Queensbury: When Eddy’s father faced unemployment due to the closure of the International Paper plant in Corinth 21 years ago, he decided to open a bottle and can redemption center to keep himself busy. Initially skeptical of his idea, Eddy saw potential in this business and continued running it even after her father’s passing, eventually turning MT Returnables into a successful venture. However, in recent years, she has encountered difficulties in sustaining her business as more redemption centers across New York have had to close down.
In New York, consumers pay a nickel deposit on every can or bottle they purchase and receive that amount back upon returning them to supermarkets, convenience stores, or redemption centers like Eddy’s. Unfortunately, redemption centers only receive 3.5 cents for each can or bottle they accept, sort, and send for recycling. This fee has not increased since 2008, and any change would require approval from the Legislature. Eddy reveals that she is barely keeping her business afloat and anticipates operating at a loss in the coming months. Many others have already faced this predicament, with more than 20 redemption centers shutting down statewide in the past year.
Jan Skelly, who closed down her South Glens Falls redemption center, Jan’s Cans, in April, attests to the challenges posed by the insufficient fee. The number of closures is concerning, as Eddy’s survey reveals that 52% of redemption centers in New York have shut down since 2008. Recognizing the urgent need for support, Saratoga County Democratic Assembly member Carrie Woerner is sponsoring legislation to address this issue, aligning herself with Eddy as a key advocate for change.
New York’s bottle bill, which has been in effect since 1982, has successfully contributed to recycling efforts by removing countless used bottles and cans from the waste stream. However, it has long been a topic of debate in the Legislature, with environmentalists advocating for an expansion that includes deposits on wine and liquor bottles and potentially increasing the deposit fee to 10 cents. These proposals have faced opposition from beverage bottlers and distributors who possess significant resources and lobbying power. Eddy recognizes that the lack of political organization among redemption centers has also undermined their ability to influence decision-making processes.
Redemption centers are crucial to any potential expansion of the bottle bill, as they would handle the increased volume of recycled bottles and cans. Supermarkets and convenience stores, currently obligated to accept returns, view redemption as more of a state requirement than a profitable endeavor. However, if more bottles and cans were included in the deposit and redemption system, these businesses would need time to adjust to the higher volume. Therefore, a collaboration has emerged between environmentalists, convenience store operators, and redemption center owners to address the fate of these centers.
Blair Horner, executive director at NYPIRG, highlights the issue of “benign neglect” faced by redemption centers, attributing it to the lack of modernization efforts within the recycling industry. Additionally, redemption centers are the most accessible option for people seeking to dispose of their bottles and cans. Unlike other businesses obligated to accept returns, redemption centers accept any brand, making them a convenient choice for consumers.
Redemption centers face significant labor costs, making it difficult for them to sustain their operations. The business model was feasible in 1982 when the minimum wage was substantially lower, but with upstate New York’s minimum wage currently at $14.20, the 3.5 cent fee per container is inadequate. Skelly, who employed four part-timers at her redemption center, paid them $16 per hour, and had hoped the business would contribute significantly to her retirement plan. Unfortunately, she was forced to close due to the lack of a handling fee increase.
Eddy, currently employing two individuals, admits to barely earning a salary herself in order to keep her redemption center operational. Some days, she has to choose between buying gas and milk, illustrating the financial strain she faces. Woerner remains hopeful that her bill, designed to increase the handling fee to 5 cents per container, will garner support in the next legislative session. The bill proposes to decrease the state’s share of unclaimed deposits from 80% to 47% to cover the fee increase for redemption centers. Advocates like Eddy find it peculiar that the state receives such a significant portion of unclaimed fees while redemption centers struggle to stay in business.
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