Dive Brief:
- As the city of Detroit moves forward with sanitation services privatization, haulers are working to clear a backlog of curbside trash piling up as workers use vacation and sick days before the transition officially takes place.
- Two haulers, Rizzo Environmental and Advanced Services, will take over the city's waste and recycling services, beginning on May 5 and in June, respectively.
- Training workers has also compounded the issue, as many of the previous municipal workers must learn how to operate new equipment. The companies extended job offers to 125 city workers, through some declined. According to the Detroit News, 40 workers will stay on at Detroit's Department of Public Works.
Dive Insight:
The Detroit City Council voted to privatize the city's waste and recycling services in November of 2013. Rizzo Environmental will receive around $49.1 million for servicing 106,000 customers while Advanced Services will receive $73.5 million for services at 141,000 households, according to the Detroit News. The contracts are anticipated to save the city $6 million annually.
