Economists are not completely sure why this massive increase in resignations is occurring. Theories revolve around dissatisfaction with stagnant pay, an increase in government benefits, and an awareness of the challenges of stressful work that built during the COVID-19 shutdowns.
With remote work more available, and a test period of not working at all, fewer people are willing to step into the daily grind of day-to-day in-person work again.
This mass exodus from the workforce has touched most industries. It is particularly noticeable in the service industries. One sector that is struggling to maintain its level of productivity is the waste management and hauling industry. A shortage of workers in this line of work is not easy to solve and has resulted in some challenging consequences to businesses, cities, and residential customers.
The biggest culprit has been the response to the COVID-19 pandemic. This has not only increased an ongoing worker shortage, but has added further disruptions in service.
David Biderman, the executive direction and CEO for SWANA told 9News, “We certainly face a heightened challenge in the waste sector because we have a perfect storm of increased garbage collection from residents because more people are home and more people are eating at home on a regular basis.”
It’s not only an increase in garbage, but also a decrease in the number of workers. Biderman further explains, “Some hauling companies and some local governments continue to see a high absentee rate among their employees. In some communities, up to 10% of the labor force is absent on a regular basis.”
The Problem Goes Beyond the Pandemic
But this problem did not start with the pandemic. Even before the WHO declared COVID-19 a worldwide pandemic in March of 2020, the waste collection industry was facing driver shortages. This is reflective of a wider licensed commercial driver shortage caused by an aging workforce, lack of recruitment of women drivers, and an increase in federal and state regulations.
More Competition
There are also more opportunities for drivers as companies such as Amazon, grocery and restaurant delivery services, and other delivery and hauling industries continue to expand.
The City of Rockville recently experienced incomplete waste collection and asked residents to leave their trash out for several days to allow for delayed pickup. Without an increase in drivers, the city has warned residents that these types of delays could continue.
To this growing shortage of drivers, the pandemic added further hardship, creating the perfect storm that has hamstrung many hauling companies and city agencies as they try to maintain consistent waste removal services. What consumers see are missed pickups, unreliable service, and broken promises by many city officials.
Residents in Flagler County, Florida, are piling up complaints along with the piled-up garbage that sometimes doesn’t get picked up on schedule. County Administrator Jerry Cameron issued a press release explaining the labor shortage their contracted garbage collector is facing. “They have received zero applications for their advertised positions of ‘helper’ on the truck routes and have had to resort to using temporary agencies. The temporary agencies are also unable to find sufficient staffing to meet the need.”
In Denver, the city has responded to the labor crisis by extending the time between extra trash collection of large items from four to eight weeks and by focusing on hiring initiatives. They are also streamlining routes and offering bonuses of up to $2,500 to new hires. Private haulers in the area are staging career hiring events and offering signing bonuses. They’re promising free education and training to prepare their workers for advancement in the company.
Is There a Long-Term Solution?
Reducing Pickup Frequency
SWANA has found that trash hauling companies are coping in a variety of ways: reducing the frequency of pickups, eliminating some bulky waste collections, and using temporary workers—when they can get them—especially in the busy times after major holidays. Some public sector organizations are resorting to paying overtime or are turning to outside contractors to pick up some of the slack. But employers in the industry realize that these are just short-term stopgaps. They don’t address the need for a long-term solution.
Higher Wages for Workers
In an industry report, SWANA explains that likely solutions will come in the form of higher wages and talking up the potential for waste hauling jobs to offer career growth into management and supervisory roles. Michael E. Hoffman, managing director at Stifel spoke at this year’s WasteExpo. He explained, “The reality is that for a long time, millennials and Zoomers don’t want to drive for a living.” He feels that this is a failure of the industry to work with high school and other vocational programs to promote industry jobs as financially reliable and “honorable.”
The truth is jobs in the waste hauling industry are typically recession-proof and offer long-term career opportunities beyond just driving a truck. SWANA is encouraging employers to offer new hires free training, education, and certification opportunities on their own dime.
Better Safety on the Job
Labor union representatives agree that wages are a contributor to the driver shortage. But they explain that it is more than just the pay.
If workers cannot be confident that they will be working in safe conditions with competitive wages and benefits, they have opportunities waiting for them at other companies looking for drivers with a commercial drivers’ license (CDL).
So, will higher wages alone solve the driver shortage? Not necessarily.
Automation
It will probably take a combination of better pay and technology enhancements. Automation could have a significant impact. Side-loading robotic technology requires a larger initial investment, but it does result in a decrease in labor costs down the road. Reducing the need for more employees in this way can help solve the labor shortage.
But investments in technology and higher wages don’t come without a cost. This will lead to a likely increase in fees for waste hauling services, which will drive up costs for both residential customers and municipalities. Cities working under tight public sector budgets may face some tough debates as fees increase.
Other programs help place recently released inmates in waste hauling positions. One barrier to entry for these workers is the requirement to obtain a CDL, which involves upfront costs. When employers are willing to subsidize this cost, they can fill open positions faster.
Hiring Immigrants, Veterans, and Longer-term Unemployed
Other initiatives focus on immigrants, veterans, and people who have been out of the workforce for some time. By offering supports such as translators, part-time and flex-time schedule opportunities, and extra training, companies can attract non-traditional workers to fill labor shortages.
To accomplish this, many in the industry are working with new federal programs, such as the FAST Act, which assists military veterans into careers as commercial motor vehicle (CMV) drivers. There are also calls to pass the Professional Pell Education Learning (PROPEL) Act, which would extend Pell Grants to students of vocational and trade schools.
Final Thoughts
Solving these staffing shortages is a top priority for city managers. Leaving garbage to pile up in residential and commercial business areas is not just unsightly, it can be unsafe and is a significant quality-of-life issue for residents. With no real end in sight for labor shortages across industries and the country, waste management officials will likely be dealing with these challenges for years to come.
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