The Nova Scotia Labour Board has dismissed a motion from the Service Employees International Union (SEIU) Local 2 that sought to have the former employees at Out of the Cold’s two Halifax shelters rehired after the province ended their contract last summer. According to a written decision by the labour board, SEIU represented certain employees of Out of the Cold, which had a contract with the Department of Opportunities and Social Development to run supportive housing sites on Cogswell Street in Halifax and Church Street in Dartmouth. On July 8, 2025, the department ended its contract with Out of the Cold and announced Atlantic Community Shelters Society (ACSS) would immediately assume responsibility for the two sites. The decision says ACSS told Out of the Cold employees they would using their own existing staff for the contract and asked them to vacate the sites. At the time, Suzanne Ley, executive director of employment support and income assistance with the department, told CTV News Atlantic they ended the contract due to “ongoing and significant challenges” at the sites. In an open letter, Out of the Cold said it was “shocked and devastated” by the decision to end the contract. SEIU held a rally outside Nova Scotia Province House that summer and called on the government to require the new service provider to offer employment to experienced workers who had “fostered relationships with residents.” SEIU filed its motion with the labour board on July 25, 2025, under Section 31 of the Trade Union Act. They claimed ACSS was bound by the collective agreement between SEIU and Out of the Cold due to the successorship provisions of the act. The written decision noted SEIU was seeking ACSS be recognized as a successor to Out of the Cold and that ACSS be required to rehire Out of the Cold staff who lost their jobs. In its reply to the motion, ACSS said there was no sale or transfer of business and argued SEIU did not make out a prima facie case of successorship. It requested a preliminary dismissal from the labour board. “ACSS’ position is that no transfer of business or the operations thereof or any part of either of them could have occurred in the circumstances,” the decision reads. “They say that the facts, which are for all practical purposes agreed, most closely resemble lost contract cases from this and other Canadian Labour Boards in which successorship has not been established.” The written decision noted successorship provisions link labour relations obligations to business entities, no matter if employers change. The obligations do not attach to the work itself. “SEIU has pled no facts that any aspect of Out of the Cold’s operation remained after ACSS took over other than the client files, office supplies and some possessions of Out of the Cold employees,” the decision reads. “The clients remained at the HRM shelters, so their files necessarily had to stay to inform ACSS’ contract as a service provider. “ACSS’ reply indicated that the ACSS employees returned the personal possessions of Out of the Cold employees and this was not contested by SEIU. None of these are evidence that the ‘beating heart’ of a business operation remained at the shelters.” The decision said it was uncontested that ACSS operates separately from Out of the Cold and that both organizations provide services for people experiencing housing insecurity. “SEIU has not pled facts which, if proven, could persuade a reasonable labour board that any part of the economic organization of Out of the Cold has transferred to ACSS,” the decision reads. “The transfer of client files and miscellaneous office supplies are not enough to establish successorship; this Board has consistently held that in order to establish successorship, all or a significant component of a functional economic vehicle must be acquired from the predecessor by the successor. “There are no facts alleged that could allow a reasonable labour board to conclude that Out of the Cold’s business was continued by ACSS.” The labour board dismissed SEIU’s successorship application and noted that since it was a final order, it will not inquire further into the matter. Following the decision, Tina Oh, vice-president of SEIU Local 2, said they will continue to fight for stronger successor rights laws. “Nova Scotian workers are at a disadvantage – our lawmakers are responsible for writing some of the weakest successor rights language in the country," Oh said in a written statement. “With more robust legislation, we believe precarious contract workers in Nova Scotia, like the ones at Out of the Cold, would be better protected.” For more Nova Scotia news, visit our dedicated provincial page
