A review of the procurement practices of the Tire Stewardship of Saskatchewan (TSS) by former deputy minister of environment Cam Swan has concluded with a report confirming that the Crumb Rubber Manufacturing (CRM) plant in Moose Jaw will be the province's southern recycler.
Background
TSS was established in June 2017 by the Retail Council of Canada and the Western Canada Tire Dealers to serve as the scrap tire recycling program operator in Saskatchewan.
On April 26, 2023, Tire Stewardship of Saskatchewan (TSS) announced changes to its scrap tire processing program aimed at having multiple scrap tire processors, one in the south and one in the north — the northern processor was assumed to be Shercom Industries outside Saskatoon, which was established in Saskatchewan in 1993 and remains locally owned.
However, on April 30, TSS's contract with Shercom Industries was allowed to expire, and TSS said they would re-issue a Request for Proposals (RFP) for a northern-based tire processor or processors.
Shercom told media that they disagree with the decision. Shane Olson, Shercom's founder and owner, accused TSS of bullying Shercom in contract negotiations only to then give virtually all of the province’s scrap tire resources to CRM, an American company.
Shercom's contract lapse caused an uproar, with Saskatoon's Chamber of Commerce writing a letter of protest. Shercom closed their plant and laid off dozens of workers.
The controversy prompted Premier Scott Moe to order a pause on RFPs for a northern processor and appoint Cam Swan for a review.
Review concludes with approved action plan
The major news from the province's statement on the review's conclusion is that TSS will pursue a new contract with Shercom — and CRM will continue to be the processor for the southern portion of Saskatchewan, putting to rest any concerns to the contrary.
"We are confident in a strong and successful future for tire recycling and processing in Saskatchewan," said Christine Tell, minister of environment. "We want to thank Mr. Swan for his work, and look forward to a solid collaborative relationship between industry partners."
The TSS board has committed to implement the following action steps, which will aim to improve the program:
- Strengthen TSS procurement practices through SaskBuilds and Procurement.
- Update the current payment approach and model to align with other jurisdictions.
- Ensure the environmental goals of the program are met with improved communication between industry and TSS management.
"We thank Cam Swan for the approach taken during the review and appreciate all stakeholders were consulted including retailers, processors, and collectors," said Colin Fraser, TSS Board Chair. "TSS looks forward to continuing as the program operator in Saskatchewan, with the goal to run the best tire recycling program that meets the expectations of consumers and our obligations to the environment."
The product stewardship program for TSS will be extended twelve months to accommodate this plan, and Swan will continue to be engaged to help facilitate implementation of the action plan and ensure all parties are satisfied.
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