We had a silimlar thing happen in my city. New company comes in with rock bottom contract bid. City does not look passed the dollar amount signs them up. New compamny cancel current contracts. Have all drivers re-apply for a 1/4 of pay they had before. Most leave to neighboring communities with competitive pay packages. You have to have CDL class A (basically 18 wheeler) so these guys are in high demand. City dealt with these jokers for about a year, 2 weeks or more of missed pu's total routes left uncovered etc... Put it back out to bid and ended selecting Republic paying 30% more than the intial contract they started the whole mess with.