The first contract settlement legislation passed third reading in the Nova Scotia Legislature Friday.

Bill 102 amends the Trade Union Act and allows an arbitrator or the Nova Scotia Labour Relations Board to impose a first collective agreement. It passed with a vote of 27 to 18.

Last month, Liberal Leader Stephen McNeil said the legislation is unfair to Michelin and other companies because it means a third-party would tell them how to pay their workers.

PC Leader Jamie Baillie called the arbitration a possible "job killer."

Several companies in N.S., such as Clearwater Seafood, Sobeys and Michelin opposed the legislation, saying that no outside body should be able to impose work conditions or salaries on individual businesses.

The NDP government has said the legislation would boost productivity by avoiding strikes or lockouts.