Date: March 14, 2013
Source: National Solid Wastes Management Association
A waste industry trade group is criticizing the unscrupulous business practices of certain waste brokers as it supports efforts by the New York City Business Integrity Commission (BIC) to apply more fairness to its rules. The National Solid Wastes Management Association (NSWMA) said some brokers will fail to pay haulers (carters), whom they have hired, then close up shop and turn around to establish a new company with the same principal owner under a new BIC license. NSWMA expects the BIC's new regulations will prevent such behavior in the future and has suggested that BIC require brokers to pay haulers within 30 days. Another recurring issue is that of BIC's rate cap which limits what haulers can charge their customers based on volume though they must pay for disposal by weight. For years the NSWMA and its local members have complained that they lose money on their heaviest customers and that the rate cap encourages dishonesty among some haulers who lie about the volume of waste they collect.In submitting its comments, NSWMA's David Biderman also suggested that the BIC should devote additional resources to preventing and investigating cardboard theft which he said "costs BIC licensees between $8 million and $10 million annually."
March 14, 2013
NSWMA Supports Proposed Business Integrity Commission Regulations
Revised regulations would level playing field between NYC waste brokers and carters
The New York City Chapter of the National Solid Wastes Management Association (NSWMA) submitted comments to the New York City Business Integrity Commission (BIC) regarding proposed revisions to rules relating to trade waste brokers. The association, which represents America's private sector solid waste industry, also commented on the BIC's rate cap for carters and the ongoing issue of cardboard theft.
NSWMA supports the BIC's regulatory revisions, which seek to level the playing field between waste brokers and carters in New York City by requiring both to comply with the same reporting and recordkeeping requirements. NSWMA believes these regulations will make it easier for the BIC to monitor broker behavior and ensure they operate properly, in compliance with applicable laws.
In its comment and testimony at BIC's March 11 hearing, NSWMA argued its members repeatedly have complained to the BIC about certain broker behaviors. The association has provided specific examples of brokers not paying carters, closing their business, and then establishing a new company with the same principal owner obtaining a new BIC license. NSWMA expects the BIC's new regulations will prevent such behavior from occurring in the future.
About payment delays, NSWMA Chapter Chair Thomas Toscano stated, "NSWMA suggests the proposed rules be amended to require a broker to pay the carter within 30 days. NSWMA also suggests the BIC take swift and tough enforcement action against violators. This will help ensure that individuals who might otherwise be prohibited from working for licensees will not be part of the New York City solid waste industry."
David Biderman, NSWMA's New York City Chapter manager, who testified at the hearing on behalf of NSWMA, stated, "The continuing widespread theft of cardboard from commercial establishments in New York City costs BIC licensees between $8 million and $10 million annually." Biderman testified cardboard theft is increasing, and an NSWMA member's driver was struck by a van illegally removing cardboard in Queens last weekend. NSWMA members submit pictures and other evidence of cardboard theft to the BIC every week. Biderman added, "NSWMA and its members urge the BIC to devote additional resources to preventing and investigating cardboard theft and stand ready to assist the BIC in this endeavor."
The Environmental Industry Associations (EIA) is the trade association representing the private sector solid waste and recycling services industry through its two sub-associations, the National Solid Wastes Management Association (NSWMA) and the Waste Equipment Technology Association (WASTEC). NSWMA and WASTEC members conduct business in all 50 states and include garbage collectors, processors, recyclers, equipment manufacturers and other service providers. NSWMA's New York City chapter is the association's largest, and includes numerous carters licensed by the Business Integrity Commission (BIC) and transfer stations in New York City. Visit www.environmentalistseveryday.org.
For more information, contact:
David Biderman, 202-364-3743