A private Conservative-sponsored bill requiring union organizers to publish their salaries, health benefits and other private data on a government website is “Nixonian” and “very dark,” says a Conservative senator.
“Using the Income Tax Act to target certain groups you don’t like is a little Nixonian and not appropriate,” Senator Hugh Segal told Blacklock’s; “This legislation sends a message to unions that is deeply unconstructive – that they are to be singled out for ‘special scrutiny’ as though they are a malevolent force.”
Bill C-377, An Act To Amend The Income Tax Act (requirements for labour organizations), is currently in second reading debate in the Senate after clearing the House by a 147-135 vote on Dec. 12.
Under the legislation, all unions must disclose financial accounts including salaries and benefits paid to officers and senior employees; lists of assets and liabilities; loans receivable; time and money spent on organizing activities; members’ pension payments over $5,000 and other data, under threat of $1,000-a day fines.
“I think we’ll have more than five senators oppose this,” said Segal, who stressed he had not counted caucus votes: “I’ve had three or four other senators come up to me on this.”
The Ontario senator predicted “very robust” scrutiny of C-377 in committee, and said the bill in any form is unlikely to pass into law before Labour Day.
“I doubt the government would use closure on second reading to shut this down,” Segal said in an interview. “It would be really unwise to force this through.”
“I don’t think this will move into final reading before the fall,” he added.
Five Conservative MPs voted against the bill in the Commons, including opponents who cited a warning from the Canadian Bar Association that the legislation is “unbalanced” and unconstitutional.
In debate, Segal said the bill contained “doubtful provisions of deep concern,” and would sanction a “Canada Revenue inquisition” of unions.
“Where we are headed with this bill is down a dark alley to a very dark place indeed,” said Segal, former chief of staff to Brian Mulroney; “If this is to apply to trade unions, why would it not apply to Rotary Clubs; the Fraser Institute; Christian, Muslim and Jewish congregations across Canada?”
Segal continued, “Perhaps Coca-Cola should be forced to disclose to Pepsi its marketing plan and expenditures over $5,000? How about the Montreal Canadiens having to tell the Boston Bruins whether their coach spent more than $5,000 on dinner for the team?”
Senator Nicole Eaton (Cons.-Ont.), co-sponsor of the bill, estimated 4,300,000 Canadians currently hold union memberships paid with tax deductible dues: “This level of detailed public disclosure will increase the confidence of Canadians that the public tax subsidy for labour organizations is warranted.”
In an exchange with Senator Jim Munson (Lib.- Ont.), Eaton said she welcomed parallel legislation for virtually any organization that benefits from tax policy:
MUNSON: “Would the honourable senator favour a similar bill for medical professions, engineering associations, nursing associations, real estate associations – and their presidents and executives – to make them ‘transparent’?”
EATON: “Absolutely, if they receive tax credits and are exempt from taxation. I think anyone here who wants to introduce a private member’s bill should do so.”
MUNSON: “They already have tax credits, we know that. How far is the honourable senator prepared to go? Does she want to open up very book of every association in this country?”
EATON: “That is for others to decide. I simply agreed to sponsor this bill. If other people want to bring up other organizations, by all means.”
Senator Eaton did not respond to Blacklock’s request for an interview. 
By Tom Korski
