WasteExpo 2018: Passing it down

A large portion of waste companies are run by families who pass the responsibilities of owning and operating a company onto each generation. The panel discussion A Family Affair: Transitioning to the Next Generation at WasteExpo 2018 April 25 outlined what families can to do ensure a clean transition between generations.

Chris and Royal Coulter of Peoria Disposal Co., Peoria, Illinois, are the fourth and third generations, respectively, of the business. Royal, Chris’ father, has been in the industry for 53 years.

Royal has three sons, each in a separate part of the business. Chris works on the landfill, consulting and laboratory side. Chris said the family was lucky that each brother gravitated toward his own interests while figuring out how to be involved in the business.

To keep everyone on the same page, the Coulters hold lunch meetings once per month to discuss acquisitions or contracts and other monthly meetings with the human resources department and financial advisors. Royal said this helps everyone in the family stay up to date on current issues.

Royal said one incident helped him work through family problems that could arise when running a family business. A minority stakeholder attempted to work for Houston-based Waste Management after he was fired. This happened soon after Royal’s father died from a heart attack in the 1970s and changes in leadership had to occur, with his uncle taking over the business.

Brian Jongetjes is the president of John’s Disposal, Whitewater, Wisconsin. His son, Dan, is the general manager. Dan said the advantages of a family business are being able to celebrate successes together and to “have big dreams and goals we pursue.”

Brian said his father, who started the company, was more involved in the infrastructure side of the business, allowing Brian and his siblings to take on the business side. Brian said, once the time comes, he hopes to have the same ease to step aside.

“Having my family involved in the business was one of my dreams,” he said. “But it can quickly turn into a nightmare.”

Dan emphasized the importance of working from the bottom up as part of the crew rather than just going straight to the top. In the beginning, Dan took the “rough jobs,” such as cleaning garbage cans and the office. This allowed him, he said, to respect the work his employees put in while earning their respect.

Joe Garbarino of Marin Sanitary Service, San Rafael, California, expanded on Dan’s thoughts during the session. “I started at the very bottom of the can,” he said. “I was always a proud garbage man. You pass that on.”

The Garbarino family, Joe and his daughter Patty, emphasized the importance of passion and experience over family name. “Family goes beyond son, daughter, in-laws,” Joe said. “We’re all made of different blood and steel, that can make it difficult.”

Joe said it didn’t matter which family member, or even if it is a family member, is involved in the business, as long as the passion is there.

Patty, who is president and CEO of Marin and past-president of the California Reuse and Recycling Council, implemented the council’s Next Generation Course for family members who wanted to get involved and employees who wanted to move up in the company. The course talks about the history and evolution of solid waste, effective day-to-day operations, technology, human resource management, financing, risk management and safety and leadership. Patty said several hundred participants graduated from the program so far.

“You need to work hard and gain the respect of your employees the old-fashioned way,” she said.

The Garbarinos also partnered with a consultant who helped the family mature its management and acted as a third-party communicator among family members to “avoid a Thanksgiving dinner situation,” Patty said.

Brian said it’s difficult to step back and let the next generation take over, but it’s important to be able to listen to a successor and take him or her seriously. He said after he and his brother took over John’s, his dad wouldn’t adhere to instructions they gave him. “I want to make sure my kids tell me what to do,” he said.

WasteExpo 2018 is taking place April 23-26 at the Las Vegas Convention Center. It is organized by the National Waste and Recycling Association, Arlington Virginia, and information, event, commerce and education provider Waste 360.