There has been massive public outcry over the announcement that Southland disAbility Enterprises (SDE) is set to lose its contract to to sort and process the region's recycling.

In a memo sent to staff and stakeholders yesterday, SDE chairman Stephen O'Connor and general manager Hamish McMurdo said they were breaking the confidentiality requirements of the tender terms to inform staff and stakeholders that they had been formally notified "that we have not been selected as the preferred proposer" for the Wastenet contract.

A meeting was also held at SDE's Invercargill facility to inform an emotional group of family and employees.

Mr McMurdo said SDE risked having themselves entirely removed from the tender process by breaking the confidentiality agreement but their "people deserve better than that" when it came to being told and having the right to fight to save their jobs.

"We’re working with vulnerable people here who take a long time to understand and compute things in their own minds and the truth of the matter is that if we only gave them four days that it was either yes or no then they couldn't do anything about it because it’s going to be all over in four days time which was really unfair to us." 

Mother of one of the employees Lynda Mooij said the announcement came as a "shock".

She said parents were extremely grateful that SDE had decided to break the confidentiality agreement to inform them as it allowed them to mount a public campaign to help save their children's jobs.

"You know these people that work there, this is their family. It’s their world....the ramifications of us not getting this contract are so huge...there’s such a small group of us that decided that we would take it upon ourselves because God only knows none of us are like professionals, we have just got a passion that we wanted to get this out there...I just say to everybody we’ve lost this battle but we haven’t lost the war. And we’re going to win the war. I’m telling you now."

She said breaking the news to her daughter Chantelle was emotional and that she was "absolutely gutted" at hearing her job may be lost.

Lynda Mooij and her daughter Chantell Gutsell at SDE's Invercargill facility. Mrs Mooij said she will fight as much as she can alongside other mothers of SDE employees to save their jobs. PHOTO: Ben Waterworth

Mrs Mooij and a group of parents were already planning on holding a march in protest of the decision, and had also re-posted a petition which which had received close to 14,000 signatures in support of SDE retaining the contract.

Invercargill Ratepayers Advocacy Group spokesman Nobby Clark, who attended the meeting on Wednesday, said he was outraged at the decision.

Mr Clark, who is running for council in October's elections, said the decision would become a massive election issue and was confident those who voted against SDE retaining the contract would "lose their positions come next election" and he would fight to ensure any vote would be made public and not held during a public excluded session in a council meeting.

"We've (ratepayers group) got about 30 issues in three years that we feel really passionate about...but nothing at all gets me as hot under the collar as this current one. The human cost that is there is just terrible. Absolutely terrible."

He said he too would be advocating for public rallies and other forms of protest to help gain support for SDE.

"There will be some rallies, there will be some people fronting up to some council meetings so that these people know exactly the feeling of anger that’s out there... for me if I get my say we’ll walk down the main street at peak traffic time and the bloody city can be grid locked and the police can do what they need to do. But we’ll make ourselves a presence known."

SDE employs a team of about 100, 80% of whom are people with a disability, and has a stated mission "to enrich the lives of people with disabilities by providing meaningful employment and personal development opportunities through operating a successful business".

It has held the WasteNet contract since 2010 which allows SDE to manage the recycling of all three Southland councils' (Gore, Invercargill and Southland) wheelie bin collections and recycling processing.

SDE employs close to 100 people,80% of whom are people with a disability. PHOTO: Ben Waterworth

SDE's current contract is set to expire on June 30 next year and in November last year WasteNet announced it would not renew its current contract and instead put it out to tender.

Invercargill MP Sarah Dowie said she felt devastated SDE's workers and family members.

“While I realise that the decision-makers have a duty to undertake due diligence on the tender of the WasteNet contract, at some point the social impacts of the decision need to be taken into consideration. SDE is a not for profit that gives people with disabilities meaningful employment but it’s also more than that. SDE is a place to make friends, it is a place that encourages camaraderie, it is a family."

Clutha-Southland MP Hamish Walker echoed Ms Dowie's concerns, saying Southlanders were very lucky to have SDE in the community.

“I have visited SDE and attended their annual awards and have family who have worked there for many years. SDE gives purpose for many of the workers employed there, which is so important for mental health... It would be very sad to see these wonderful employees lose their jobs.”

Another meeting will be held at SDE's facility in Invercargill next Wednesday with the public invited to attend to have their say.