Tyrone Reid, Enterprise ReporterA massive shutdown of the solid waste management sector was averted Wednesday after the Ministry of Local Government and Environment yielded to an ultimatum issued by waste management contractors, on Tuesday.
A hurriedly called meeting was held Wednesday after a Gleaner exclusive revealed that some livid contractors, who service the parishes of Kingston and St. Andrew, St. Catherine, St. Thomas and Clarendon, gave the Government a 24-hour ultimatum to pay up money owed to them, or face a massive shutdown of the sector.
The contractors said they were owed in excess of $100 million.
During the meeting, Dean Peart, the Minister of Local Government and Environment, informed them of the measures that would be put in place to quell the dispute. The first was a payment for outstanding minimum wage adjustment.
"The amount of $10 million in outstanding 'minimum wages' claim for 2002 will be paid early next week to the respective contractors," said a release issued by the Ministry, Wednesday.
It also pointed out that Minister Peart told the approximately 33 contractors in attendance that the bulk of their claim was currently being audited and that he would meet with the executive body of the Waste Management Association, the National Solid Waste Management Authority (NSWMA) and the auditors within the next two weeks in a bid to bring clarity to the issue.
Additionally, the minister pledged that the required 10 per cent performance bond, which is needed as part of the terms of reference for bidding on the new contracts, would be revisited for legal opinion.
Could not afford
Previously the contractors argued that they could not afford the bond, especially in light of the fact that the Government owed them millions of dollars.
Mr. Peart also extended the deadline for the submission of tenders for the new contractual period from May 15 to May 28.
However, while scoring some major points during the hurriedly called meeting, and calling off the lockdown, at least one contractor was still unhappy after leaving the ministry's Hagley Park Road offices.
"We are still not happy because the bulk of the claim has been delayed and there is no point for it to be delayed," the contractor told The Gleaner, Wednesday.
tyrone.reid@gleanerjm.com