The current contract between Southland disAbility Enterprises (SDE) and Wastenet allows SDE to manage the recycling of all three Southland councils' (Gore, Invercargill and Southland) wheelie bin collections.
With the contract set to expire on June 30 next year, Wastenet has announced it will not renew the current contract and instead put it out to tender.
Wastenet spokesman and Southland Mayor Gary Tong said the decision to put the contract up to tender was due to negotiations ''not resulting in an agreement for both parties''.
He acknowledged the service SDE has provided over the past eight years.
SDE has held the contract since 201. General manager Hamish McMurdo said losing the contract would be devastating for its employees.
''It means everything to them because without this place, I would have to guess that most of our people would never find another place to work. If you talk to any of our people they talk about this place giving them meaning, a reason to get up in the morning, a purpose in life and a contribution to the community.''
SDE chairman Stephen O'Connor said they were disappointed by not having the contract renewed but would apply through the tender process.
''Obviously, we're able to bid in that process, as is anybody else who may be interested.''
The decision to put the contract out to tender was announced last week.
Employees were notified during a meeting on Monday.
SDE employs about 100 staff, 80% of whom are people with a disability.
Mother of one of the employees, Lynda Mooij, said working with SDE made her daughter feel ''part of a family.''
She would fight hard to help her daughter and fellow employees retain their jobs.
The tender process will begin before Christmas and run through to mid-February.
