sno man
Senior Member
Ha! The Globe:
I know I couldn't make up a story this outlandish.
The firm significantly under-bid larger rivals like The Miller Group and Waste Management Canada to win the contract, a tactic that has attracted much attention. “You wonder how much money they can make off it,†said Mr. Gibson. “Obviously, the guy who won [the contract]has significantly lower operating costs or a lower profit margin.â€
GFI has a history of low-balling the first contract to get in with a given municipality. They bought Turtle Island to take over the contracts that they held, and cut staff and trucks to pad the profits. When everyone got used to the slightly lower service, they cut more staff and trucks. Around the time of the ice storm, they were so close to the bone in northern York Region that when a couple of trucks wouldn't start a couple of days they ended up 3 WEEKS behind before catching up. Look for a significant jump in the second contract, unless they are still gunning for the rest of Toronto, then look for service levels to drop. Olivia is right to be cautious, by looking around outside of Toronto to see what was going on.