The company that has been recommended for a multimillion-dollar Greater Shepparton waste and recycling contract has been embroiled in ongoing union disputes and can’t supply enough drivers to collect the rubbish in at least one Melbourne council area.
ASX-listed company Cleanaway has been recommended by Greater Shepparton City Council staff for waste and recycling collection contracts for up to 15 years.
At its meeting on Tuesday, March 21, councillors voted to defer a decision on two waste and recycling contracts worth more than $75 million so councillors could receive more information.
Councillors were considering whether to award the contracts to Cleanaway and Western Composting Technology.
The contracts would have been for seven and a half years with an option to extend for a further seven and a half.
The long-term contracts are for the collection, transportation and processing and disposal of co-mingled recycling, glass, food and garden organics and general waste.
It’s believed Cleanaway was recommended ahead of local company Foott Waste Solutions for the kerbside bin collection, handling and disposal contract.
The company is currently the service provider for Hobsons Bay City Council, an area of approximately 66 square kilometres, based around Williamstown and Altona, on Port Phillip Bay, 10km west of central Melbourne.
The council’s home page currently carries a warning to residents that their rubbish and recycling may not be collected as usual.
“Hobsons Bay and neighbouring councils are experiencing delayed waste collections due to driver shortages,” the warning across the top of the municipality’s website says.
“Unfortunately, disruptions are expected to continue whilst more drivers are recruited and trained, which takes at least six weeks.”
The company is also embroiled in ongoing disputes with its workers.
The Transport Workers’ Union has accused Cleanaway of conducting “ideological warfare against its workforce”, including “attempts to scrap or reduce overtime and penalty rates, extend a standard day from eight hours to 12 hours, and increase rosters to a seven-day period”.
The union also claims residents in the City of Sydney have endured months of “waste chaos” due to understaffing “by as much as 40 per cent”.
On February 23, Cleanaway announced a $49 million half-year profit.
At the time, apart from Cleanaway itself, TWU national secretary Michael Kaine said councils also had a responsibility to ensure workers performing essential duties for the community were treated fairly.
“Cleanaway needs to clean up its act, but councils have a responsibility here too. When work is outsourced to a company with a reputation for treating workers poorly, it’s up to the council to ensure workers are paid fairly and able to serve the community safely,” he said.
“Cleanaway’s vicious attacks on workers’ pay and conditions are at odds with the strong financial performance of the company, which was built on the efforts of the workforce.”
It is unclear when exactly Greater Shepparton City Council will make a decision on the contracts, given its decision at the last council meeting deferred a vote until or before April 17.
Attempts have been made to contact Cleanaway for comment.