Act to Improve Transparency, Governance, and the Democratic Process of Various Workplace Associations

Full Title:
Act to Improve Transparency, Governance, and the Democratic Process of Various Workplace Associations

Summary#

Bill No. 3 would amend the Labour Code, the law on labor relations in the construction industry, and the Professional Syndicates Act. It primarily targets trade unions and certain employee associations.

The main measures would be as follows:

  • Divide union dues into a main contribution and an optional contribution.
  • Require a majority secret ballot to establish or modify the main contribution.
  • Require a secret ballot at least once a year to authorize the collection of the optional contribution.
  • Allow members to exercise certain votes, including on contributions, strikes, and collective agreements, for at least 24 hours.
  • Prohibit intimidation or threats against employees who express disagreement during a meeting or vote.
  • Require associations to provide more information about their internal rules, their leaders, their committees, and their affiliated organizations.
  • Require a review and approval of the bylaws or regulations at least every five years.
  • Impose the annual presentation of financial statements and a report on the use of financial resources.
  • Require the disclosure of certain information, such as the compensation of leaders, their expenses, and expenditures over $5,000.
  • Reserve the optional contribution for funding certain activities, including certain legal interventions, advertising campaigns, and political activities that do not directly relate to labor relations.
  • Provide for fines of up to $50,000 in certain cases.

The measures target associations governed by the Labour Code as well as several associations in the construction industry. The changes related to internal regulations would come into effect six months after the sanction. The bill also provides for transitional rules.

What This Means for You#

If you are a unionized employee:

  • You may receive more information about how your contributions are used.
  • You may vote each year on the collection of an optional contribution.
  • This contribution could fund certain activities that are not directly related to the negotiation or enforcement of your collective agreement.
  • You may request a copy of the financial statements and the report on the use of financial resources of your association free of charge.
  • Important votes should be organized in a way that allows participation for at least 24 hours.
  • You should not face intimidation or threats for expressing a differing opinion.

If you are a leader or a union association:

  • You will need to provide more information to members.
  • You will need to have the financial statements reviewed or audited depending on the size of the association.
  • You will need to follow specific rules for votes and for the use of contributions.
  • You will need to separate expenses funded by optional contributions and report them.

For construction employees:

Similar rules would apply to employee associations and representative associations in the sector. The bill specifically names the CSD, CSN, and FTQ for certain obligations regarding the presentation of their financial statements and financial reports.

Costs#

No overall cost estimate is provided in the bill.

Associations may have to pay more to:

  • prepare financial statements according to recognized accounting standards;
  • conduct a review or audit;
  • prepare detailed financial reports;
  • organize secret votes over a minimum period of 24 hours;
  • transmit documents to members;
  • adapt their bylaws, regulations, and internal procedures.

For employees, the bill does not directly foresee an increase in the main contribution. However, an optional contribution could continue to be collected if approved by a majority vote. Its amount and use would need to be presented to members.

Supporters' Viewpoint#

Supporters might argue that the bill:

  • improves the financial transparency of trade unions;
  • gives employees better control over certain contributions;
  • promotes more accessible and democratic voting;
  • protects members who express dissenting opinions;
  • clarifies the compensation of leaders and significant expenses;
  • prevents the use of main contributions for certain political activities or those unrelated to labor relations;
  • strengthens members' trust in their associations.

They might also believe that the rules are comparable to transparency requirements imposed on other organizations that manage funds from their members.

Opponents' Viewpoint#

No publicly available information.