Biffa has responded to losing a local authority contract over contamination problems.
A mutual agreement to end the contract came after Biffa wanted to pass on to the council the extra costs of dealing with complaints from processors that recyclates from its service in Middlesbrough were of too poor quality.
Middlesbrough Council said the contract had become unsustainable after Biffa had to implement a stricter collection policy which resulted in it refusing to collect 12,000 bins over the span of a few weeks, which the council said caused “reputational damage and resident dissatisfaction”.
Talks in July led to Biffa offering a solution that would mean an increased council cost of £400,000 a year.
Subsequently, council officers estimated that bringing the service in-house would be an extra £300,000 so that decision was backed by councillors on 4 September. Sixteen Biffa staff will transfer to council.
Biffa said: “A culmination of factors meant the council felt that the best future for the town’s recycling service was running it in-house.
“This mutual and amicable parting does not, and should not, reflect badly on the high service standards provided by Biffa in Middlesbrough for some years, as the council has confirmed.”
Biffa described its relationship with Middlesbrough as “excellent, open and professional”, helping to increased resident participation from 35% to 80% in two years by introducing new collection methods.
It said it would be “very interested” in working with the council again if the opportunity arose.