WAKEFIELD — The town has put trash company Republic Services on notice for non-performance of its contract, caused by a bargaining dispute with Teamsters Local 25. That disagreement led to a workers’ strike on July 1, and in its wake has been irregular collection of refuse and recycling by Republic, with the slack picked up by the Wakefield Public Works Department.
Town Counsel Thomas A. Mullen sent a formal notice of non-performance and demand for remedy on behalf of the town on Friday. Also on Friday, Interim Town Administrator Kevin Gill was one of 13 officials from communities served by Republic to sign a letter urging Republic to reach agreement with its employees.
Mullen writes, “This letter constitutes (a) notice to you under the Agreement concerning serious, continuing non-performance by the Contractor since July 1, 2025, and (b) a demand for the immediate resumption of service and remedial action to make the Town whole for damages it has suffered and continues to suffer. Specifically, since Tuesday, July 1, 2025, the Contractor has wholly failed and refused to collect recyclables within Wakefield. It has also failed (and sometimes refused) to collect refuse at all in certain locations, and failed to collect it on schedule in others. These failures constitute a breach of the Agreement, which provides:
“ ‘The Contractor agrees that if at any time during the term of this contract the Director of Public Works determines that the Contractor is negligently or incompetently performing the work, or any part there[of], is unable to the satisfaction of the Director of Public Works to perform the same, … or is otherwise failing to perform this contract in accordance with all of its terms and provisions, the Director of Public Works may, at his election at any time thereafter, terminate this contract by giving written notice thereof to the Contractor specifying the effective date of such notice of termination, [and] upon the date so specified this contract shall terminate, but such termination shall not prejudice or waive any rights of action which the Town may have against the Contractor because of any default or failure in performance of this contract up to the date of such termination, and the Contractor shall be liable to the Town for any amount which it may be required to pay for labor and equipment … during the remainder of the period covered by this contract over and above the amount that would have been paid to the Contractor for the performance of the work during said period.’ ”
According to Mullen, “Wakefield’s Director of Public Works, Mr. Joseph Conway, has determined that since July 1, 2025, the Contractor has failed to perform the scope of work set forth in the Agreement. He is not, at this time, exercising his right to terminate the Agreement, but reserves that and all other rights under the Agreement, at law, in equity and otherwise.
“The Town intends to apply the liquidated damages provision of the Agreement. It also reserves its right to seek other remedies as well, including termination, a suit for damages and the application of the performance bond required by Article 3 of the Agreement. The Town’s damages, which have been accruing since July 1, 2025 and continue to grow, include the cost of renting trucks and other equipment to collect and transport refuse and recyclables, paying Town employees and independent contractors to fill in for the Contractor, and the cost of overtime which your non-performance has precipitated. Please note that the Agreement calls for payment by the Contractor of liquidated damages of $2,500 per day if “the contractor fails to report for daily collection services,” and provides that all such damages ‘may be deducted by the Town from Contractor’s payment.’ Agreement, Article 13(R). It is premature to do the math, but it is clear that the liquidated damages which the Town is entitled to withhold from its payments to the Contractor and pursue through legal action have already achieved a substantial level. Further, resort to liquidated damages does not preclude the Town from seeking other, additional remedies for its losses. ‘In addition to all of its other rights and remedies under the Contract, at law or in equity, the Town shall be entitled to assess liquidated damages.’ Agreement, Article 12 (emphasis added).
“If, as I understand, a pending labor dispute has affected your ability to meet your obligations under the Agreement, I must point out that the same cannot constitute an excuse for non-performance. The Agreement permits the Contractor ‘additional time wherein to perform and complete this contract as the Director of Public Works shall certify in writing to be just’ if delays ‘are caused by acts of God, acts of Government or State, extra work or other contingencies clearly beyond the control or responsibility of the Contractor.’ Agreement, Article 5. It is by no means clear that any disagreement between you and your laborers is ‘beyond [your] control or responsibility,’ and Mr. Conway is not prepared at this time to so certify. Moreover, separate language in the Agreement specifically addresses “delays … caused by a strike of the Contractor’s employees,” and it requires you to “diligently and in good faith take all action necessary in order … to resume operations”, without excusing your nonperformance if such action proves inadequate. (Emphasis added.)
