July 16 (Bloomberg) -- Waste Management Inc., North America’s largest trash hauler, said sales of a new waste- removal product have jumped 25 percent in Toronto because of a three-week garbage strike in Canada’s largest city.

Sales of the Rhinobag, a reinforced polypropylene sack available at retailers in the Toronto area, began to rise when the municipal strike started, Wes Muir, a spokesman for Houston- based Waste Management, said in a telephone interview yesterday.

Rhinobags, which sell for C$44.99 ($40.40), can hold the equivalent of 30 to 40 bags of household waste, and customers pay Waste Management C$159 to haul them away. The company will rename Rhinobag this year to give the product a Waste Management brand identity, Muir said.

“We’ve developed this service that we knew people were interested in, and coincidentally the strike comes along and it’s a good opportunity for residents to get together, buy the bag and fill it,” Muir said. “We saw a spike in the amount of bags” sold in Toronto since the strike started.

Waste Management bought Rhinobag in April and U.S.-based Bagster last month to diversify revenues that have relied mostly on municipal solid-waste contracts, commercial-waste removal and construction debris roll-off. The company also is expanding its waste-to-energy operations.

Muir declined to say how much Waste Management paid for Rhinobag and Bagster.

Toronto Strike

Republic Services Inc., Waste Management’s largest rival, isn’t benefiting from the Toronto strike, Peg Mulloy, a company spokeswoman, said in a telephone interview. Phoenix-based Republic has a contract with Toronto to haul trash collected by municipal workers to a landfill, and “since they’re not picking up trash, we’re not hauling,” Mulloy said.

Two Toronto union groups representing about 26,200 workers, including garbage collectors and office staff, went on strike June 22 to protest proposed cuts in benefits and sick pay. Toronto residents have been taking garbage to 19 temporary sites in parks and hockey arena parking lots during the labor action.

Toronto Mayor David Miller and the unionized workers are still in talks.

Waste Management fell 1 cent to $27.70 at 10:17 a.m. in New York Stock Exchange composite trading. Republic declined 22 cents to $25.46.

To contact the reporter on this story: Rob Delaney in Toronto at robdelaney@bloomberg.net.

Last Updated: July 16, 2009 10:19 EDT