PEABODY — JRM Hauling and Recycling, Inc. (JRM) is being sold to trash and recycling giant Republic Services, Inc.
The news was announced in a letter from JRM President James R. Motzkin and his son, James S. Motzkin, to company employees.
“It is with mixed emotions that we are announcing to you today that we have signed an agreement to sell JRM Hauling and Recycling Services, Inc. and Greenworks, Inc. to Republic Services, Inc.” the Motzkins said in the letter, which was dated April 12 and posted on social media.
“We know there has been a lot of speculation over the past several months about the prospect of something like this happening so we wanted you to hear the news directly from us.”
Peabody Mayor Edward A. Bettencourt said the sale will require a period of transition.
“As mayor, my first priority is to make sure that Peabody residents continue to receive all the services they are accustomed and entitled to under the agreement we have in place (with JRM),” he said.
Financial terms have not been disclosed. The sale is expected to close “around mid-May,” pending regulatory approval and other conditions.
The letter states that JRM employees’ compensation and benefits will remain “substantially the same” for at least one year unless Republic’s union contract obligations dictate an earlier date and “that may be the case for some employees.” JRM is non-union.
Ward 5 Councilor David Gamache’s brother, Peter Gamache, and son, Randall Gamache, are longtime JRM employees, with Peter logging 32 years as general manager and Randall logging 16 as a driver. David Gamache said the City of Peabody was JRM’s first municipal account.
“And Peter might have been one of Jimmy’s (Motzkin) first hires,” said Gamache. “Jimmy started this as a family business and it’s stayed that way. Employees are treated well with good wages and benefits actually higher than union rates. I can only hope things stay the way they are when Republic comes in.
“I know Jimmy did his best to protect the employees for up to a year and I have to say that everything JRM has done for the city has been in the residents’ best interests. JRM was an asset to the city and extremely responsive to residents.”
Gamache speculated that drivers and laborers will likely be at most risk.
“They may be the ones to see change. JRM employees get good wages so they can enjoy a good living and their wages are probably better than Republic, so it will all depend on the final structure of the deal,” Gamache said.
In the letter, the Motzkins said they have been approached about selling the company before, but they didn’t become serious until “around the middle of this year.”
“Needing to think about our future and our families, the time had come to sincerely consider selling when we were yet again approached,” the Motzkins said, referring to the process as “long and difficult.”
The letter noted that not being able to publicly disclose the potential sale was “one of the most difficult things for us.”
According to its website, JRM provides trash disposal and recycling services for various municipalities and commercial and industrial customers in Massachusetts, New Hampshire, Connecticut, New York, Maine and Rhode Island.
The company, founded in 1995 in Gloucester by the Motzkin family, has an undeniable presence on Newbury Street. Every day thousands of vehicles pass by the signature calling card of the Greenworks MRF recycling center — a gigantic display of recyclables piled high, almost close enough to touch, no doubt causing many motorist heads to turn.
JRM launched GreenWorks MRF in 2015. It’s billed as a single-stream facility that can process up to 30 tons per hour, making it one of the largest of its kind in the area.
According to its website, Republic was named No. 33 on Barron’s 100 Most Sustainable Companies list for 2022, with 14 million customers in 47 states, 35,000 employees and revenues of $10.5 billion (2020). The company is headquartered in Phoenix, Ariz.
Gamache said he always enjoyed the connection he had with JRM when residents needed help solving their trash problems, which he said most often focused on missed pickups and damaged barrels.
“JRM and the Motzkin family will be missed. I haven’t really spoken to my brother yet, but I’m sure there will be changes,” Gamache said. “I fear that the bigger the business the harder it is to develop those personal relationships to problem solve. JRM always worked with residents to solve their problems and I hope that continues.”