Waste Management Inc.

Waste Management Inc. dreams of privatizing every city waste collection and landfill service in the world. It would mean a huge increase in revenues and profits - the name of the game. The 1998 Annual Report (the first since the merger) lays out the routs to external growth as acquisitions and privatization. Look at what they write:

"Benefiting from the privatization of solid waste services provided by municipalities."

"Municipalties currently provide a large percentage of the solid waste management services. Due to the capital and regulatory requirement demands, as well as the economies of the solid waste industry, certain portions of these services have been privatized each year. The Company pursues privatization opportunities where it believes solid waste services can be provided at a profitable level." (Form 10-K, p.2)

More revealing of this goal was the 1994 corporation annual report titled, "Environmental Services for a Global Market." Inside the report WMI beautifully provided full-page photographs of six "experts" on the world environment (Kathryn S. Fuller, Pres. of World Wildlife Fund; William Reilly, former head of the Environmental Protection Agency; Bhaskar Vira of England's Oxford Centre for the Environment, Ethics and Society.

The other three experts write their full pages on world privatization and "democracy." They include Donna Kristaponis, Houston's Director of Planning; David Osborne, Co-Author of Reinventing Government; and Charlotte's Director of Solid Waste Services, Wayman Pearson.

Osborne talks about privatization some but Pearson strikes out for privatization of all solid waste services, the place where WMI's self interest lies.

We present Pearson's statement in full with the assumption that WMI fully endorses it. Note his subtle appeal to taxpayer rebellion as a taxpayer. Then he claims that private companies like WMI have the best technology and equipment. In fact, Pearson should turn his criticism at WMI for all its old, old trucks it has failed to replace over the years in order to show high profits and cook its books.

Pearson continues by talking about competition in the private sector in an industry that is now almost monopolistic and without any vigorous competition. Finally, he states brashly that "the majority of all solid waste collection in municipalities across the country will be provided by the private sector" by 2005! Oh, WMI likes the sound of that! Any community and its government officials should look carefully at the horrible record of corruption, pollution, and racism of WMI before going the privatization route! Here is Pearson's statement in full.

The call of the citizenry for change on the eve of the 21st Century has an insistent rhythm: More bang for the buck.., more bang for the buck... Americans are demanding cost-effective services, particularly those services funded with taxpayer money, l'm a taxpayer, too. It's the right thing to ask for, and in an era of dwindling dollars and the political! pendulum swinging toward less government, it's the only way to go.

We deserve the most efficient service for the lowest possible cost. That's a formula for steady and continual improvement in the delivery system and disposal and treatment of solid waste. And while some cities have municipal waste services that are competitive, the immediate future appears to belong to the private sector. Each municipality ought to undertake a critical analysis of every component of its solid waste collection and disposal. Each city should examine whether its current delivery system is competitive and then carefully consider when to introduce new technology and equipment. Unless a municipality is on the leading-edge in technology, quality of service and in personnel training, it will not be competitive. Period. And if it is not competitive, taxpayers will demand outsourcing for those services.

Over the next decade, it seems clear that the majority of all solid waste collection in municipalities across the country will be provided by the private sector. The shift follows the same public-to-private pattern we've seen in the past 10 years in the shift of responsibility for landfill operations. Private sector firms must offer a level of service that customers are willing to pay for, or they go out of business. They also are flexible enough to challenge the traditional user-fee approach. I project that we will see more and more the introduction of a tiered or variable rate system that takes into account the different volume of solid waste generated, for example, by a household of two people compared to a family of six or eight.

The next 10 years also will see a major change in product packaging. Although Americans have embraced recycling, and recycling markets are generally improving, we still generate more waste than any other country in the world. We will have to emulate the Europeans, who have made important inroads with their manufacturers. They are taking back from customers the packaging in which they ship their products and re-using or recycling that material.

These are exciting, unpredictable times. Some municipalities are well prepared to face the uncertain, always-changing future. The city manager in our community, Charlotte, North Carolina, is a change merchant. We know that we must adapt to the circumstances about us or we will be irrelevant. Change is considered a wholesome civic value in our city. I believe it's the only way to stay in business. It's the only way to do business.

WAYMAN PEARSON DIRECTOR, OF SOLID WASTE SERVICES CI'TY OF CHARLOTTE, NORTH CAROLINA

1994 WMX Annual Report, Page 13

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