Redundancies are already starting to bite for Central Otago WasteBusters.
Nearly 20 full-time jobs going in the wake of the group losing its contract for recycling services in the district.
In November, the Central Otago District Council signalled WasteBusters, which was on the brink of insolvency, had lost the recycling contract.
The council discussed the new contract behind closed doors.
It recently announced AllWaste had won the contract for the new kerbside recycling service, which begins at the end of May.
AllWaste also won the contract for the fortnightly refuse collection, which began in July last year.
WasteBusters general manager Glenys Byrne said the group had already started redundancy processes for eight full-time staff and would look at shedding seven more roles in June with more to follow.
''It will be a sad day for Alexandra with the redundancies of nearly 20 full-time staff and will put pressure on all sorts of social services.
''I think the ramifications of this will flow on to the whole Alexandra district and I hope employers and others in the community will rally and support them if they can.''
Some of the staff had been working at WasteBusters for a decade and finding new jobs would be a real struggle, she said.
WasteBusters was grateful the council had allowed it continued use of its Boundary Rd site at a peppercorn rental and the use of the recycling shop and equipment and infrastructure so it could continue as a commercial enterprise.
She hoped the organisation would survive, maybe in a different format, but with similar values, ethics and goals. WasteBusters could not afford a general manager, so Ms Byrne had resigned and was seeking employment overseas.
The community could continue to support WasteBusters by giving to or buying from its resource shop, using the drop-off zone and paying, if it was a commercial business, or by signing up for weekly or fortnightly commercial collection of recyclable material.
Queenstown Central Otago AllWaste manager Mark McKone said one extra staff member was needed as a result of the firm winning the contract.
He declined to make any further comment, saying the firm was a council contractor, so it was up to the council to comment.
The new service will result in each home or business in the district refuse collection area having three wheelie bins - one for rubbish and two for recycling (one for glass and the second for other recyclables).
Delivery of the bins began this week and would be completed within three weeks, council infrastructure services manager Jon Kingsford said.
''The new service will cost the same as what we are currently paying WasteBusters.
It is designed to be more efficient, more equitable and provide capacity to deal with fluctuations in volume of recyclable material,'' Mr Kingsford said.
The council was working with WasteBusters to try to identify options for that group to continue to operate.
Edin Smith (22) finishes up as a recycle operator at WasteBusters on Friday and is one of the first redundancies.
He said finding another job would not be easy but he hoped the skills he gained working at the recycling facility would be an asset.
