FORM 4
[ X ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).         
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
                                                                                  
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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

HATHAWAY PETER S
2. Issuer Name and Ticker or Trading Symbol

ALLIED WASTE INDUSTRIES INC [ AW ]
5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director                      _____ 10% Owner
__ X __ Officer (give title below)      __ X __ Other (specify below)
Executive Vice President / Chief Financial Officer
(Last)          (First)          (Middle)

18500 NORTH ALLIED WAY
3. Date of Earliest Transaction (MM/DD/YYYY)

12/5/2008
(Street)

PHOENIX, AZ 85054
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common Stock, $.01 par value   12/5/2008     M    72855   A (1) $0.00   249563   D    
Common Stock, $.01 par value   12/5/2008     M    24285   A (1) $0.00   273848   D    
Common Stock, $.01 par value   12/5/2008     M    12000   A (1) $0.00   285848   D    
Common Stock, $.01 par value   12/5/2008     M    5400   A (1) $0.00   291248   D    
Common Stock, $.01 par value   12/5/2008     M    13333   A (1) $0.00   304581   D    
Common Stock, $.01 par value   12/5/2008     M    6667   A (1) $0.00   311248   D    
Common Stock, $.01 par value   12/5/2008     F (2)    59674   (2) D $10.10   251574   D    
Common Stock, $.01 par value   12/5/2008     D (3)    251574   D   (3) 0   D    

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee stock option (right to buy)   $21.0625   12/5/2008     (4)       125000    12/29/2002   12/29/2008   Common Stock   125000     (4) 0   D    
Employee stock option (right to buy)   $13.3125   12/5/2008     (5)       150000    7/30/2003   4/6/2009   Common Stock   150000     (5) 0   D    
Employee stock option (right to buy)   $10.32   12/5/2008     (6)       60000    12/11/2005   12/11/2012   Common Stock   60000     (6) 0   D    
Employee stock option (right to buy)   $9.03   12/5/2008     (7)       100000    5/22/2006   5/22/2013   Common Stock   100000     (7) 0   D    
Employee stock option (right to buy)   $8.74   12/5/2008     (8)       63000    12/5/2008   (9) 12/30/2015   Common Stock   63000     (8) 0   D    
Employee stock option (right to buy)   $12.91   12/5/2008     (10)       83300    12/5/2008   (11) 12/5/2016   Common Stock   83300     (10) 0   D    
Employee stock option (right to buy)   $11.48   12/5/2008     (12)       100000    12/5/2008   (13) 12/11/2017   Common Stock   100000     (12) 0   D    
Restricted Stock Units     (14) 12/5/2008           72855    12/5/2008   (15) 12/5/2008   Common Stock   72855   $0.00   0   D    
Restricted Stock Units     (14) 12/5/2008           24285    12/5/2008   (16) 12/5/2008   Common Stock   24285   $0.00   0   D    
Restricted Stock Units     (14) 12/5/2008           12000    12/5/2008   (17) 12/5/2008   Common Stock   12000   $0.00   0   D    
Restricted Stock Units     (14) 12/5/2008           5400    12/5/2008   (18) 12/5/2008   Common Stock   5400   $0.00   0   D    
Restricted Stock Units     (14) 12/5/2008           13333    12/5/2008   (19) 12/5/2008   Common Stock   13333   $0.00   0   D    
Restricted Stock Units     (14) 12/5/2008           6667    12/5/2008   (20) 12/5/2008   Common Stock   6667   $0.00   0   D    

Explanation of Responses:
( 1)  Shares issued upon the vesting of restricted stock units.
( 2)  Common stock delivered as payment for tax liability incurred upon the vesting of restricted stock units.
( 3)  Disposed of pursuant to merger agreement with Republic Services, Inc. at an exchange ratio of .45 shares of Republic Services, Inc. common stock, having a fair market value of $22.60 per share at the effective time of the merger, for each share of Allied Waste Industries, Inc. common stock.
( 4)  Converted into an option to purchase 56,250 shares of Republic Services, Inc. common stock at an exercise price of $46.81 per share.
( 5)  Converted into an option to purchase 67,500 shares of Republic Services, Inc. common stock at an exercise price of $29.58 per share.
( 6)  Converted into an option to purchase 27,000 shares of Republic Services, Inc. common stock at an exercise price of $22.93 per share.
( 7)  Converted into an option to purchase 45,000 shares of Republic Services, Inc. common stock at an exercise price of $20.07 per share.
( 8)  Converted into an option to purchase 28,350 shares of Republic Services, Inc. common stock at an exercise price of $19.42 per share.
( 9)  The vesting schedule was accelerated for 37,800 options pursuant to merger agreement with Republic Services, Inc.
( 10)  Converted into an option to purchase 37,485 shares of Republic Services, Inc. common stock at an exercise price of $28.69 per share.
( 11)  The vesting schedule was accelerated for 41,650 options pursuant to merger agreement with Republic Services, Inc.
( 12)  Converted into an option to purchase 45,000 shares of Republic Services, Inc. common stock at an exercise price of $25.51 per share.
( 13)  The vesting schedule was accelerated for 100,000 options pursuant to merger agreement with Republic Services, Inc.
( 14)  1-for-1 conversion (i.e., one (1) restricted stock unit was converted into one (1) share of Issuer common stock).
( 15)  The vesting schedule for 72,855 restricted stock units was accelerated pursuant to the merger agreement with Republic Services, Inc.
( 16)  The vesting schedule for 24,285 restricted stock units was accelerated pursuant to merger agreement with Republic Services, Inc.
( 17)  The vesting schedule for 12,000 restricted stock units was accelerated pursuant to merger agreement with Republic Services, Inc.
( 18)  The vesting schedule for 5,400 restricted stock units was accelerated pursuant to merger agreement with Republic Services, Inc.
( 19)  The issuance date for 13,333 restricted stock units was accelerated pursuant to merger agreement with Republic Services, Inc.
( 20)  The vesting schedule for 6,667 restricted stock units was accelerated pursuant to merger agreement with Republic Services, Inc.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
HATHAWAY PETER S
18500 NORTH ALLIED WAY
PHOENIX, AZ 85054


Executive Vice President Chief Financial Officer

Signatures
/s/ Jo Lynn White, Attorney-in-Fact 12/9/2008
** Signature of Reporting Person Date


Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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