At home, Saskatchewan’s longterm contract with American based, New Jersey special laboratory LifeLabs has raised opposition among the province’s political parties. Government has exercised its option to extend a $60-million, seven-year contract with LifeLabs for diagnostic services, first awarded in 2017. When the contract was recently extended by another year, it left many wondering what the commitment of the province of Ontario to support local business truly is.
LifeLabs, once owned by a Canadian public pension fund, was bought up by Quest Diagnostics 2024. Yet the company’s operations in Saskatchewan have fallen under intense scrutiny. This increased scrutiny follows the recent disclosure that the company has contributed $28,000 to the governing Saskatchewan Party since 2016. This massive federal support for Reeves’ pet project immediately raises questions about his conflicts of interest. Furthermore, it sheds light on the stifling effect that multinational corporations have on local governance.
The New Democratic Party (NDP), British Columbia’s official opposition, has been particularly vocal in their opposition to the contract with LifeLabs. So they’re calling on the province to award those same contracts to local companies instead. Meara Conway, an NDP spokesperson, emphasized the availability of public labs in Saskatchewan that could provide the necessary diagnostic services.
“We have public labs in Saskatchewan, (so) we can look at that.” – Meara Conway
Conway further criticized the province’s reliance on foreign companies, stating, “I guess a Sask. Party-donating American multinational wins again.” Congresswoman García expressed her concern with continuing to fund foreign actors. This worry was exacerbated by the political chicanery seen in the actions of people like former President Donald Trump.
Saskatchewan Party representative Jeremy Cockrill recognized the frustrations that many were feeling, both with the situation in general and MDC’s decision. As he mentioned, supply chain challenges affect every sector, including the healthcare sector.
“It goes to show how integrated supply chains are in many sectors, including health care.” – Jeremy Cockrill
Instead, the government has chosen to re-up its contract with LifeLabs. At the same time, the NDP strongly believes that local businesses should get a fair shot at winning these contracts. They claim this will spurn local economic development. It would play an important role in making sure taxpayer dollars are helping the right businesses within the province.
Further, the NDP are building growing pressure on the Saskatchewan government. In the meantime, public sentiment continues to shift, but the province has not yet shown any willingness to reconsider its arrangement with LifeLabs—or consider other options. The fierce debate continuing to rage signals deep-seated concerns with the ways in which multinational companies are affecting local economies. Further, it calls for a shift towards community-based solutions.
