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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