Buffalo's recycling program will be privatized in November, a move that Mayor Anthony M. Masiello said will save $758,000 without eliminating any permanent full-time jobs.
About 43 employees who pick up waste from the blue recycling bins will be transferred to garbage collection chores, and 55 seasonal employees will be terminated. Public Works Commissioner Joseph N. Giambra said the switch should virtually eliminate overtime costs, except during snow emergencies.
But the union representing sanitation workers is fighting the move, claiming officials are inflating the program's true costs. Labor leaders also claimed residents will see diminished service when a private company uses "transient" workers to pick up recycling.
"They don't know the areas of the city," said William D. McGuire, president of American Federation of State, County and Municipal Employees Local 264. "They don't know our routes. And there won't be any flexibility when it comes to services. It's going to really get out of hand."
Masiello disagreed, predicting that property owners will see improved service.
"There have been a lot of problems with recycling," he said. "Overtime is rampant. We're not finishing our routes on time. We've had to resort to weekend pickups."
Three companies submitted bids for the recycling job. BFI submitted the lowest bid of $1.57 million annually in each of the next five years. Masiello said under the contract, at least 30 percent of BFI's work force must be be minorities and 70 percent must be city residents.
The agreement also mandates that employees be paid at least the minimum salary required under the city's so-called "living wage law" for vendors that have large contracts with the city. The ordinance requires that workers be paid at least $8.08 per hour, or $9.08 if health coverage is not provided.
BFI will use city recycling trucks, but will absorb all fuel, insurance and maintenance costs. Residents will not likely see any changes in recycling policies, Masiello said.
The administration believes that it can implement the privatization program without getting approval from the Common Council or the union. Officials said funds have already been appropriated in the public works budget to cover the costs of the contract, negating the need for Council approval. Masiello further argued that because the plan does not eliminate any permanent unionized employees, it does not have to be negotiated with labor leaders. McGuire disagreed and has already started lobbying against the privatization in meetings with Council members. He also intends to contact the Public Employment Relations Board.
McGuire accused public works officials of intentionally undermining recycling efforts in recent months in order to drive up costs. He said crews assigned to recycling have been shifted to garbage pickup, causing delays and higher overtime bills.
"I'm not blaming the mayor. I'm blaming the public works administrators, because I think it was all done maliciously. I think they inflated the costs of recycling."
McGuire claimed the union has volunteered to work with the city to make recycling operations more efficient, but he claimed their offers were ignored.
"We're not in the business of trying to break the city. We're trying to help the city," McGuire said. "We could have showed them how to save money."
Union leaders have long argued that any savings gleaned in the early years of privatization are often erased in future years when companies renegotiate contracts.
Giambra said the BFI agreement freezes annual costs for five years.
"If it doesn't make sense to us after the contract expires, there's nothing saying that we can't go back into the business, or seek a contract with another company," Giambra said.
Masiello announced the privatization plan a few weeks after the city angered the union by announcing plans to end all dumpster-servicing contracts with about 200 businesses, community groups and schools. Buffalo News