In a classic example of the law of unintended consequences, the state’s $15/hour minimum wagerules are a contributing factor in its demise.
“With the continued reduction in state fees, the depressed pricing of recycled aluminum and PET plastic, and the rise in operating costs resulting from minimum wage increases and required health and workers compensation insurance, the Company has concluded that operation of these recycling centers and supporting operations is no longer sustainable,” a company spokesman said in a statement Monday.The company has shut doors at 284 sites throughout the state.The closure led the group Consumer Watchdog to call on the state to step in and require all grocery and convenience store chains to begin redeeming bottles and cans.“We warned just months ago that the bottle deposit program was in crisis and today’s closure shows consumers are being left in the lurch by the failure of the state to keep recycling centers open,” said consumer advocate Liza Tucker in a statement. “Governor Newsom needs to tackle this problem personally and make reform of the broken bottle deposit system a top priority this fall. CalRecycle has failed to deal with the problems we have raised and they have now become a full blown crisis for consumers and recycling in California.”
Via DTW