it is ultra vires the authority of Parliament.”

“I still think it’s a thinly-disguised way of intimidating another voice that is anticipated to be out of sympathy with the Conservative message,” McCoy said.

The bill now proceeds to a repeat of 2013 Senate hearings that saw the measure criticized as unconstitutional by five provinces – Nova Scotia, New Brunswick, Québec, Ontario and Manitoba. The Canadian Bar Association also expressed “serious reservations” on C-377, calling it a bid to “directly target activities protected by the Canadian Charter of Rights and Freedoms”.

Insurers, pension fund and mutual fund managers also objected to the measure, citing onerous requirements to track benefits paid to millions of enrollees based on their union affiliation.

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