Recycling contractor sues for $5m amid allegations of worker exploitation

A Queensland container depot operator has launched a Federal Court claim for more than $5 million against Container Exchange (COEX), the government-appointed administrator of the state's Containers for Change scheme, alleging it was misled about contract terms.

U Can Recycle, which operates a cash refund point under Queensland's container recycling program, claims COEX acted unconscionably in threatening to terminate their agreement. However, COEX has levelled serious counter-allegations against the contractor, including claims of modern slavery-like conditions and visa violations.

Contentious allegations emerge from court proceedings

During Federal Court hearings, COEX disclosed allegations that U Can Recycle engaged in conduct raising significant workplace concerns. The programme administrator accused the depot operator of:

• Requiring employees to sleep on depot floors
• Miscounting container returns
• Employing workers operating outside visa requirements

In response to these claims, COEX has formally asked the court to consider whether U Can Recycle should continue operating under the scheme, effectively seeking the contractor's removal.

The allegations paint a troubling picture of labour practices within a government-backed recycling programme designed to benefit the broader community.

Contractual dispute centres on Beenleigh depot

U Can Recycle's lawsuit centres on claims the company was misled into believing it would operate a new depot facility in Beenleigh, south of Brisbane. The operator contends that COEX's conduct constituted unconscionable behaviour that breached the commercial relationship between the parties.

The dispute has escalated to the point where the Federal Court is now considering whether allegations of unconscionable conduct against COEX should be struck from the legal proceedings, a decision that could significantly shape the trajectory of the case.

Broader implications for Queensland's Container scheme

The dispute raises questions about oversight and accountability within Queensland's Containers for Change programme, which was designed to improve recycling rates and reduce landfill waste across the state. The scheme relies on private operators like U Can Recycle to manage collection points and process returned containers.

If the allegations against U Can Recycle are substantiated, the case may prompt a broader review of how COEX vets and monitors contractor compliance with workplace standards and legal obligations.

Legal proceedings continue

The Federal Court's consideration of whether to strike out the unconscionable conduct allegations represents a critical juncture in the dispute. The court's decision will determine which claims can proceed to trial and may influence settlement negotiations between the parties.

The outcome of this case will likely have implications for how similar disputes between government-appointed scheme administrators and private contractors are handled in Australia's waste management sector.

Originally reported by ABC News