Greater Shepparton City Councillors will meet on Tuesday, April 11 to decide on huge waste and recycling contracts worth tens of millions of dollars over 15 years.
The contracts, said to be valued at more than $75 million, and known as the Resource Recovery Collective Hume Tender Award, are likely to be the biggest awarded by the councillors during their terms and possibly in their local government careers.
Councillors originally considered a recommendation by council staff at their meeting on March 21.
That recommendation was to award the kerbside bin collection, handling and disposal contract to Cleanaway for an initial period of seven and a half years with an option to extend for a further seven and a half years.
It also recommended that Western Composting be awarded the FOGO, or food organics and garden organics, processing contract for an initial seven and a half years with an option to extend for a further seven and a half years.
If approved, the recommendation would authorise council chief executive Peter Harriott to enter negotiations and execute the contract documents as required.
Instead of approving the recommendation though, in a split vote, the councillors voted it down and deferred a decision until or before April 17 to receive more information.
The recommendation that Cleanaway be granted the kerbside collection and disposal contract ahead of likely local competitor Foott Waste has attracted public criticism.
The criticism focuses on the ASX-listed company, which has reported a $49 million half-year profit, is having trouble meeting its collection obligations for Hobsons Bay City Council in Melbourne, has faced fines of more than $500,000 for environmental breaches in NSW and is facing industrial action by its workers in multiple jurisdictions.
Critics of the recommendation say appointing a local company would bring greater economic and social benefits for the region.
Cleanaway, however, has defended itself on the various fronts, including from union accusations it is treating its drivers “horrifically”.
On the day councillors will vote on the waste contracts, Cleanaway workers will take industrial action at five depots in NSW and the ACT.
“Cleanaway supports the rights of our employees to undertake protected industrial action as part of the enterprise bargaining process,” a Cleanaway spokesperson said.
“Cleanaway has been engaging with our employees to achieve a fair and reasonable enterprise agreement for all parties.
“We treat all our employees with respect and want the best possible agreement that recognises the important essential services that they provide to customers and community.
“Cleanaway will continue to engage with our employees at each site to reach an agreement with the best possible outcome for all parties.”
Cleanaway emphasised that it already had local links to the region.
“Eleven employees of Cleanaway with over 15 years’ service, including the branch manager with over 20 years’ service, live in the Shepparton region,” the spokesperson said.