City pays private bin firm to be on standby

City council chiefs confirmed that all private contractors – who have cost the council 5.4 million since being drafted last summer at the height of the trouble – will have been stood down by the end of this month.

But they admitted that they are in the process of arranging emergency cover, which would be used over busy periods of the year or if the action by bin men is stepped up.

The move comes as there appears to be no signs of the dispute being resolved. The work-to-rule and overtime ban by refuse staff has now lasted almost nine months but bin men are no closer to an agreement.

The council would not confirm the amount that will be spent on having an agreement in place for emergency cover but said it will be cheaper than having to call crews in at short notice.

Mark Turley, director of the council's services for communities department, said: "We are planning on the worst case scenario.

"Instead of relying on the short term, we are procuring long-term with a variety of contractors so that if we do have to use them – which I hope we do not – the cost will be far lower."

When asked whether that would result in an ongoing cost to the council, he said: "Yes. For refuse, a retainer will be necessary."

He also indicated that a resolution for refuse staff was not looking any more likely – although there is hope that street cleaners and other staff involved in the dispute may reach an agreement.

The council has invited bids for the service from private firms through its alternative business models project.

Doubts are growing about whether the dispute will ever be resolved – or whether a full privatisation will go ahead.

"Even the union find it very difficult to predict how their members will react," said Mr Turley.

"Let's not kid ourselves – we are trying to deal with an extremely difficult situation. I don't think there is an excuse for the situation lasting this long but I do have some sympathy as they are facing an extremely difficult situation."

He added: "The strategy with refuse is, in an ideal world, we will test the market when the service is in the best possible shape, then we will get the best prices."

The comments came at a meeting of the council's high-power policy and strategy committee.

Opposition councillors say that they provide a clear sign that council chiefs want to privatise the service.

Councillor Andrew Burns, leader of the Labour group on the council, said: "The whole discussion was fairly depressing. The dispute is moving towards its tenth month and there seems to be no real desire by the council to resolve it.

"You get the impression that it is just being left to drag on now because it will fall within the alternative business models process."