Recycling Depots Remain Open Amid Legal Battle and Safety Concerns

Queensland's container exchange scheme has halted the closure of depots operated by U Can Recycle, a recycling contractor involved in a significant legal dispute with the state-appointed program operator, Container Exchange (COEX). U Can Recycle was initially ordered in June to shut down its 21 refund points across Brisbane and Wide Bay due to alleged "serious safety and compliance concerns."

The two businesses are engaged in separate contractual disputes in the Federal Court. U Can Recycle asserts it was misled into believing it would operate a new depot site in Beenleigh in December 2024 and claims COEX acted unconscionably by threatening to terminate their contract. Conversely, COEX has presented accusations in an affidavit filed in the Federal Court, including images and accounts suggesting conditions at U Can Recycle's depots were akin to modern slavery. These allegations include individuals working beyond their visa limitations and sleeping on mattresses on the depot floors.

U Can Recycle has previously refuted COEX's claims, describing them as "exaggerated and unfair." In a separate matter, COEX itself was referred by the Health, Environment and Innovation Committee last year to the Crime and Corruption Commission (CCC) concerning 10 allegations.

U Can Recycle managed to avoid immediate closure after the Supreme Court in Brisbane granted an interim injunction. Lawyers for U Can Recycle argued in court last week that all alleged breaches had been rectified and were not severe enough to warrant terminating the multi-million-dollar contract, which would have substantial consequences for the operator and its employees. The court heard that a complaint from a former employee, now referred to the Fair Work Ombudsman, alleged staff worked hours exceeding their visa restrictions. U Can Recycle's solicitor noted that many employees are foreign nationals on various visa types, with student visas having hour limits while others do not. He stated that Fair Work has taken no action against his client, and no breach of any Immigration Act has been alleged. Furthermore, changes have been implemented to ensure the operator's caretaker no longer sleeps on the premises, drives a forklift with an expired license, or smokes on site. U Can Recycle has also improved its customer personal information storage practices. The court was informed that other "historical breaches that were of some significance" have also been rectified. U Can Recycle has volunteered for monthly audits and highlighted its compliance rates of over 95 percent and 98 percent in recent checks.

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Exaggerated and unfair.