A recommendation was put to councillors at the March meeting that would have the ASX-listed Cleanaway awarded the contract for kerbside bin collection, handling and disposal ahead of local firm Foott Waste.
The tender is part of a major, long-term, tender offer for waste collection and disposal, which, in total, is for more than $75 million over 15 years.
Councillors voted down the motion and instead deferred making a decision until on or before April 17, for councillors to be provided with more information.
In April last year, Cleanaway Equipment Services Pty Ltd was convicted and fined more than $600,000 in the NSW Land and Environment Court for two water pollution offences and one offence for failing to immediately notify that state’s Environment Protection Authority of a pollution incident at its Queanbeyan premises in May 2020.
The company is also struggling to meet its waste collection obligations as the service provider for Hobsons Bay City Council in Melbourne, with waste collection from many households delayed due to a lack of drivers.
Cleanaway is also embroiled in ongoing disputes with its workers, with the Transport Workers’ Union accusing it of attempting 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”.
All this as it announced a $49 million half-year profit in February.
Despite the questions over its capability, environmental compliance and worker relations, the company said it will be a good corporate citizen should it be awarded the major contract.
“Cleanaway already has a presence in the area with a depot and resource recovery facility on Old Dookie Rd, Shepparton,” a company spokesperson said.
“Nearly $2.5 million was invested to upgrade the site using predominately local contractors.
“In the event the Greater Shepparton City Council contract is awarded to Cleanaway, many jobs in the local area will be created.
“It is important to note that 51 Cleanaway employees live and work in Shepparton.
“It is intended that employees for the contract will be recruited from the local area.”
Cleanaway said it has complied with all requirements of the tender process.
“Cleanaway entered into negotiations for the council contract in good faith,” the spokesperson said.
“Cleanaway respects the independent procurement process and has complied with all probity requirements.”
They also said the company takes its environmental obligations seriously.
“Cleanaway takes compliance with the legal and regulatory requirements relating to the operations of our facilities very seriously,” the spokesperson said.
“The environment and safety are foundations of Cleanaway.
“Cleanaway also accepts that its social licence to operate requires that it go beyond simply meeting its legal and regulatory compliance obligations.
“Following incidents, Cleanaway takes the opportunity to learn and to consider means to further improve environmental risk management and safety risks.
“This is undertaken with a view to minimising the risk of any future incident of a similar nature from occurring across all Cleanaway sites.”
The company said driver shortages in Hobsons Bay have been beyond their control and maintained its negotiations with its workers have been carried out “in good faith”.
“Like many other industries, Cleanaway has grappled with worker shortages as a result of a number of factors including record low unemployment,” it said.
“In instances of staff shortages Cleanaway has a number of contingencies in place to ensure impacts, if any, are kept to a minimum.
“It should be noted that there are no Cleanaway staff shortages in Shepparton or other regional businesses and all collections are completed on schedule.
“Cleanaway entered into bargaining with the TWU (Transport Workers Union) in good faith to ensure our employees receive the most fair and reasonable agreement.
“Cleanaway has not only bargained in good faith but has bargained for the purposes of achieving an enterprise agreement.
“In November 2022 the workforce across Regional Victoria (including Shepparton) voted on and accepted a new Enterprise Agreement with no industrial action.”
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