Saskatchewan’s NDP opposition is again taking aim at the province for its dealings with a Saskatoon-based tire recycling plant, Shercom.
On Nov. 15, Shercom launched a lawsuit against the Saskatchewan government, the province’s tire recycling regulator and its chief executive, claiming millions of dollars in damages for breach of a contract as part of a dispute that's lasted more than two years.
Pointing to details in the statement of claim, the NDP’s Aleana Young is accusing Premier Scott Moe of reneging on a promise that Shercom would have a long-term contract, an assured supply of used tires, and a voice in the future of the tire recycling industry if it rebuilt its manufacturing plant after a major fire in 2016.
The statement of claim argues Shercom was unfairly excluded from a request for proposals to award a second tire recycler in Saskatchewan, and argues negotiations were "predetermined and locked into awarding" services to an American based company instead.
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Young says the decision led to the layoffs of about 130 people — 59 already axed from Shercom, plus another 79 next month as the company transitions to a skeleton staff.
"And if I were the premier, I would be working day and night to fix this. This is 130 families — 130 workers in Saskatoon, Martensville, Warman, who are facing pink slips right before Christmas,” Young said in a news release Monday.
Responding to the opposition, Moe said it’s the government’s role to create a regulatory environment where industry stakeholders make the decisions — not to put its thumb on the scales.
“The very people that are selling those tires are making the decisions about how they’re being recycled,” said Moe.
-With files from Keenan Sorokan
