The Fresno City Council approved the decision Thursday night.
Starting in December, private companies will pick up all solid waste from apartment complexes and businesses in Fresno.
The city plans to collect $2.5 million dollars from the two companies that will take over the solid waste pick-up.
However, workers say they're the ones who will be hurt by the change.
Under the plan, city trash collectors' jobs are guaranteed for at least one year.
A group of workers has already filed a lawsuit claiming the city illegally used the utility's money to fund research into privatization.