First stage of bus company shutdown underway

Friday marked the day that the Saskatchewan Transportation Company accepted its final batch of freight for delivery. All freight will be delivered over the next week and a half, until the shutdown of passenger services, which remains on schedule for May 31.

“It’s a challenging time, but our staff have been completely dedicated to making sure that our customers and our customer service remains high,” said STC executive director Candace Caswell.

On April 5, an order-in-council was signed that provided the STC with $17.1 million, an estimate of what may be needed for them to operate for the fiscal year. Some of that money will be going to KPMG, an accounting firm that has been hired to liquidate STC assets.

The firm is in the process of determining a plan that Caswell said will be public and transparent. There have been no decisions made so far about what will be sold to whom, but she said the firm will work to get the best value for the assets. A bidding process will be opened up after May 31.

A portion of the money will be used for the January to May 2017 operation costs as well as salaries for employees who stay on past May 31 to complete the administrative side of the shutdown. It is unclear at this time how severance pay will factor into the budget or what the total shutdown costs will be.

The Amalgamated Transit Union that represents STC is awaiting a court decision that may temporarily block the shutdown and result in a review of the Sask. Party’s decision.

Caswell had no comment on what the potential impact may be on STC if Court of Queen’s Bench Justice Lian Schwann rules in favour of the ATU next week, but the Sask. Party has maintained that the government has the authority to shut STC down.

More will be known once all STC assets are out of use and KPMG can finalize and make public its liquidation plan.