Republic Agrees to Pay $11 Million to Chicago

Republic Services Inc. has agreed to pay the city of Chicago $11 million and make other compensation for a shortfall in minority and women-owned hauler contracting.

The shortfall occurred with Republic subsidiary Allied Waste Transportation Inc. Republic learned of shortfall in 2008, shortly after it bought Allied Waste Services, according to Will Flower, Republic senior vice president of communications, in a statement.

Besides the $11 million, Republic agreed to convert 79 positions at its Chicago transfer and materials recovery facilities from temporary roles with vendors to full-time company positions. Republic also released any claims that the company might have due to alleged shortfalls in the amount of waste delivered by the city under one of the contracts.

Republic said some of the work that was supposed to meet the city’s minority business enterprise (MBE) and women business enterprise (WBE) actually went to non-M/WBE companies.

Republic said because of its response the city determined that the company can continue to perform its existing contracts.

Chicago city officials did not immediately respond to a request for comment.