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Canadians Want Unions to Be Open About Their Political Activism

Posted: 10/14/11 04:43 PM ET

Those who live in Quebec have probably seen the "golden meters" publicity campaign from Hydro-Québec's union, which opposes the introduction of electricity meters allowing consumption to be read remotely. There's also a coalition (the "Sans-Chemise") that demands changes to employment insurance during federal election campaigns, or the "Social Alliance" of union and student organizations that defends a certain view of public services.

In Ontario, Working Families, a group supported by several union organizations, made the headlines by attacking the Conservatives during the recent election campaign, as it did in the 2003 and 2007 campaigns.

These are examples of unions engaging in political activism and spending compulsory union dues which they collect for purposes without any direct connection to the negotiation of working conditions, and sometimes, against the wishes of some of their members.

It is impossible, however, to have an overall picture of these activities and of the portion of dues allocated to political and ideological causes because unions' financial statements do not need to draw such distinctions, and only need to be provided to members who request them. For example, it is ironic, to say the least, that a Canadian journalist had to consult a U.S. government site that publishes unions' financial information online in order to discover the advertising expenses of the United Steelworkers at the last NDP congress here in Canada.

Yet with the Rand formula, and given the other tax privileges they enjoy, unions wield an indirect power to tax the employees they represent, a power that is granted to them by the Labour Code, and hence by government. Other than governments, unions are among the rare organizations that can count on such compulsory financing. Private businesses and charitable organizations must always depend on voluntary financing. It makes sense, then, for the unusual financial privilege of the Rand formula to be coupled with at least as much financial transparency as is required of public organizations.

At least, that's what 83 per cent of Canadians and almost 86 per cent of unionized workers believe. Indeed, in a poll published by LabourWatch last month, Canadians were almost unanimous in their agreement with the idea of requiring unions to provide access to their financial information.

We should therefore not be surprised that two bills were tabled recently to deal with the current lack of transparency. In particular, a bill tabled in the House of Commons would require unions to reveal their financial statements to the population. This private member's bill from Conservative MP Russ Hiebert would require the separation of activities connected to labour relations from political and social activities, a distinction that was actually proposed by a Montreal Economic Institute study last February. In the National Assembly of Quebec, Bill 33 eliminating union placement of employees in the construction industry would also force unions in this sector to make their financial statements public.

We can only applaud these timely initiatives that respond to the wishes of the population and of union members in particular. Unionized employees will of course be the primary beneficiaries of reliable financial statements that are easily and anonymously accessible. They will also be clearly informed of the ways in which their union dues are spent.

On the other hand, a union organization could legitimately want to keep its financial information far from the eyes of the public, and far from its competitors, too. This option should be provided for by law, but in this case, the union should finance itself like other private organizations, which is to say on a voluntary basis, and therefore should renounce the Rand formula.

The special privileges enjoyed by unions must be accompanied by increased responsibilities. In other words, the compulsory financing power of the Rand formula must be counterbalanced by greater transparency from unions toward their members and the population at large.

 

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12:05 AM on 10/15/2011
I'm not certain how this spending by Unions is very different from Corporate spending of shareholder wealth and without consultation, I might add. At least in the case of Unions, members are aware of the connection between Unions and the NDP. Corporations are not as open about where they funnel their money.

The Union response to supporting a political Party was required to balance the massive support that corporations were giving to ant-union Parties.

Financial accounting is available to the union membership and need not made public anymore than corporations make public their finances other than to their shareholders.

Ironically, Gagnon and his MEI cohorts are reluctant to identify their sugar daddies, stating instead, 'Although the MEI discloses the amount and the breakdown of its funding, its policy is not to list specific donors.' Come on fellow, it's not enough to know how big the hoop is but necessary to know who makes you jump through it.
12:21 PM on 10/15/2011
Anyone with an internet connection can download publicly traded companies financial information. Corporations support political parties just like unions do. The difference is corporations do not create and pay for attack ads of parties they do not favour. And out spend the political party running in the election. This should be against the law as it provides an unfair advantage as in the recent Ontario election.
02:55 PM on 10/15/2011
You're right, corporations don't create attack ads but they support organizations such as MEI who do. However, given the determined attack on Unions by Harper's Conservatives and the Liberal in BC, one can understand why Unions are on guard. Their campaign in Ontario provides Hudak with a convenient scapegoat but I think that the Conservatives ought to look at their policies for a more realistic reason for their weak show. The Environment group seemed to have a problem with Hudak and their ads favoured the policies more closely identified with the Liberals. Hudak had Harper on side and that may have contributed to his defeat. Seems to be it was Harper back around 2000 who campaigned against third party spending limits.

You probably remember Harris' 'Whiz Kids' back in 1995 when it was the Conservatives who initiated this U.S. style of electioneering. Eves did not do well with his new drafted policies and campaign either. The point is that blaming external sources such as third parties may just be a denial strategy. In the end, it may be that the Party policies are not acceptable to the electorate
02:51 PM on 10/21/2011
You missed the point of the article shareholders voluntarily buy shares, they can also pull up the financial information. Shareholders can choose not to buy into a company, can union members choose not to pay dues?
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11:07 PM on 10/14/2011
Mr. Kelly-Gagnon, the patient is dying from acute toxic overload and you and LabourWatch are focused like a laser beam on minor cosmetic surgery.

Attend to the many ethical issues the business world is facing - including manipulation marketing and the legalized theft of corporate gouging - and then maybe Canadian citizens will turn an eye to your Union concerns.
10:24 PM on 10/14/2011
Nice try.

Did the Harper government write this for you?
09:00 PM on 10/14/2011
To bad Mr. Kelley-Gagnon's philosohy didn't extend to corporations and businesses with their accountability and political donations. Corporate donations to political parties are the most corrupt form of democracy in the world today and lobyists in the US (mostly from industry groups lobying on behalf of companies) have poisoned the system in the US to a point that it can no longer function. Because of the corporate system of contolling government, democratic governments no longer represent people and have alienated a large segmant of the population to such a degree that they have become seperated from the p[olitical-democratic process.
07:35 PM on 10/14/2011
Unions owe the public zero accountability; they owe their membership 100% accountability.
02:54 PM on 10/21/2011
If those members are paid with public money they owe the public 100% of everything they have.
07:23 PM on 10/14/2011
Unions owe no accounting to the public at large; they owe total responsibility to their members.