Government Introduces Legislation to Ensure Financial Sustainability

Legislation introduced today, Dec. 14, provides public sector employers with a framework for new money they can offer for wages.

"The legislation is consistent with government's fiscal plan, fair to employees, and affordable for taxpayers," said Finance and Treasury Board Minister Randy Delorey. "It is also consistent with the Public Service Sustainability Mandate introduced in August."

The Public Services Sustainability Act respects collective bargaining rights and ensures that matters outside the wage framework, such as working conditions, remain negotiable. The framework will be 0, 0, 1.0, 1.5, and .5 per cent on the last day of the agreement.

The legislation also ensures newer, lower-paid public sector employees receive larger pay increases. Some will see step increases of as much as five per cent per year.

"We have to continue to make tough choices so we can invest in quality health care, deliver first-rate education, and build essential new infrastructure in the future," said Mr. Delorey. "Our fiscal plan and labour settlements need to help prepare Nova Scotia for long-term progress. All Nova Scotians have to play their part as we position the province for a stronger future."

The act:

• ensures public sector employees who are eligible for retirement allowances will receive the benefit accumulated up to April 2015
• encourages public sector employers and unions to work together to find savings, a portion of which could then be applied to further wage increases
• protects pensions, benefits and vacation time
• ensures taxpayers are protected from arbitration decisions that could be higher than what is affordable as set out in the fiscal plan.

"This legislation provides public sector employees the same fair, affordable wage packages some unions agreed to in the collective bargaining process," said Mr. Delorey. "Nova Scotia and Nova Scotians cannot afford a more costly settlement - period."

Compensation is government's single largest expense. Government spends about $5.2 billion on compensation or 52 per cent of all of government's total spending.

The act applies to all bargaining units except those that have concluded negotiated collective agreements prior to the act coming into force.

Information on the Public Service Sustainability Mandate and updates on public sector bargaining can be found at novascotia.ca/PublicServiceSustainability .