A spokesperson for the newly appointed contractor Suez Environment, formerly known as Sita, said that it was all systems go.

"The company has been working to ensure a seamless transition, included the purchasing of new trucks and recruiting drivers," the spokesperson said.

"All Solo [previous contractor] drivers were offered the opportunity to apply for positions in the new contract. For a variety of reasons, a number of the drivers decided not to apply.

"Of those that applied, two were offered employment ... and have recently declined the offer."

The spokesperson said that Suez had employed a supervisor, customer service officer, mechanic and drivers to service the Port Stephens region and that pay rates were in line with the information provided during the tender process and the Waste Management Award 2010.

Solo drivers Brett Hanley and Dale Chisholme, who have more than 40 years' experience driving waste trucks between them, said they refused lower pay.

"The wages for permanents under Solo was $22.97 an hour, the new contractor has cut that rate by $1.20, offering just $21.77 an hour," said Mr Hanley.

"It's an insult ... this is not just a driver's job but an operator's job. It's highly skilled work requiring plenty of training and safety issues."

Cr Geoff Dingle said it was disappointing that the new contractor had not been prepared to negotiate with the workers.

"Most of these Solo employees will find it very hard to find alternative employment in the current economic environment," Cr Dingle said.