Nova Scotia Accounts for $470M Settlement After Court Strikes Down Bill 148
Nova Scotia has budgeted an estimated $470 million to compensate roughly 81,000 unionized public sector workers after the Supreme Court ruled Bill 148 unconstitutional. Payments must be completed by December 31, 2027.
Nova Scotia Finance Minister John Lohr announced that the province has accounted for an estimated $470 million settlement in its 2025-26 fiscal year budget following a court ruling that struck down Bill 148, the Public Services Sustainability Act. The legislation, passed under former Premier Stephen McNeil, froze and capped public sector wages.
In February 2025, Nova Scotia Supreme Court Justice Ann E. Smith ruled that Bill 148 was unconstitutional because it violated collective bargaining rights. A court order issued by Justice Smith sets a final deadline of December 31, 2027, for all payments to approximately 81,000 eligible unionized workers. Non-union workers who may have been affected by the legislation are excluded from the settlement.
The order establishes interim deadlines requiring the province to identify eligible recipients and calculate amounts owed by June 30, 2027. Any errors or omissions in the eligibility list must be reviewed and corrected by September 30, 2027. Lohr stated that calculations will be handled on a union-by-union basis, though payments will be distributed simultaneously.
Workers are entitled to tiered damages: $1,250 for each of the first two years of wage restraint, $750 for the third year, and $500 for the fourth year. An additional $1,250 payment is provided to those affected by changes to long-service awards. Of the 81,000 eligible workers, only about 55,000 qualify for damages related to service awards. The maximum charter damages per worker total $5,000.
Under the court order, the government must also pay $200,000 in costs to the unions within 30 days. Premier Tim Houston referred to Bill 148 as a "big, big mess" left by the previous Liberal government.