Queensland Container Exchange Operator Closes 21 Depots Amid Modern Slavery Allegations

Container Exchange (COEX) says the organisation has "serious concerns" about safety and compliance at U Can Recycle Depots.

U Can Recycle, which ran 21 depots, is in a legal dispute with COEX over its contract.

What's next?

COEX says it is looking for alternative operators in those areas.

Queensland's container exchange operator has shut down 21 depots run by a company accused of work conditions likened to modern slavery.

Container Exchange (COEX), which runs the Containers for Change scheme around the state, directed all refund points operated by U Can Recycle to close on Tuesday morning, effective immediately.

The operator is embroiled in a multi-million-dollar contractual dispute in the federal court with COEX, claiming it was misled into believing it would be operating a new depot site in Beenleigh in December 2024 and that COEX had acted unconscionably in threatening to end the parties' contract.

In court documents, COEX alleged U Can Recycle employees were paying refunds without completing counting, dogs roamed freely with faeces and urine evident, and staff were working outside of their visa requirements.

COEX lawyers told the court during a strike-out application in May that students on visas were sleeping on mattresses on floors in conditions they likened to modern slavery.

U Can Recycle previously told the ABC the claims made by COEX were "exaggerated and unfair".

On June 8 Registrar Peter Schmidt ordered U Can Recycle's statement of claim, where it alleged site visits by COEX employees were "aggressive in nature", be struck out in its entirety.

'Serious safety concerns'

A COEX spokesperson said the decision to shut refund points followed "an extensive investigation that identified serious safety and compliance concerns".

"COEX is committed to ensuring all refund points operate safely, fairly and in full compliance with scheme requirements," they said.

"The safety of our workers and our customers is our top priority. We recognise this decision will impact customers, charities, community groups and local businesses.

"We appreciate your understanding and patience as we take this necessary step to protect the integrity of the scheme."

U Can Recycle ran refund depots, bag drops and pop-up sites in Brisbane and the Fraser Coast, including the only Containers for Change site in Maryborough.

"We are working quickly to restore safe, convenient and high-quality services in the area through alternative operators," a COEX spokesperson said.

U Can Recycle has been contacted for comment.