The Amalgamated Transit Union (ATU) has lost its court battle to keep Saskatchewan Transportation Company (STC) open.
In a 45-page judgment, Justice L.J. Schwann wrote that the budget decision to wind down the Crown was not “legally flawed” and within the law.
“This was a decision made by the Government of Saskatchewan for economic, policy and political purposes and it is not reviewable by the court,” wrote Schwann.
It means STC will close the doors May 31 as planned.
Last week, the ATU argued the government’s decision made in the March budget breached the Crown Corp. Public Ownership Act and violated the Canada Labour Code.
In the budget, the government argued that STC was unsustainable and would need a subsidy of $85 million over the next five years to continue operating.
“Wind up efforts will continue accordingly. We want to thank the court for rendering the decision quickly,” STC Minister Joe Hargrave said in a written statement. “We are also pleased that the court supported our government’s decision to define the work ‘privatize’ in legislation, noting the omission of any such definition in the original legislation was ‘glaring and surprising.'”
With this court judgment, STC will cease operation and the selling of assets will begin and be completed by March 31, 2018.