Shercom cuts 79 more jobs as U.S. company continues monopoly over Sask. tire recycling
CTV
A former tire recycling company in Saskatoon is announcing additional layoffs months after a dispute with the provincial government.
A former tire recycling company in Saskatoon is announcing additional layoffs months after a dispute with the provincial government.
Shercom Industries said it will lay off 79 employees in its manufacturing division on Dec. 2.
"These decisions are weighed heavily and it's something we've talked about now for the last ten months," Shercom CEO Shane Olson said. "We have some staff with 10, 15 and 20-year tenures. It is a far different direction than our previous 30 years."
Olson said the company had a workforce of roughly 140 people during its peak in 2022. After December's layoffs, the company will be down to a "skeleton" staff with roughly 20 people remaining with the company.
The staffing hits first began last spring when the company was locked in a dispute with the provincial government and the Tire Stewardship of Saskatchewan (TSS), a non-profit organization overseen by the Ministry of Environment, over Shercom’s ability to process recycled tires in Saskatchewan.
At the time, the tire stewardship awarded rights to recycle tires in Saskatchewan to California-based Crumb Rubber Manufacturers (CRM), which essentially forced Shercom to shut down its processing plant and lay off more than 60 workers.
Olson said the plant was built in 2016 for millions of dollars, and the impending layoffs are a direct result of the decision to reward CRM with exclusive rights.
