Chapter 4

DEPOSITS CREATE JOBS !

At least 3000 new jobs will be created by the introduction of Container Deposit Legislation in New South Wales.

The job creation potential of CDL contrasts with the job losses over the past 20 years caused by the shift from refillable to one-trip containers. Despite a 51.7% increase in production from 1974 to 1989, employment in the NSW beverage industry fell a staggering 53.7%, from over 3500 to around 1600 jobs (see Graph 1). Less than half the number of people employed in the industry in 1974 still had their jobs in 1989 [7].

This dramatic fall in employment was mainly the result of small soft drink companies being forced out of business. Because one-way packaging fosters centralisation of bottlers and breweries and because the smaller companies could not afford the one-way containers or the new high-speed equipment used for filling them, between 1974 and 1989 the number of soft drink companies in NSW fell by 80% from 135 to just 27 [7] as shown in Graph 2.

CDL on the other hand encourages decentralisation as a consequence of the greater use of refillables. CDL acts to promote smaller bottlers, encourages new businesses to enter the market and fosters a greater level of competition.

Wherever deposit legislation has been introduced, a net increase in employment results. Jobs are typically created in handling and sorting beverage containers at retail outlets and collection depots, transporting refillable bottles and recyclable materials, and washing and refilling bottles by drink manufacturers.

The following examples indicate the positive relationship between deposits and employment for states where CDL has been introduced [10, pp.238-241]:

  1. Vermont - with a population of 450,000, an increase of 350 jobs resulted. No job losses were reported.
  2. Maine - with a population of 1.08 million (1979) an estimated 626 jobs were created with distributors reporting an increase in jobs in warehousing and distribution of between 10% and 40%. No job losses were reported.
  3. Oregon - with a population of 2.1 million, the Oregon Government reported the creation of 576 jobs in warehousing and handling and 140 jobs in transportation. 350 jobs were cited as lost, however, peculiarities in the legislation's timing could have been to blame.
  4. Connecticut - with a population of 3 million, 700 jobs were created.
  5. Michigan - with a population of 9.2 million (1979) 4888 jobs were created. While 240 job losses were claimed they could not clearly be attributed to deposits.
  6. South Australia - with a population of around 1.3 million, a 1983 survey indicated that 319 full-time and 381 permanent part-time jobs were created.

Graph 3 illustrates that the introduction of deposits on beverage containers in NSW, with a population of 5.9 million, will result in the creation of around 3000 jobs. The fact that NSW is now more entrenched in one-way containers than these states were at the time they introduced CDL suggests an even higher figure could be expected while extension of the system to cover other containers in the waste stream would create still more employment.

To stimulate employment in a recessed economy it is important to preserve and build upon processes in industry that are both labour-intensive and economically viable. The introduction of CDL is a good example of how a return to more labour-intensive processes will help reduce unemployment while delivering products to the community just as productively and inexpensively as the mechanised processes which have more recently replaced them.

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