Australian Govlink Issue 2 2018 | Page 14

12 SECURITY T he security industry performs an important frontline role in protecting crowded places, whether it is a sporting event or concert, shopping centre or civic space. A point acknowledged in the ANZCTC Strategy for Crowded Places from Terrorism released in 2017: “Private security providers and professionals play a central role in protecting crowded places. In many cases, private security personnel – including security contractors, risk analysis experts, and private security officers – are directly responsible for strengthening the security of crowded places. They are often the first responders to a terrorist incident.” Yet despite this, the procurement of security services by government regularly undervalues this role by awarding contracts at unsustainably low margins. Council or other government security contracts are often a much sought after commodity, as they can provide more regular ongoing work than other contracts. As a result, this has created a highly competitive environment in which some providers submit bids lower than would be required to pay the total cost of the employee to win a contract and some councils awarding contracts based on the price without conducting due diligence. In doing so this has driven a race to the bottom mentality where quality is compromised to achieve lower costs. As a result, several years ago ASIAL approached the Fair Work Ombudsman (FWO) with concerns that the procurement practices of Local Government were potentially in breach of s550 of the Fair Work Act by forcing prices to unsustainably low levels, resulting in legitimate employers missing out on Local Government contracts and employees being underpaid. Partnering with ASIAL and United Voice, FWO embarked on a two-stage approach of educating and auditing local councils and security providers about their workplace obligations. GOVLINK » ISSUE 2 2018 In July 2018, following an inquiry that examined the labour procurement arrangements relating to the engagement of security services by 23 local councils across all states and the Northern Territory, FWO released its findings (FWO - An Inquiry into the procurement of security services by local governments – June 2018). And the news is not go