Province settles Shercom lawsuit, NDP says tire recycling still ‘a mess’

The province settled a major tire recycling lawsuit, but the NDP says scrap tire stockpiles near Saskatoon remain a concern. Wayne Mantyka reports.

Saskatchewan’s scrap tire recycling program remains under scrutiny after the provincial government agreed to a $4.8-million settlement with Saskatoon-based Shercom Industries.

Shercom lost the province’s tire recycling contract in recent years to companies based in the United States and Eastern Canada. The company subsequently launched a lawsuit alleging it had been unfairly excluded from the bidding process.

Earlier this week, the province announced it would pay $4.8 million to settle the dispute. In a written statement, the government said it does not admit liability but believes resolving the matter “provides greater certainty and stability for the scrap tire recycling industry and benefits Saskatchewan residents.”

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The Opposition NDP says problems persist within the recycling system, pointing to what it describes as a growing stockpile of scrap tires near Clavet.

“So high that we can once again see them from space,” said NDP MLA Aleana Young.

Shercom says it is relieved the legal matter has concluded and is now focused on its manufacturing operations.

“We make a multitude of products from parking curbs to curb ramps, rubber paving. Currently we are employing just shy of 100 people,” said Mike Richards of Shercom Industries.

Young blamed the government for the loss of Shercom’s recycling division.

“It’s another example of the Sask. Party killing jobs. They basically paid $5 million to kill a hundred Saskatchewan jobs at a local company out of Saskatoon and tire recycling for the province is still a mess,” she said.

Shercom said it could not yet comment on potential expansion plans in Saskatchewan. The company noted the industry depends on several factors, including access to an adequate supply of raw materials.