Shercom Industries, a Saskatoon-based tire recycling company, has initiated legal action against the Province of Saskatchewan, Tire Stewardship of Saskatchewan (TSS), and TSS CEO Stevyn Arnt. The lawsuit, filed on November 8, alleges breach of contract and "injurious falsehoods," seeking $10 million in damages from the province and additional punitive damages from TSS and Arnt.

The claim centers on Shercom's investment in rebuilding its facility after a 2016 fire, with assurances from the province for long-term contracts and tire supply. Shercom alleges that its recycling operations, which previously processed 50 million pounds of scrap tires annually, were effectively sidelined when TSS excluded the company from bidding on new contracts. As a result, the company has laid off 40 employees, with an additional 79 layoffs expected in December.

The lawsuit also accuses TSS of favoring California-based Crumb Rubber Manufacturing, which Shercom claims is merely shredding tires for shipment out of the province instead of producing value-added recycled products, such as playground rubber and landscaping materials.

Premier Scott Moe defended the province's regulatory role through TSS, stating its primary aim is to ensure proper tire recycling and prevent tires from ending up in landfills. However, critics, including the opposition NDP, argue that Shercom’s exclusion has stranded millions in assets and jeopardized local jobs. The legal claims remain untested in court, and the province and TSS have until late November to file their defense.

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