Ontario, California, USA – On January 31rd, 2016 California`s largest recycler rePlanet closed 191 recycling centers and laid off 278 employees throughout the State of California. Following the most recent reduction in State fees on January 1st 2016 and after enduring twelve months of unprecedented declines in commodities pricing of aluminum and PET plastic, coupled with the mandated rise in operating costs as a result of minimum wage increases and required health and workers compensation insurance, the company has concluded that operation of these recycling centers is no longer sustainable.
This restructuring will allow the remaining 800 employees to continue providing recycling services in the communities within which rePlanet operates the 350 recycling centers that have not closed, as long as current conditions remain unchanged. The company has participated in numerous meetings over the last year with CalRecycle to try and resolve issues surrounding the Beverage Container Recycling Fund, which is critical to the overall success of this program.
Change is needed and rePlanet will continue to work diligently with the State of California and the Division of Recycling to develop solutions that will keep containers out of landfills and ensure the viability of the recycling industry long into the future.
rePlanet knows these site closures will have a significant impact on its employees, grocer partners, customers and the recycling community at large. If and when the State makes the necessary changes that allow the company to operate profitably, it welcomes the opportunity to reopen as many recycling centers as possible.
Source: rePlanet, LLC