Waste disposal contractors threaten to strike over outstanding payments-offer Council new ultimatum

Waste disposal contractors threaten to strike over outstanding payments–offer Council new ultimatum

Nov 21, 2018 News

City garbage contractors are once again threatening to withhold their services over non-payment of monies owed to them by the Georgetown Mayor and City Council (M&CC).
Last week, the contractors, Puran Brothers Disposal Services and Cevons Waste Management Inc., wrote to the M&CC threatening to pull their services, for not being adequately remunerated for their work.
The companies disclosed that they have not been paid since June, despite promises by the Council to fulfill its financial obligations.
Both companies said their current financial positions do not permit them to continue working without pay.
Alluding to the letter sent to the office of the Council, Manager of Puran Brothers Waste Disposal, Kalesh Puran, noted that the company has been working with the Council for the last six months without pay.
The Manager said that the municipality was given an ultimatum to pay or the company will be pulling its services by November 26.
“It’s not that we want to, but the company is constrained financially,” he added.
Similar correspondence was sent to the Council by Director at Cevons, Morse Archer.
In his letter, Archer called on the administration of the Council to make substantial payment by November 26, before the company can consider continuing its work.
The M&CC owes the companies a collective $148M for waste disposal services.
For Puran Brothers Inc., City Hall owes $73M in arrears for services rendered from June 2018 to date. On the other hand, the city owes Cevon‘s Waste Management $75M for services rendered from May 2018 to date.
The operational cost for both companies is about $15M per month. Representatives of both companies have also indicated that rising fuel prices make it increasingly difficult to maintain the level of service needed to care for the city without the requisite compensation.
The two companies have been considering strike action since last month.
The strike is expected to take effect if measures are not taken to have the payments completed.
The companies have since written to Minister of Communities, Ronald Bulkan, requesting a meeting to seek swift resolution on the issue.
Last year, the two Waste Management companies discontinued their services to Georgetown after the Mayor and City Council racked up a total of $300M in outstanding payments to them.
At the time, M&CC had released a statement that the work of these waste disposal companies accounts for almost 10% of the Council’s budget.
Together, the two companies provide a plethora of services to Georgetown, including drainage, enforcement of compliance with the city’s public health by-laws, maintenance of cemeteries, markets, roads, pumps and allied facilities.

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