The Act to improve the transparency, governance and democratic process of various associations in the workplace was passed on April 1.
It sets out a number of measures that will affect union activities, particularly with regard to the presentation of financial statements, the use of financial resources and the introduction of so-called “optional” expenses.
This FAQ offers a summary to help clarify the changes introduced by this new law.
What are our obligations for financial statements?
Under the new law, unions will be required to submit their financial statements to a review engagement or an audit engagement, to prepare them in accordance with generally accepted accounting principles, and to present them to their members annually at a meeting.
The APTS was already producing audited financial statements that were presented to delegates annually at the General Council. These statements will be available online as of the next fiscal year. Until then, you can consult them by requesting them from your local team.
What are our obligations for financial reporting?
Unions will be required to report annually on the use of financial resources, including the amount of principal union dues and any optional dues, as well as the remuneration, benefits and expenses for each person who holds an elective office within the union and for its highest-ranking unelected official. A summary of expenses made using optional dues must also be presented, as well as a summary of expenses greater than $5,000, $10,000 or $25,000, depending on the organization.
Additionally, unions will have until January 1, 2027, to present a report on dues held as of March 31, 2026, including the portion allocated to expenses for main and optional activities, if any.
What do optional dues cover?
The law says that some activities have to be funded from so-called “optional” dues, voted on by employees annually at the General Assembly.
The following activities are targeted:
- Any legal challenge to laws, regulations or government decisions, except when this challenge is within the context of representing an employee for the application of the collective agreement;
- An advertising campaign or participation in a social movement, when it concerns:
o a partisan political topic,
o a legal challenge to laws, regulations or government decisions,
o or a topic that is unrelated to working conditions or the collective agreement.
The law says that the vote on optional dues must be held by secret ballot conducted over a period of at least 12 hours after a presentation at a meeting.
When does it come into effect?
The new measures in the law don’t take immediate effect. Unions can continue to fund spending related to activities that are deemed “optional” using “principal” union dues until October 1, 2026.
Measures concerning financial statements and the requirement to report on the use of financial resources will apply for the fiscal year starting April 1, 2027.
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