Construction projects must hire local apprentices

Full Title:
Nova Scotia Jobs Agreements Act

Summary#

The Nova Scotia Jobs Agreements Act would require large public or publicly funded construction projects to use a formal jobs agreement before contracts are awarded. These agreements would set rules for wages, benefits, working conditions, apprenticeships, local hiring and business participation. The bill is intended to ensure that major public investments create jobs and training opportunities in Nova Scotia.

  • The requirement would generally apply to projects worth at least $50 million, including some private projects receiving major provincial funding or tax support.
  • Contractors would have to ensure that at least 25% of designated trade hours are worked by registered apprentices.
  • At least 10% of apprentice hours would have to be performed by members of under-represented groups.
  • At least 10% of the construction workforce would have to be made up of members of under-represented groups.
  • Workers doing the same trade or type of work would receive the same wages, benefits and protections, whether or not they belong to a union.
  • Projects would need plans to increase opportunities for Nova Scotian, Mi'kmaq and other Indigenous businesses.

What it means for you#

Workers and apprentices

  • Large qualifying projects would need a local hiring process that gives qualified Nova Scotia workers first consideration.
  • Registered apprentices would be required to perform at least one-quarter of designated trade hours.
  • The bill would require a share of apprentice hours and the overall construction workforce to come from under-represented groups. The bill does not define all of the groups covered; regulations may provide more detail.
  • Unionized and non-unionized workers doing the same trade or classification of work would receive the same project wages, benefits, working conditions and protections.
  • Non-union workers covered by an agreement would have to pay the working dues required under the applicable trade terms. The bill does not explain how these dues would be handled or whether any exceptions would apply.

Contractors and subcontractors

  • General contractors bidding on a qualifying project would have to confirm that they participate in the provincial apprenticeship system and will meet the apprenticeship and workforce targets.
  • General contractors would be responsible for meeting these requirements across the project and would have to include suitable requirements in subcontracting agreements.
  • Contractors and subcontractors could face corrective action plans or other remedies if they do not comply. The exact remedies would be set by future regulations.

Businesses

  • Each qualifying project would need a plan to maximize opportunities for businesses based in Nova Scotia, including Mi'kmaq and other Indigenous businesses.
  • The bill applies mainly to on-site construction work. It generally excludes professional services and the manufacture or supply of materials away from the work site, unless an agreement says otherwise.

Government and taxpayers

  • Public agencies and municipalities involved in qualifying projects would need to negotiate and file a jobs agreement before awarding the construction contract.
  • The bill mainly changes how large projects are planned and contracted. Its direct effect on most people would likely be limited unless they work on, bid for or supply a qualifying project.

Expenses#

The bill may increase administrative and compliance costs, but no dollar estimate is available.

  • Public agencies, municipalities and private asset owners receiving major provincial support would need to negotiate, file and monitor jobs agreements.
  • Contractors may face added costs from reporting, apprenticeship requirements, workforce targets and compliance monitoring.
  • The bill could affect project costs or bidding if contractors need to change hiring, training or subcontracting practices. The bill does not provide an estimate.
  • The bill does not create a stated fee or fine. It allows the Minister to set corrective measures and other remedies through regulations.
  • No publicly available information is provided about total government costs, savings or changes to project prices.

Proponents' View#

  • The bill appears intended to ensure that major public investments create jobs and training opportunities for Nova Scotians.
  • A possible argument for the apprenticeship targets is that they could help more workers progress toward trade certification and support the province’s construction workforce.
  • The requirement for local hiring could be seen as directing more employment from publicly supported projects to qualified Nova Scotia workers.
  • Common wage, benefit and workplace rules for union and non-union workers could be seen as creating more consistent standards on the same project.
  • The business participation plans could improve access to public construction work for Nova Scotian, Mi'kmaq and other Indigenous businesses.
  • Jobs agreements may help promote labour stability and timely project completion, which are stated purposes of the bill.

Opponents' View#

  • One concern is that the apprenticeship and workforce targets could make it harder for some contractors to bid or could reduce the pool of available workers on projects where qualified workers are scarce.
  • The requirement for non-union workers to pay working dues may raise questions about fairness and how those payments would be administered.
  • The bill gives the Minister broad authority to set important details through future regulations, including reporting rules, exemptions and remedies. The full effects cannot be judged until those rules are available.
  • It is unclear how the bill would define all under-represented groups or how compliance with the workforce targets would be measured.
  • Municipalities, public agencies and businesses may face added administrative work when negotiating, filing and monitoring agreements.
  • The bill does not provide cost estimates or explain how possible added compliance costs could affect project budgets and timelines.