Update from SASA

From the desk of Tony Botes, SASA National Administrator.

Private Security Industry

— Challenges for 2022

The coming year is bound to be the most difficult year for the private security industry, massively impacted by several factors that we have identified and probably many more than we can even imagine – or predict – as the year progresses.

Covid-19

The pandemic, which has now been with us since March 2020, is showing no sign of abatement and is expected to continue impacting negatively on the national economy and even more so on the private security sector in South Africa.

SASA has, in collaboration with ISIO (International Security Industry Organization), and CAPSI (Security Association of India), developed highly advanced Covid-19 protocols for the private security industry, as we believe that only we can enforce effective measures to minimise, and maybe even eventually eliminate, this biological threat. Unfortunately, our Department of Health has, so far, ignored our approaches of free cooperation in this regard, which is very disappointing!

Our security officers face the brunt of the challenges from our population when they try to enforce adequate C-19 protocols and, as such, are also facing extremely high risks in performing these tasks.

Consumer resistance

Covid-19, and the economic catastrophe it has caused, has resulted in massive consumer resistance to existing statutory increases in remuneration and benefits, which were gazetted in early 2020, before the pandemic, and valid for three years, until the second quarter of 2023.

Furthermore, instead of increasing their security complement levels to assist in combating the spread of Covid-19, many clients have, in fact, reduced the numbers of contracted security officers.

To compound this, virtually every consumer has demanded rates lower than those in place prior to the pandemic, which leads us to the next point.

Non-compliance

Unreasonable consumer ‘push back’ has led to a serious increase in gross criminal non-compliance by many security service providers in an effort to retain their existing clients. Such non-compliance can only result in the security officers on the ground being cheated out of their statutory minimum levels of remuneration and benefits, which – in turn – must lead to an elevated level of job dissatisfaction and a sub-standard level of security. Neither of the regulators in the private security industry – PSIRA (Private Security Industry Regulatory Authority) and the National Bargaining Council for the Private Security Industry (NBCPSS) – have the capacity to effectively police the more than 10,500 registered security companies, not to mention the number of illegal unregistered companies that have emerged during the past 18 or so months.

Furthermore, mainly because of the consumer resistance to what they see as unaffordable prices for security services, there has been a critical increase in the use of: • unregistered ‘fly by night’ security operators • unregistered security officers (often undocumented foreigners, and some possibly with criminal records) • disguised employment relationships between the security businesses and their employees (independent contractors, also referred to as self-employed security officers, cooperative structures, unregistered

‘learners’ being used as fully qualified security officers, etc.) • security service providers, whether willingly or not, failing to pay over deducted provident fund, funeral scheme, and medical insurance premiums, as well as UIF (Unemployment Insurance Fund) contributions, all of which will have a disastrous impact on the security officers who might lose their jobs, become ill or even die.

There are unfortunately many hundreds of security service consumers who have closed their doors (hopefully not permanently), which has resulted in significant job losses in our industry, despite the fact that a few clients have been proactive and – because of the pandemic – increased their security requirements because of the access control measures required.

Whatever the reason, all consumers are under serious pressure to reduce costs and we believe that, in the months ahead, this will result in further job losses.

Many consumers are also now employing their own security officers, some blissfully unaware that they should also register with PSIRA as inhouse security employers, and that the minimum levels of remuneration and benefits also apply to them. Without professional supervision, such insourced security is prone to be of a significantly lower quality, which greatly increases the risk to life and property.

The use of electronic security measures such as CCTV and electric fence alarms is mostly ineffective if not monitored 24/7, and it is advisable that these be used in conjunction with manned guarding. Such electronic equipment, usually being imported from abroad, is becoming increasingly expensive, mainly because of the poor exchange rates and the increased demand internationally. Furthermore, much of the over-the-counter electronic security equipment is not of a standard that is dependable. We are, however, confident that SASA members, who are bound by an extremely strict code of conduct and compliance requirements, are remaining fully compliant and will continue to do so going forward.

Profitability

Profit margins in the private security industry have dropped to an all-time low, which will undoubtedly have a negative impact on many of the security businesses, with a logical reduction in service levels and more job losses.

The private security industry is due for another statutory wage increase in March 2022, which will likely create more consumer resistance, non-compliance, and unemployment.

The private security industry, earlier this year, managed to apply for and was granted certain small but welcome exemptions in respect of allowances and Provident Fund premiums. The last of these will expire in August 2022, which will once again result in a slight cost increase.

Wage negotiations for March 2023 will commence early in 2022 and it is expected that demands will be unaffordable. We expect the process to be more difficult than ever before, with a possibility of industrial action if labour’s expectations are not met.

PSIRA fees

PSIRA has just published its proposed new annual fees for security service providers (including inhouse security employers) and security officers, to come into effect from April 2022. We will be engaging with them to minimise the impact on the industry.

PSIRA uniform legislation

The entity recently promulgated new legislation, in terms of which no uniforms, vehicles or branding could, in any way, resemble or be construed to be that of the SAPS (South African Police Service), SANDF (South African National Defence Force), Correctional Services, municipal/traffic police or any other law enforcement agency.

In terms of this new legislation, all shades of blue and camouflage is prohibited, as well as the material or colours of any of the above. Blue is currently the dominant colour in the private security industry, which is going to result in unbudgeted costs for virtually every security company.

PSIRA digital transformation

The regulator is in the process of totally digitising their registration and renewal processes, which must have cost them millions, which they are going to have to recover from the industry role players, employers and employees.

PSIRA training standards

The PSIRA ‘grade’ training has been in existence since the early 1990s and, understandably, is way overdue for an upgrade, but there’s little doubt that the result will be a ‘double whammy’ for both employers and employees in the industry in terms of time and costs.

SAPS and firearm legislation

With the Minister of Police intent on reducing the numbers and types of firearms in private hands, there’s going to be a cost impact on the industry while also reducing its ability to fight crime. It’s important to note that South Africa’s private security industry collectively employs more people than the SAPS and the SANDF together. Add to this what happened in KZN, Gauteng and other areas in July 2021... it is ironic that, while the looting was taking place, SASA was asked by the Minister, via PSIRA, what the private security was doing to assist the police in terms of combating the unrest.

Critical risk factors

Our national infrastructure – Eskom, Transnet and others – has deteriorated to such an extent that we’re expecting an increase in economic crimes as well as crimes against businesses and individuals (kidnapping, looting and organised and opportunistic offences).

Summary

We believe that the above factors are going to have a profoundly serious and negative impact on the private security industry, but at the same time, we must and will survive through 2022 and beyond.

Benefits of SASA membership:

• A strictly applied Code of Ethics • Representation at national and local government level • Industry exposure in the media as well as at major shows and exhibitions • Contacts and networking opportunities • Discounted training courses, events and seminars • Access to a security library managed by

UNISA (University of South Africa) • Updates on new legislation and other industry-relevant information • Access to security-related and affiliated associations in South Africa and overseas • The SASA national website • A central administration office • Free digital subscription to Security Focus

Africa magazine, the official journal of

SASA • A mentorship programme which is designed to guide and assist startup security companies with attaining the compliance standards required to qualify for Gold Membership

For more information about what SASA does and how it can help you and your company, please contact:

Tony Botes, SASA National Administrator, at: Tel: 0861 100 680 / 083 650 4981 Cell: 083 272 1373 Email: info@sasecurity.co.za / tony@sasecurity.co.za Website: www.sasecurity.co.za