The Nova Scotia government has agreed to pay damages to public‑sector and publicly funded workers represented by Unifor and other unions after a provincial court found the 2015 Public Services Sustainability (2015) Act — commonly known as Bill 148 — unconstitutional.
Court ruling leads to lump‑sum payments
The settlement follows a landmark decision by the Nova Scotia Supreme Court that determined Bill 148 unlawfully interfered with workers' ability to engage in full and free collective bargaining. The court's decision, issued Feb. 25, 2026, and the order on remedy are expected to be issued imminently and will stand, the parties say, because the province has committed not to appeal.
Under the agreement reached between a coalition of unions and the provincial government, union members who were employed during the four years that Bill 148 restricted collective bargaining will be entitled to lump‑sum payments. Damages of up to $5,000 will be paid to union members identified on each bargaining unit's seniority list, or on a comparable list where applicable.
Union leaders welcome the outcome
Unifor, one of the unions central to the case, characterised the decision as a vindication of workers' rights after a protracted legal struggle.
"For more than a decade, our union and members fought to have their rights recognized after being denied the ability to freely bargain their wages and benefits," said Unifor National President Lana Payne.
Unifor Atlantic Regional Director Jennifer Murray said the remedy represents an important step toward accountability, even if it cannot fully make up for years of lost bargaining rights.
Background: Bill 148 and its impact
Bill 148, imposed in 2015 by the Liberal government of then‑premier Stephen McNeil, was enacted as the Public Services Sustainability (2015) Act. The legislation is now judged to have directly interfered with constitutionally protected collective bargaining rights, resulting in workers losing wages and benefits they otherwise would have negotiated.
The provincial government has secured a commitment with the unions that it will not appeal Justice Ann E. Smith's decision, meaning the February ruling and any orders for remedy will remain in effect.
Who stands to receive payments
The agreement specifies payments to union members who appear on bargaining‑unit seniority lists, or comparable listings where seniority lists are not available. The precise number of workers who will receive damages was not specified in the public notice accompanying the agreement.
- Eligible recipients: union members in public sector or publicly funded workplaces who were employed during the four‑year period affected by Bill 148.
- Maximum payment: $5,000 per eligible union member.
- Timing: the court is expected to issue the order on remedy next week.
Political and legal implications
The government’s decision not to appeal removes a major point of uncertainty for affected workers and the unions. It also leaves intact the Supreme Court finding that provincial action in 2015 infringed Charter rights — a conclusion that could influence future provincial labour policy and legislative drafting.
For unions, the outcome shows the legal avenue can yield remedies when statutory measures are judged to override constitutionally protected collective‑bargaining rights. For governments, it underscores the legal and financial risks of measures that curtail labour rights.
What comes next for workers
The court is expected to issue formal orders detailing the implementation timeline and mechanics for distributing payments. Unions and the province will then be responsible for identifying eligible members and administering the lump sums as directed by the court order.
Union leaders cautioned that while the payments represent recognition and some compensation for past harms, they are a partial remedy for years during which members were denied the full exercise of their bargaining rights.
| Key fact | Detail |
|---|---|
| Legislation | Public Services Sustainability (2015) Act (Bill 148) |
| Court decision date | Feb. 25, 2026 |
| Maximum damages | $5,000 per eligible worker |
| Appeal? | Province committed not to appeal |
The resolution is likely to be watched closely by other unions and employers across the province and may shape how Nova Scotia governments approach public‑sector bargaining in the years ahead.
— Reporting from Nova Scotia.
