Labour Board Dismisses SEIU’s Application in Out of the Cold Dispute

NSLBUnion News
Written By Halifax WAC

Written by Garret Pifko, 3L

On January 21, the Nova Scotia Labour Board dismissed an application put forward by Service Employees International Union (SEIU) seeking successorship rights. The Board determined that SEIU did not prove that the Out of the Cold Community Association’s business was transferred to the Atlantic Community Shelters Society (ACSS). As a result, 40 unionized employees remain unemployed.

Successorship rights allow unionized employees to maintain their rights when the business is transferred to a new owner. The new business must recognize these rights when successorship is granted. This prevents employers from avoiding the responsibilities they guaranteed for their employees. SEIU says the ACSS operates so similarly to Out of the Cold that the employees were unjustly terminated with no choice in the matter.

The Board accepted that business transfers with unionized employees can be a broad category. However, the Board rejected SEIU’s argument that the transfer showed significant similarities between the two businesses. The Board claims this dispute is only about the lost contract rather than an issue of successorship.

The application originates from the Nova Scotia Department of Opportunities and Social Development’s decision to abruptly cancel their contract with Out of the Cold on July 8, 2025. The Department signed a contract with ACSS while still in an agreement with Out of the Cold. ACSS immediately assumed their position when the new contract was made. Out of the Cold were given little time to gather their possessions before being locked out of their offices and permanently replaced.

Both Out of the Cold and ACSS are service providers separate from the Department. The contracts allow the operation of two supportive housing sites in the Halifax Regional Municipality for vulnerable individuals over 16 years old. Both sites are owned by the HRM.

Out of the Cold have employees represented by SEIU, whose agreement lasted from February 2023 to November 2026. The unionized employees were let go before seeing their agreement reach its end. The Department was notified of the application but declined to participate in the proceedings.

Halifax WAC