Two-thirds of Halifax Water employees could be on strike or locked out today.
Negotiations for a new contract have ground to a halt over the proposed pension plan.
Halifax Water spokesperson James Campbell says the current pension plan is unsustainable.
"It's a big deficit, and there's no light at the end of the tunnel as far as that's concerned," said Campbell.
Halifax Water has offered the two union locals a complex set of options. The union claims that while present retirees won't be affected by proposed changes, future pensioners will pay a steep-price.
“The employer has offered us a few options that range from an immediate 12.5 per cent cut to our future benefits to up to a 33 per cent cut to our future benefits," said CUPE Local President Heather Corkum.
The unions say the plan can be saved without gutting it.
"With some modest changes, we could actually save Halifax Water $25 million over the next 15 years," Corkum said.
Halifax Water says service will continue.
“Some systems are automated, some systems need to be staffed all the time, there'll be a lot of long days and hours for non-union staff who are working at these systems," said Campbell.
Members of Halifax Water union locals and their supporters spent Tuesday demonstrating at city hall. They say they have doubts about how effectively the water systems can operate without them.
The availability of clean, safe water is vital for everyone, but some businesses, such as breweries, simply cannot operate without it.
"We have talked to Halifax Water and been assured that in the event of a work stoppage of some sort that it'll be business as usual, so we're hoping for the best," said Wade Keller of Oland Breweries.
The brewery says that even in the event of a strike, their taps won’t run dry. They’ve been working for months to build up stock for the upcoming Victoria Day Weekend.
With files from CTV’s Ron Shaw