“My client has been generally pleased with the Contractor’s performance under the Agreement until this month. It would be the Town’s strong preference to avoid having to terminate the Agreement. It is important, however, that you understand that (a) the Town has suffered and continues to suffer substantial damages as a result of the Contractor’s non-performance; (b) it will commence withholding liquidated damages and other costs so incurred from amounts otherwise due the Contractor, starting with the next scheduled payment; and (c) it reserves all other rights and remedies,” Mullen’s letter to Republic continues.
Interim Town Administrator Kevin Gill and the municipal leaders of Gloucester, Danvers, Beverly, Canton, Ipswich, Lynnfield Malden, Manchester-by-the-Sea, North Reading, Peabody, Swampscott and Watertown stated in a July 11 letter that they were “growing more concerned by the day with the lack of resolution and the compounding consequences of this service interruption.”“The most effective and lasting solution to this crisis is a settled agreement,” Gill and the 12 other municipal officials stated. “We continue to respect the collective bargaining process, but urge both parties to return to the table with urgency and in good faith. Each day without resolution adds strain to our residents, our businesses and our municipal operations and heightens the risk of broader public health impacts. While a long-term solution must come through a negotiated agreement, immediate action is also needed to address the ongoing service disruption. The current level of driver coverage and substitute crews is simply not meeting the basic needs of our communities. We urge Republic Services to act swiftly to expand interim staffing by bringing in additional drivers and resources to stabilize service in the short-term.”
In addition to having Republic Services’ expand the number of replacement workers, Gill and the 12 municipal officials are requesting the company to provide “consistent and reliable communication.”
“We understand this is a complex situation; however, since the work stoppage began, we have received limited and occasionally irregular updates,” stated Gill and the 12 municipal officials. “This has left communities to navigate shifting schedules and rising resident concerns with little to no guidance. A more coordinated, transparent communication strategy — including clear timetables and expectation of service — is essential to effective planning and public trust. In the absence of clear information and reliable service, the broader consequences of this disruption continue to grow.”
Gill and the 12 other municipal officials stated that, “The financial burden on municipalities is mounting as we deploy emergency responses, address overflow issues and fill service gaps resulting from the inadequate staffing and resources from Republic Services.”
“At the same time, environmental conditions are deteriorating, with uncollected trash affecting neighborhoods, parks and waterways,” Gill and the 12 municipal officials stated. “Public health concerns are escalating, particularly as restaurants struggle without a viable waste solution during the peak of their busy season. These impacts are substantial and must be acknowledged and addressed as part of any near-term response and future planning.”
Gill and the 12 municipal officials noted that their “communities are already bearing the cost of this disruption, both in personnel and material resources, as we work to mitigate the impacts of the service interruption and delay in full service resumption.”
“It is entirely reasonable — and necessary — for municipalities to take steps to secure alternative services that protect public health and maintain basic standards of cleanliness and safety,” Gill and the 12 municipal officials stated. “Equally, it is reasonable and equitable to track and assess these costs, including labor and emergency response efforts, to determine the full extent of the financial burden. We fully intend to seek appropriate compensation for the consequential damages and expenses incurred as a direct result of Republic Services’ failure to meet its obligations. Each of these issues compounds the frustration and confusion residents are experiencing and undermines the trust we have built with our communities.”
The 13 officials requested that Republic Services “provide accurate and updated timelines and service expectations” to each municipality. The officials also requested that Republic Services “expand driver resources and logistical support to guarantee the daily completion of all trash and recycling routes in our communities until the work stoppage is resolved.”
“Our priority remains protecting public health, upholding basic services and restoring stability,” Gill and the 12 municipal officials stated. “We hope Republic Services shares that commitment and is prepared to take more decisive action in the days ahead.”