Significant Changes to Union Dues + Union Financial Statements
Workwise Newsletter
January 2022 - 4 min read
On July 7, 2020, the Government of Alberta introduced Bill 32, Restoring Balance in Alberta’s Workplaces Act, 2020. The intent of Bill 32 was to support economic recovery, restore balance in the workplace, and get Albertans back to work.
While a full review of Bill 32’s amendments to the Employment Standards Code and Labour Relations Code can be found here, this article focuses on the key amendments under Bill 32 that will take effect on February 1, 2022, and August 1, 2022. These amendments will introduce significant changes to the payment of union dues and union financial statements under the following:
- Labour Relations Code
- Police Officers Collective Bargaining Act
- Public Education Collective Bargaining Act
- Public Service Employee Relations Act1
Union Dues: Non-Core Activities (Comes into Force on February 1, 2022)
In setting union dues, unions will have to indicate the amount or percentage of the union dues related to non-core activities. Non-core activities are activities that do not directly benefit the union member in the workplace. They include the following:
- Political activities
- Social causes
- Charities
- Non-governmental organizations
- Organizations supportive of a political party
- Any other activity subsequently prescribed in the regulations
Union Dues: Core Activities (Comes into Force on February 1, 2022)
In setting union dues, unions will also have to indicate the amount or percentage of the union dues related to core activities. Core activities are activities that directly benefit the union member in the workplace. They include the following:
- Collective bargaining
- Representing union members in proceedings, investigations, or hearings related to their employment
- Educating and training union members and union staff
- Engaging in activities that relate to the operation and governance of the union, including:
- Developing and maintaining the union’s bylaws and constitution
- Administration of the union
- Recruiting new members in preparation for certification
- Operating hiring halls and other means of assigning work
- Any other activity subsequently prescribed in the regulations
Election to Pay Non-Core Activity Union Dues (Comes into Force on February 1, 2022)
Union members are not required to pay the amount or percentage of the union dues that relate to non-core activities unless the union member makes an election. This is an opt-in framework, meaning that members do not pay for non-core activity union dues unless, and until, they make an election. Members can revoke their election to pay the non-core activity union dues at any time.
If a union member makes an election to pay non-core activity union dues or revokes such election, the union must notify the employer.
No union can expel, suspend, discipline, or otherwise impose any form of penalty on a member for not making an election or revoking an election. Further, no union can coerce, intimidate, threaten, or make promises to a member to make, refrain from, or revoke an election to pay non-core activity union dues.
If there is a dispute regarding any of the above matters, a party can apply to the Alberta Labour Relations Board to resolve the dispute. The Alberta Labour Relations Board has the authority to make any order it considers appropriate, including an order requiring the union to produce any necessary information, adjust the amount or percentage of union dues that relate to non-core activities, suspend the union’s ability to collect union dues, and require the union to pay restitution to members for collecting non-core activity union dues that the member did not elect to pay.
Union Financial Statements (Comes into Force on August 1, 2022)
Unions must provide financial statements to their members as soon as possible following the end of the union’s fiscal year.
The financial statements must:
- Be provided to members in writing and free of charge
- Be provided in a way that is accessible to a member and allows the member to keep the statement and review it in the future
- Contain enough information to accurately disclose the financial condition and operation of the union to its members
- Cover the preceding fiscal year and include the union’s income, expenditures, assets and liabilities
- Be signed by a person with sufficient knowledge of the financial affairs of the union
- Any other information subsequently prescribed in the regulations
Union Dues (Comes into Force on August 1, 2022)
Before a union can charge union dues or change the amount or percentage of the union dues, the union must provide to each member:
- Information respecting the amount or percentage of the union dues that relate to non-core activities and core activities
- A list of the non-core activities
- A list of the persons or entities paid by the union in respect of the non-core activities
- Information required or reasonably requested by a member to make an informed decision for the purpose of making an election or revocation to pay non-core activity union dues
- Any other information subsequently prescribed in the regulations
No union can collect union dues or use union dues for non-core activities unless the member made an election. If a member elects to pay union dues for non-core activities, the member must pay the full amount or percentage. That is, members cannot choose to fund only some non-core activities or pay a partial amount of the non-core activity union dues.
Field Law will continue to monitor the status of Bill 32 and will provide updates on any amendments and regulations introduced. If you have any questions about the potential impact of Bill 32, or if you need assistance updating your organization's policies and procedures to comply with the new requirements for union dues and financial information disclosure, please contact Lee Carter or any member of Field Law’s Labour and Employment Group.
For additional information on Bill 32 and it's implications, please click here to view the recording of our 2021 - A Year in Review webinar, which covered developments in labour law and occupational health and safety.
1 See Order in Council No. 393/2021. Note that the above amendments under Bill 32 do not apply to union dues or membership fees charged by academic staff associations, graduate student associations, or postdoctoral fellow associations.