Dive Brief:

• The decision to privatize collections on Toronto, Canada's east end is now planned to be delayed until after Jan. 18 so the solid waste management services team has time to prepare an additional report regarding impacts of privatization, as reported by The Star.
• In Sept. 2015, the decision to privatize was delayed due to "unanswered questions" surrounding a staff report which indicated privatization would cost the city more. Since then, city staff outlined changes to the plan including new data, budget analysis and a new deal reached with Toronto Civic Employees Union Local 416.
• The additional report will further analyze that tax dollars are being used wisely and decide if privatization will, in fact, save the city money. City staff reported there is an $11 million annual savings from privatizing the west end, as reported by the Star.

Dive Insight:

While privatization will have obvious financial impacts on the city, it will also impact the lives of thousands of workers who depend on jobs that the city has provided. The city made an important step to reach a deal with CUPE Local 416 and ensure that workers will have the opportunity to transfer to new positions, should the city contract out their current positions.

While the plan to privatize seems to be making slow yet steady progress, not everybody is on board with the idea. Councilor Joe Mihevc called the plan "ideologically driven," as reported by the Toronto Sun.

"I think it would be absolutely disastrous for the city,” Mihevc said to the Sun. "The literature compiled by academics and researchers across North America notes that the best systems in terms of good value and cost control are actually mixed systems. That’s what we have right now."

Figuring out the best ways for private companies to operate in big cities has been a hot trend across North America in 2016. This year the industry watched New York and Los Angeles both face big decisions regarding franchising systems. In L.A. specifically, the Los Angeles Board of Public Works has already passed a vote to award 11 franchise zones to seven private companies, which will strengthen their footholds in the market and aim to increase diversion while decreasing noise and truck emissions.