Waste Diversion Ontario (WDO) says it continues to have concerns over Stewardship Ontario (SO) pursuing a management agreement with the Canadian Stewardship Services Alliance Inc. (CSSA), a move WDO says violates existing program agreements.
On April 8, 2014, WDO informed SO that that it’s moving forward with a dispute resolution process because SO has pursued the CSSA agreement without consent. The dispute resolution option is available through the Blue Box and Municipal Hazardous or Special Waste (MHSW) Program Agreements, and WDO is proposing to SO that the dispute resolution process be accelerated so issues can be resolved through arbitration if necessary.
In response, SO responded with a statement on its website, noting that is has been in negotiations with CSSA over the past year “to provide program administration services to SO that capitalize on a national administrative framework for stewards in order to deliver significant cost savings.”
On April 9, 2014, WDO CEO Michael Scott wrote to SO about the reason it has taken steps towards dispute resolution: “It is Waste Diversion Ontario's position that Stewardship Ontario has entered into a subcontract without the prior consent of Waste Diversion Ontario, contrary to the Program Agreements between Stewardship Ontario and Waste Diversion Ontario. Specifically, in July, 2013 Stewardship Ontario executed a Management Services Agreement with Canadian Stewardship Services Alliance Inc. without either informing WDO of this agreement, or seeking prior consent.”
SO further responded with the following statement: “WDO is seeking direct contractual access to information from CSSA as a service provider to Stewardship Ontario. We believe this is unnecessary because SO is required to and does provide WDO with all the information it requires in order to exercise sufficient oversight. We are concerned that this could require that all service providers to all Industry Funding Organizations (IFOs) have a direct contractual relationship with WDO. This would set an unnecessary and concerning precedent.”
In addition, WDO has also informed SO that it will be initiating a program cost review of the Blue Box and the MHSW programs to gain a better understanding of SO’s administrative costs to administer these programs.
Full SO statement
Full WDO statements