rePlanet Closes 191 Recycling Centers and Lays Off 278 Employees
On January 31, 2016 rePlanet announced that it has 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 our remaining 800 employees to continue providing recycling services in the communities within which we operate the 350 recycling centers that have not closed, as long as current conditions remain unchanged.
We have 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.
We know these site closures will have a significant impact on our employees, grocer partners, customers and the recycling community at large. If and when the State makes the necessary changes that allow us to operate profitably, we welcome the opportunity to reopen as many recycling centers as possible.
We understand you may have concerns regarding the impact of these closures and we encourage you to please share your concerns by reaching out to CalRecycle Office of Public Affairs: firstname.lastname@example.org or 1-800-732-9253. For information on rePlanet centers serving your area, please refer to our location finder at http://www.replanet.com/locations