The United Services Union (USU) has raised serious concerns over the proposed outsourcing of waste collection services at City of Newcastle, which will be considered under confidential business at Council’s Ordinary Meeting on 22 September 2026. The matter relates to the FOGO Collections Tender Report – Contract No. 2026/161T and could result in core Council services being transferred to private operators.
The USU is particularly concerned that a debate about the future of public services is occurring behind closed doors with little opportunity for public scrutiny or community discussion.
Luke Hutchinson, Acting Northern Industrial Officer of the USU, said residents had every right to question why such a significant decision was being considered confidentially.
“This is not simply a procurement exercise. It is a decision about whether City of Newcastle continues to directly provide an essential service or hands it over to a private operator. The community deserves to see that debate take place in public, not behind closed doors.”
“When Councils talk about privatising services, they often point to efficiencies and cost savings. What they rarely talk about is who ultimately pays the price. Too often it is workers, local communities and public accountability.”
The USU has maintained throughout the process that the introduction of Food Organics and Garden Organics (FOGO) collection, while required by the NSW Government, does not justify the privatisation of an existing Council service.
The USU argues that Newcastle already has an experienced and capable in-house workforce delivering waste collection services and that Council should be investing in its own employees rather than outsourcing jobs to private contractors.
The USU further questioned the broader public benefit of privatisation.
Mr Hutchinson said the proposal risked creating a “race to the bottom” in wages and conditions.
“We’ve seen this story play out across the country.”
“The Council should ask themselves a simple question: when has the privatisation of an essential public service genuinely delivered a better long-term outcome for the broader community?”
“Whether it’s telecommunications, electricity or other formerly public assets, communities too often lose accountability, lose local control and watch profits flow elsewhere. Public services become private profits.”
The USU is calling on Councillors to reject any proposal to privatise the collection service and instead invest in Council’s existing workforce to deliver FOGO collections in-house.
“FOGO may be mandated by the NSW Government, but privatisation is not. Council has a choice. It can invest in its own workforce and keep this service accountable to the community, or it can outsource it and accept the risks that come with privatisation. We believe Newcastle deserves better.”
Contact:
Luke Hutchinson – 0419 761 323
Acting Northern Industrial Officer
United Services Union
