Tamworth council is set to take over and staff the Materials Recycling Facility at the city's tip - but employment arrangements for the 38 staff employed at the Challenge business are still up in the air.
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Disability service provider Challenge Community Services has employed staff for 30 years sorting waste from recycling at the facility.
The disability service promised on Thursday that all 38 staff will maintain employment in the organisation.
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On Thursday, Tamworth mayor Russell Webb announced Tamworth Regional Council had purchased the facility for an undisclosed sum and would operate and staff the facility from December 1.
He said running the facility directly would keep the city at the cutting-edge of recycling.
"This is going to assist our community, in the future, into how we manage recycling, will help make what we do more efficient, more effective, and obviously more economically affordable for our community," he said.
The two organisations were locked in negotiations for more than 12 months after council amended a longstanding contract for kerbside recycling waste held by firm Cleanaway, by splitting it in two.
Challenge Community Services Chief Executive Officer Stephen Doley said the organisation had held a meeting on Wednesday night with affected staff, which he described as a "fantastic meeting".
He said the agreement represented "the end of an era". The service has owned and operated the facility since 1992.
The two organisations have yet to come to an agreement with regard to employment, he said.
Mr Doley said "our commitment is absolutely employment for everybody ... and that could well be absolutely staying here".
He emphasised the need for "choice" by their staff, but refused to commit that no staff would be involuntarily shifted.
"Our commitment last night, to all of our staff here, is to sit down and have individual conversations around what does future opportunities look like for you? And if that is, you know, staying here and operating, fantastic, but if that's looking at some of our other opportunities, then we want to explore those with those individuals," he said.
A spokesperson for Tamworth council confirmed the local government will staff the facility with existing council staff plus some additional employees they will soon recruit.
"Any additional positions will be recruited through Council's usual processes and would be open to any member of the community. Recruitment will be based on merit and any experience in this field will be viewed favourably," the spokesperson said.
"Existing Challenge staff can apply for any positions that become available."
Mr Doley said Challenge will invest all of the proceeds of the sale locally, developing additional work opportunities for people in the local community.
"I anticipate that we'll have something formed up for other opportunities - not just this one here - within the next couple of months."
He said several staff have already moved on to other places of work.
In a media release, Tamworth council said the priorities for both parties in negotiations had been continued employment opportunities for Challenge staff and people with disability, the continued delivery of recycling services for the Tamworth community, ongoing financial sustainability for both parties; and preserving and building on a positive collaborative relationship between parties.
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