section 466(2)

INTRODUCTION AND BRIEF DESCRIPTION

Trade unions are not considered unlawful even if they involve restraint of trade.

SECTION WORDING

466(2) The purposes of a trade union are not, by reason only that they are in restraint of trade, unlawful within the meaning of subsection (1).

EXPLANATION

Section 466(2) of the Criminal Code of Canada is a crucial provision that recognizes and protects the legitimate functions of trade unions. The section asserts that the mere fact that a trade union engages in activities that may be considered as restraining trade does not make those activities unlawful under subsection (1) of the Criminal Code. In essence, this provision establishes a legal principle that trade unions are not criminal organizations. Subsection (1) of Section 466 of the Criminal Code defines a criminal organization as a group of three or more persons who commit certain offenses in a systematic and coordinated manner for a criminal purpose. These offenses include, but are not limited to, drug trafficking, human trafficking, extortion, and fraud. The provision also criminalizes any participation in, contribution to, or association with a criminal organization. However, trade unions are not criminal organizations, even if they engage in activities that may appear to restrain trade. The reason for this is that trade unions serve an important social function, which is to protect the collective bargaining rights and working conditions of their members. Some of the activities that trade unions may engage in, such as picketing, boycotting, and striking, may affect trade, but they are considered lawful because they are carried out in pursuit of legitimate purposes. In conclusion, Section 466(2) of the Criminal Code recognizes the importance of trade unions in protecting the interests of workers and upholding their rights. It affirms that the activities undertaken by trade unions, even if appearing to restrain trade, are not considered unlawful within the meaning of the Criminal Code. Therefore, it is clear that trade unions are not criminal organizations, and they have an important role to play in ensuring fair labor practices and protecting the rights and interests of workers.

COMMENTARY

Section 466(2) of the Criminal Code of Canada addresses the legality of trade unions in relation to restraint of trade. A trade union is an organization of workers that aim to protect the collective interests of its members, negotiating wages, benefits, and working conditions with employers. Given the nature of this organization, it is not surprising that trade unions can sometimes be seen as monopolies that may engage in practices that restrain trade. However, section 466(2) of the Criminal Code of Canada clarifies that the objectives of a trade union are not automatically considered unlawful simply because they result in restrictions on trade. This section seeks to balance the rights and responsibilities of both workers and employers in a capitalist free-market economy. Trade unions are an essential component of worker empowerment and collective bargaining, which helps to balance the power imbalance between workers and employers. The right of workers to join trade unions is protected by international law and is recognized as a fundamental human right. The Canadian government enshrined this right in the Canadian Charter of Rights and Freedoms in section 2(d), which states that "everyone has the right to freedom of association." In recognition of the significant role that trade unions play in promoting fairness and ensuring the well-being of workers, the law protects them by exempting them from the application of section 45 of the Competition Act, which prohibits agreements between competitors that have the effect of unduly preventing or lessening competition. The exemption of trade unions from the application of section 45 is essential in ensuring that workers can negotiate with employers and advocate for better working conditions, wages, and benefits without facing legal liability because of the restriction of trade that such agreements entail. It is important to note that the Criminal Code does not provide a blanket exemption to trade unions from all forms of criminal liability. Trade unions must still abide by the law and cannot engage in unlawful activities such as violence, extortion, fraud, or criminal conspiracy. Any illegal activity, even if undertaken in furtherance of a trade union's objectives, will render that organization liable for prosecution. In conclusion, section 466(2) of the Criminal Code of Canada plays a crucial role in ensuring that trade unions can continue to exist and operate legally in Canada while promoting the collective interests of workers. This provision recognizes the importance of balancing the needs of both workers and employers in a free-market economy while upholding the rule of law. It is a positive stance on the role of trade unions in Canada's economy and ensures that workers are empowered to advocate for their interests collectively, thereby promoting social justice in the workplace.

STRATEGY

Section 466(2) of the Criminal Code of Canada provides an exception to the general rule that conspiracies to restrain trade are illegal and punishable under criminal law. This section lays out that the purposes of a trade union, while they may have the effect of restraining trade, are not unlawful under section 466(1) of the Code. This exception recognizes the important role of trade unions in protecting the interests of workers and facilitating collective bargaining. However, while this provision offers protection to trade unions, it is important to understand that there are limitations to what conduct is permissible under section 466(2). For example, while it is lawful for a trade union to engage in collective bargaining and to negotiate contracts that include restrictions on workers' ability to strike or for employers to lock out their workers, it is not lawful for a union to engage in conduct that goes beyond these lawful objectives. For instance, a trade union cannot engage in conduct that harms consumers or competitors, such as conspiring to fix prices or to allocate markets. The distinction between lawful and unlawful conduct is not always clear-cut and can be the subject of litigation. In light of this, there are several strategic considerations that must be taken into account when dealing with section 466(2) of the Criminal Code: 1.Be aware of the limitations of the exception. While section 466(2) provides an exemption to the general rule against conspiracies to restrain trade, it is important to remember that not all conduct engaged in by a trade union will be lawful. Union leaders and members should be aware of the contours of the exception and avoid any conduct that could be seen as going beyond the lawful purpose of a trade union. 2.Be transparent and accountable. Trade unions should strive to be transparent and accountable to their members and to the public at large. This includes ensuring that union resources are used in accordance with their lawful objectives, and that any agreements reached with employers are done so in good faith and consistent with the collective bargaining process. 3.Seek legal advice. In situations where there is uncertainty as to the lawful or unlawful nature of particular conduct, it is important to seek legal advice. This can help to prevent any inadvertent or unintentional violation of the law. 4.Engage in collective bargaining in good faith. A key objective of trade unions is to engage in collective bargaining with employers in order to negotiate better wages and working conditions for their members. Unions should do so in good faith and avoid using their bargaining power to engage in conduct that is not directly related to this objective. 5.Engage with stakeholders. Unions should strive to engage with stakeholders, such as employers, government officials, and members of the public, in order to build support for the important role that trade unions play in protecting workers' rights and promoting economic growth. In conclusion, section 466(2) of the Criminal Code of Canada provides an important exception to the general rule that conspiracies to restrain trade are illegal. However, this exception is not absolute and has its limitations. Trade unions must be aware of these limitations and engage in conduct that is consistent with their lawful objectives. This requires a strategic approach that emphasizes transparency, accountability, good faith bargaining, and engagement with stakeholders. By doing so, trade unions can continue to play a vital role in protecting workers' rights and promoting economic growth in Canada.