The contractor that sorts blue box materials has withdrawn its $21 million lawsuit against the City of Hamilton.
Canada Fibers Ltd. launched its claim last fall alleging that out-of-date sorting equipment, a changing marketplace for recyclables, and a spike in contaminated material has affected its ability to turn a profit on recycled goods.
Ancaster Councillor and Public Works Chair Lloyd Ferguson notes that Hamilton’s blue box contamination rate, which represents ruined or non-recyclable items that need to be thrown away, has soared to about 14 per cent.
Ferguson says the biggest problem is people aren’t rinsing out jars and containers before placing them in the bins, which results in them being sorted and sent to landfill.
Ferguson adds that the city doesn’t permit “anyone who is suing us to bid on our work.”
By withdrawing its lawsuit, he notes that Canada Fibers will be eligible to bid on the renewal contract, which is currently out to tender.
A brief statement issued on Thursday afternoon stated that “all outstanding issues between the City of Hamilton and Canada Fibers Ltd. have been resolved to the mutual satisfaction of the parties.”
Comments