Date: September 25, 2012
Source: City of Seattle Mayor's Office
Waste Management Inc. (Houston, TX) agreed to pay the City of Seattle $1.24 million to cover missed waste and recycling collection during an eight-day worker strike that began July 25. The settlement, which will be credited to residential and commercial customers affected by the strike, stems from penalties defined in the contract between the hauler and the city. Usually, those provisions are not enforced, but Seattle pressed its position and was pleased with the result which it touted in a press release issued by the city's mayor Mike McGinn. The outcome is likely to embolden other municipalities to enforce similar penalties should worker-strikes or similar disruptions occur. "This was the longest garbage strike in the city's history, and thousands of residents and businesses were inconvenienced," McGinn said. "The good news is that our contract with Waste Management provided for substantial performance penalties for a strike lasting more than seven days -- and we were able to use that provision to help bring an end to the strike.
PRESS RELEASE
September 25, 2012
Mayor McGinn announces $1.24 million settlement with garbage hauler
Seattle households affected by strike to receive $10 credit on solid waste accounts
SEATTLE - Mayor Mike McGinn today announced a $1.24 million settlement with Waste Management over missed garbage, recycling, and yard waste collections due to last month's eight-day strike by Teamsters Union drivers.
The mayor said the settlement money will be shared by households and businesses impacted by the strike: residential accounts will receive credits of $10 on their solid waste bill for the November-December billing period (residents must have a current solid waste account with the City of Seattle at the time of the billing to receive the adjustment.) Condominiums, businesses and apartments will receive a $50 credit per current dumpster account.
Waste Management's service areas, in Northwest and South Seattle, include 90,000 households, 2,200 apartments, and 4,500 businesses. Services to all of these customers were delayed -- from 5 to 12 days, depending on location and type of service -- as a result of the strike.
"This was the longest garbage strike in the city's history, and thousands of residents and businesses were inconvenienced," McGinn said. "The good news is that our contract with Waste Management provided for substantial performance penalties for a strike lasting more than seven days -- and we were able to use that provision to help bring an end to the strike.
The mayor said the company worked diligently to fully recover all services, cooperated with the City to reach a prompt settlement, "and is back to performing their usual good service."
The strike, which involved Teamsters Local Union No. 117 recycling drivers with support from Local Union No. 174 garbage and yard waste drivers, ended August 2, after eight days -- the day after McGinn announced that the city would begin assessing fines against the company for non-collection of garbage, recycling, and food and yard waste.
"Waste Management normally gives very good service to our customers," McGinn said. "This strike was an unfortunate aberration which we hope not to be repeated."
For more information contact:
Aaron Pickus (206) 684-4000
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