Around twenty contractors have been axed from the company behind the controversial deposit return scheme, fuelling concerns about the future of the firm.
It is understood they were told today by Circularity Scotland their services are no longer required.
Scottish Labour Net Zero spokesperson Sarah Boyack said: “This is awful news for those who’ve lost their job and will add to the anxiety other staff are undoubtedly feeling.
“The only person who should lose their job because of this mess is Green Minister Lorna Slater.”
Scotland’s DRS, which attempts to boost recycling rates, is in disarray over a dispute between the Scottish and UK Governments.
Conservative ministers, who possess a veto on the Holyrood scheme, said it could only go ahead if glass was excluded.
This prompted the Scottish Government to delay the scheme until October 2025 at the earliest.
However, the delay has plunged Circularity Scotland, a not-for-profit company set up to ensure the smooth roll out of the scheme, into crisis.
As reported by the Record, staff were sent home on Thursday last week and they may not get paid this month.
An internal email revealed administration could be on the cards and all staff are at risk of redundancy.
We can now reveal that around 20 contractors have been notified their work with the company has ended.
Tory MSP Maurice Golden said: “The SNP/Green scheme has been a shambles from the start and questions need to be answered if there is any chance of a launch.
“This is one debacle followed by the next meanwhile livelihoods are under threat.
“A competent government and minister could have easily avoided this charade.”
The email on potential administration stated: “We have proposed a route to members which could allow Circularity Scotland Ltd to exist 'in hibernation' until the Scottish DRS launches in October 2025.
“If stakeholders agree to fund this proposal, all employees would be at risk of redundancy and a consultation period would begin. In this scenario, it is likely that the company would be able to pay June salaries, any outstanding holiday pay and pay in lieu of notice to those made redundant.”
The firm, which has 66 staff, added: “If stakeholders do not agree to fund this proposal, Circularity Scotland may go into administration. If the company becomes insolvent it may be unable to pay contractual monies due to employees - including June wages.”
The email said it anticipated the outcome of these talks would be known early next week. Circularity Scotland is funded by drinks producers.
Under the Holyrood scheme, shoppers would pay a 20p deposit every time they buy a drink in a can or bottle, with that money refunded to them when the empty containers are returned for recycling.
Lorna Slater, the Green Minister responsible for DRS, has been criticised for her performance in the job.
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