Waste Management Drops Subcontractor in Texas City

Waste Management Inc., which just signed a 10-year, $187 million contract with the city of Fort Worth, Tex., has terminated its contract with Resource Waste Services, its subcontractor for the collection and recycling program. WMI ended its arrangement with Resource Waste Services Oct. 4. Along with collection of recyclables, the program collected solid waste as well as yard waste and compostables from residents in the Texas city.

Waste Management signed the contract March 31, 2003.

While the company dropped Resource Waste Services, the company will be working with Knight Waste Services Ltd. as its new subcontractor. Knight will begin collection services Oct. 20. In the meantime Waste Management will undertake the collection of both solid waste and recyclables.

The program covers about 157,000 households and about a half million people. According to Waste Management RWS was in breach of its contract with Waste Management. The company added that will not be any interruption in services.

According to a report by the Fort Worth Star-Telegram some problems Resource Waste Services faced included the following:

*It was accused in lawsuits of failing to pay temporary workers who assembled recycling carts distributed to Fort Worth residents, trespassing, dumping trash and failing to pay off lease agreements.

*It was released as a subcontractor by Toter, the company that builds and maintains residents' trash and recycling carts. Resource Waste had been responsible for picking up yard waste, but Waste Management officials took over that service in July.

*It was identified as being in bad status with the Texas comptroller's office, which is responsible for collecting taxes, and it was accused of failing to file one or more required tax reports.