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- calendar_today November 12, 2026
Compensation Timeline for Bill 148 Damages Set in Nova Scotia
The Nova Scotia government has been ordered to compensate 81,000 unionized workers impacted by Bill 148, the wage restraint legislation deemed unconstitutional, by December 31, 2027. This directive, arising from a Nova Scotia Supreme Court order signed earlier this week, details a schedule for identifying recipients and issuing payments to those affected by the former Liberal government's actions.
Background: Court Ruling Against Wage Restraint Legislation
In February, Nova Scotia Supreme Court Justice Ann Smith ruled that Bill 148 breached the Canadian Charter of Rights and Freedoms. Bill 148, enacted by the previous government under Premier Stephen McNeil, imposed wage patterns on unionized workers and eliminated a lump-sum retirement bonus, the long-service award, previously included in collective agreements. This prompted unions to pursue legal action challenging the bill.
Settlement and Court-Ordered Process
The court order stipulates that the government must identify every individual eligible for damages by the end of June 2027. By the end of September, officials are required to review and correct any errors or omissions reported by unions or claimants. Nova Scotia Finance Minister John Lohr acknowledged the complexity of this task, given the large number of people involved, stating that compensation would be calculated union by union and released concurrently to all recipients.
Key Terms of the Compensation Settlement
The settlement, announced in October, requires payments based on years worked during the wage restraint period: $1,250 for the first year, $1,250 for the second, $750 for the third, and $500 for the fourth. Additionally, those impacted by changes to the service awards will receive $1,250. While 81,000 workers are slated to receive some compensation, 55,000 qualify specifically for damages tied to the service award changes. The total cost of the settlement could reach $470 million, a figure already included in the province's 2025-26 fiscal plans, ensuring no additional deficit impact.
Response from Government and Financial Implications
Finance Minister Lohr described the compensation as a lingering issue from the 2017 Liberal government, noting, “It’s a charge against 2017—a hangover from the McNeil era.” The government is also required to pay $200,000 in legal costs to the unions responsible for the successful court challenge, with payment due within 30 days of the order.
Looking Ahead
The process of compensating affected workers will be closely monitored as the government works to meet the court-ordered deadlines. The legal battle and resulting settlement mark a significant chapter in Nova Scotia’s labour relations history and have been addressed through coordinated efforts between unions and government officials.
Related coverage
Source: cbc.ca.
