SEC URIT Y F E AT URE
IT COSTS MORE TO PROVIDE A SECURITY OFFICER THAN YOU MAY THINK
2 2 SEC UR IT Y IN S IDE R | AU G/ SEP 201 9
It is one of ASIAL’s key objectives to have users (customers) of the private security industry recognize and appreciate the true value of a professional security service and be prepared to look beyond seeking out the lowest possible price. Supply chain issues have a dramatic effect from the customer right through to the security officer providing the service. Users including local, state and Federal Governments, large retailers and procurement managers in general, are continually pushing prices down with little regard to the true costs associated with providing the service. The security industry is heavily regulated. Business owners must have Security business licenses (and often individual licenses) in every state and territory in which they provide a service. In Queensland and Victoria most must be registered as labour hire providers and every employer must provide minimum pay and conditions for employees, including worker’s compensation, superannuation etc. Recently minimum wages in the Security Services Industry Award 2010 (as with all 122 awards) increased by 3%. These are minimum requirements at law and must be observed by both the private security provider and the user of the service (s.550 Fair Work Act 2009). This increase along with additional costs arising out of regulatory changes in all states and territories will have a significant impact on private security providers. To put all of this into perspective, as a minimum, security providers must cover the following costs for a Level 1 Security Guard working a 24/7 Roster (see right). One regulator recently announced that Security industry profit margins were 9.8% and higher than other industries. That is totally inconsistent with the reports we get from the bulk of Manpower members, who are small businesses working alongside their employees and barely making a profit. ASIAL hears every day from members who find it impossible to get customers to pay rates that will even cover these costs let alone allow for a modest profit. Regulators seem to have the attitude that if the regulations aren’t working just add another layer of regulation and that will fix the problem. It won’t! Regulators need to work harder on dealing with deliberate breaches rather than targeting honest