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Mail Delivery for Canadians Act and the Ontario government’s Bill 115 – Putting Students First Act (even though it was repealed in 2013).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
Mark Tector and Annie Gray This morning, May 30, 2017, Ontario Premier Kathleen Wynne announced her government’s intention to introduce sweeping legislative reform of labour and employment laws. If passed, the proposed Fair Workplaces, Better Jobs Act, 2017 would…
Read MoreCanada’s Anti-Spam Law (“CASL”) is a federal law in force since July 1, 2014, aimed at eliminating unsolicited and malicious electronic communications and requires organizations to comply with specific consent, disclosure and unsubscribe requirements when…
Read MoreJennifer Taylor Introduction Kirby Elson had been fishing in Newfoundland and Labrador for about 50 years when the policy on Preserving the Independence of the Inshore Fleet in Canada’s Atlantic Fisheries (“PIIFCAF”) was introduced in…
Read MoreRick Dunlop, David Randell, Christine Pound, Sadira Jan and Kevin Landry The federal government’s introduction of the Cannabis Act, the first step in the legalization of marijuana (or cannabis), has understandably triggered a wide range of reactions in the Canadian business…
Read MoreMark Tector and Annie Gray On April 26, 2017, the Government of Nova Scotia announced that amendments to the Occupational Health and Safety Act, which were passed in May of 2016, will officially come into force as of June…
Read MoreOn May 2, 2017, the Nova Scotia Court of Appeal issued a significant decision in Tibbetts v. Murphy, 2017 NSCA 35, on the proper interpretation of s. 113A of the Insurance Act. Specifically the issue was whether…
Read MoreJoe Thorne and Amanda Whitehead A fundamental principle of our legal system is that all parties to a dispute should be given the opportunity to be heard. However, the law recognizes that some circumstances warrant speedy judicial…
Read MoreDamages for pain and suffering are capped for Nova Scotians who are injured in motor vehicle accidents if their injuries are considered “minor.” The cap was amended for accidents occurring on or after April 28,…
Read MoreGrant Machum & Sean Kelly A recent decision from the Supreme Court of British Columbia, Ly v. British Columbia (Interior Health Authority) 2017 BCSC 42, provides helpful clarification of the law on termination of probationary employees on the basis…
Read MorePerlene Morrison and Hilary Newman The Supreme Court of Canada recently declined to hear an appeal from the Ontario Court of Appeal decision in Campbell v Bruce (County), 2016 ONCA 371. The Court of Appeal confirmed the lower court finding…
Read More