Nova Scotia ignores CRFA concerns, introduces anti-business legislation

(Nov. 18/11) On Nov. 17, 2011 Nova Scotia introduced Bill No. 102, “An Act to prevent unnecessary labour disruptions and protect the economy.” If passed, Bill No. 102 would provide for first contract arbitration (FCA) in the province.

In early September, Labour Minister More informed CRFA and other business organizations of her intention to seek the Labour Management Review Committee’s (LMRC’s) advice on FCA legislation. As Nova Scotia experiences fewer lost days due to strikes than most provinces and already has legislation to deal with unfair labour practices, it was clear government intended to introduce FCA to appease organized labour.

In its review process, LMRC heard from both unionized and non-unionized employers in Nova Scotia and reported no consensus on the need for FCA legislation. Nevertheless, government has elected to proceed with this legislation.

CRFA action and what you can do
Government seems intent on ramming Bill No. 102 through the House, and has called for a second reading the day after introduction. CRFA and other business associations continue to oppose this Bill. CRFA has been active in the media and will present to the Law Amendments Committee of the Legislature. Businesses are encouraged to contact their local MLA to express their opposition. To appear before or forward your comments to the Law Amendment Committee, click here.

Background on FCA and Bill No. 102
CRFA opposes FCA because it favours organized labour, but does not solve outstanding issues, or stimulate economic activity. In fact, most employers would view this type of legislation as unfriendly to business, pushing them to invest elsewhere.

Click here to read more about why FCA is problematic.

Model proposed
Bill No. 102 follows the most union-friendly model and is based on the Manitoba Labour Relations Act – the only model in Canada that does not require determination that a party has bargained in bad faith or there is a dysfunctional bargaining relationship, before FCA is available. Under Bill No. 102:

either party can apply for the appointment of a conciliator within 21 days from the date of certification (existing Section 37);
the conciliator has between 90 and 120 days from the date of appointment to assist the parties in concluding a First Collective Agreement;
if the conciliator is unable to assist the parties in concluding a first collective agreement and so advises the Labour Board (or 120 days have expired since the conciliator’s appointment) and 90 days have expired since the certification, either party can apply to the Board to settle the first collective agreement;
within 60 days from date of application, an arbitrator (agreed on by the parties) will settle the first collective agreement or it will be determined by the Board (the Board can extend that period a further 30 days);
any strike or lockout ongoing at the time of application must end immediately unless the parties otherwise agree and employees will be reinstated on the basis of seniority (subject to the Board otherwise providing to allow a totally shutdown workplace to resume normal operations);
in settling the first collective agreement, the Board or arbitrator may take into account:
a) terms and conditions in negotiated collective agreements for employees performing the same or similar functions in the same or similar circumstances; and
b) such other matters as the Board or arbitrator considers fair and reasonable in the circumstances; and
a first collective agreement will last for one year from the date it is settled.

The only substantive way Bill No. 102 differs from Manitoba’s legislation is that a conciliator will contact the parties within 14 days after certification to provide information and education on the collective bargaining process.

Click here (PDF) to read an open letter from CRFA and other Nova Scotia employers urging Minister More to reconsider FCA.

CRFA's Nova Scotia Lobbyist

Nova Scotia ignores CRFA concerns, introduces anti-business legislation