Nova Scotia Government Introduces Public Services Sustainability (2015) Act
On the same day that the Nova Scotia government announced its projected deficit had ballooned to $241 million, it also introduced Bill 148, the Public Services Sustainability (2015) Act (“Act”).
The stated purposes of the Act are to create a framework for public sector employee compensation plans by placing fiscal limits on increases to compensation, to authorize a portion of cost savings identified through collective bargaining, and to fund increases in compensation – all while encouraging meaningful collective bargaining processes.
In addition, the Act establishes a collective bargaining pattern for four-year public sector deals which impose wage increases at the following rates:
Year 1: 0%;
Year 2: 0%;
Year 3: 1%; and
Year 4: 2%.
This pattern mirrors the one that the Province had been hoping to set through tentative deals established with Nova Scotia’s teachers and the Province’s largest union, the NSGEU. Unfortunately, Nova Scotia’s 10,000 teachers rejected the tentative deal and the NSGEU refused to present it to their 7,600 civil service members.
Naturally, there is talk of constitutional challenges, but s. 28 of the Act says that neither an arbitrator nor the Nova Scotia Labour Board has jurisdiction to determine Bill 148’s constitutional validity. Notably, the Act addresses requirements found in the Supreme Court of Canada’s decision in Meredith v. Canada, 2015 SCC 2, which ruled that the federal government’s right to limit wage increases in the 2009 Expenditure Restraint Act passed constitutional muster and did not offend the s. 2(d) Charter right to associate. The wage increases in the Act are consistent with the increases the Nova Scotia government was able to negotiate with both teachers and the civil service and may, therefore, be reflective of “an outcome consistent with actual bargaining processes”.
Nonetheless, we know that there are ongoing court challenges to restraint legislation, including the federal government’s 2011 Restoring Mail Delivery for Canadians Act and the Ontario government’s Bill 115 – Putting Students First Act (even though it was repealed in 2013).
Assuming the majority Liberal government actually passes the Act, its enactment will be delayed, giving all 75,000 public sector employees the opportunity to negotiate. However, any such negotiations will need to be within the boundaries established through the legislated framework. Undoubtedly, collective bargaining – in some manner or another – will continue in Nova Scotia, but court challenges may yet be commenced. Stay tuned! Life is interesting when the cupboard is bare.
Archive
Kathleen Leighton In Canada, foreign nationals have various options to obtain either “employer-specific” or “open” work permits – we discuss this distinction in greater detail here. Open work permits can be obtained by individuals in…
Read MoreGiles Ayers and Joe Thorne Introduction Balancing a municipal budget has always been a challenging task in Newfoundland and Labrador, and this is particularly true in a year of extreme weather events and a global…
Read MoreWe are pleased to present the third installment of Beyond the border, a publication aimed at providing the latest information to clients about new programs and other immigration-related information that may be pertinent to employers of…
Read MoreHarold M. Smith, QC and G. John Samms Effective Monday, August 24, 2020, an order directing the mandatory wearing of masks, pursuant to the Public Health and Protection Act and the Special Measures Orders made…
Read MoreGerald McMackin, QC and Christopher Marr, TEP New Brunswick joined the rest of Canada in enacting legislation that deals solely with powers of attorney when the Enduring Powers of Attorney Act (“Act”) came into force…
Read MoreMurray Murphy, QC, CPHR and Kate Jurgens Three new bills have been introduced in the most recent sitting of the Prince Edward Island legislature. In the employment setting Bill 38 aims to address the prevalence…
Read MoreJennifer Taylor The Supreme Court of Canada has finally put an end to the “waiver of tort” debate. After years of uncertainty, a majority of the Court confirmed in Atlantic Lottery Corp Inc…
Read MoreStephen Penney and Justin Hewitt As municipalities begin opening up recreational facilities in Alert Level 2 of the COVID-19 public health emergency implemented by the Provincial Government, Municipalities Newfoundland and Labrador has been receiving inquiries…
Read MoreThere is no obligation upon a municipality to reduce a business tax due to limited operations secondary to the COVID-19 pandemic. A municipality does, however, have the discretion to offer business tax relief. If a…
Read MoreRuth Trask and John Samms Newfoundland and Labrador employers who continued operations this spring during Alert Levels 4 and 5 of the COVID-19 pandemic should take note of a new program offered by the provincial…
Read More