Nova Scotia daycare workers getting raises, new pension and benefits package

Early childhood educators working in licensed daycare centres will soon get a pay raise and will, for the first time, be guaranteed pension and health benefits, thanks to a $111-million commitment from the provincial and federal governments.

Workers in provincial child-care centres and family home agencies will receive a 15 per cent wage increase. In addition, all employees of these centres — both full- and part-time workers — will be included in a newly created comprehensive group benefits and pension package.

This will mark the first time some daycare workers in the province will have access to employment retirement savings plans and health and dental coverage.

Becky Druhan, the minister responsible for education and early childhood development, said Wednesday the new compensation package is an attempt to “professionalize” early childhood education and make it a more attractive career for people entering the workforce and for newcomers.

It is also a retention initiative to keep existing early childhood educators (ECEs) working, she said.

“This isn’t just about money. It’s about creating a work environment that shows your dedication and skill are valued.”

Child-care workers and advocates applauded the compensation package and pay increases, which will more than cover the employee contributions required by the new pension and benefits plans.

However, even with a 15 per cent wage bump, Nova Scotia child-care workers’ pay continues to fall below the liveable age, said Kenya Thompson, co-ordinator of the advocacy group Child Care Now Nova Scotia.

The Canadian Centre for Policy Alternatives calculated Nova Scotia’s 2023 living wage at between $22 and $25 an hour.

“Having health insurance and being able to retire with a pension will be a game-changer for so many workers in the sector, but because wages continue to be inadequate, the pension amount will be low,” Thompson said in a news release.

Provincial figures provided to reporters Wednesday confirmed the annual pension for a worker who is 35 now and making $50,000 a year would amount to $35,000.

“To recruit and retain enough early childhood educators to make it happen, we need stronger wages,” Thompson said.

Unifor, which represents workers in three daycare centres in Cape Breton, said Wednesday it is pleased to see the government finally moving forward with a compensation package that will create stability and growth in the sector.

With the rising cost of living and greater demand on parents to provide for their families, child care has never been more essential, said Unifor Atlantic regional director Jennifer Murray.

“To recruit and retain enough early childhood educators to make it happen, we need stronger wages.”

– Kenya Thompson, co-ordinator of the advocacy group Child Care Now Nova Scotia

“Early childhood educators and other staff have been fighting for better wages, pensions and benefits for a long time and it’s encouraging to see them getting the respect and attention they truly deserve in Nova Scotia.”

The new group benefits plan will be provided by the non-profit Health Association Nova Scotia (HANS) and it will include health, dental and long-term disability benefits. It also includes coverage for medications, vision and mental health services.

A defined-benefit pension plan will be offered through the non-profit CAAT pension plan. A defined-benefit plan ensures retirees receive a set monthly income throughout their retirement lifetimes. ECEs and employers will each contribute five per cent of employees’ earnings, although the province is covering 100 per cent of all contribution costs for daycare operators for both the pension and benefits packages.

Druhan said this will ensure equitable access for all child-care workers while also ensuring that operators can continue and expand in the province. This will help parents, especially mothers, have better access to the workforce, she said.

“All of our industries, all of our employers, all of our businesses really require a robust child-care sector in Nova Scotia to be able to operate,” Druhan said.

“So it’s really important that we do this work not only to support our ECEs, not only to support our operators . . . but also to ensure that we have a thriving economy and that we’re supporting our businesses to enable them to get the employees that they need.”

To allow for a smooth onboarding transition, centres and ECEs will be added to the new plans gradually over the next year, beginning in May, with full enrolment by the end of 2024.

About 3,000 early childhood educators and support staff working in provincially licensed and funded child-care centres will benefit from the new pension and benefits package.

The province will also provide grants to home daycare providers to source their own benefits and will also contribute up to $1,500 for them to put toward a registered retirement savings plan. The amount of the benefits grants has not yet been determined but will be provided in a lump sum to home daycare operators, a department spokesperson said Wednesday.

The wage increases for ECEs will come into effect in April, bringing their hourly wages to between $22.91 and $34.54, depending on classification level.

The provincial share of the total $111-million price tag is $75.7 million, with Ottawa funding the remaining $35.3 million.

The work is part of the province’s implementation of the federal early learning and child-care agreement.