Handling labour unrest in the future - the way forward?

The labour strike season is set to open in South Africa. The period May to September is known as strike season as this is the time period when most and predominantly mining wage negotiations, takes place. It is rumoured and probably true that the mining industry is gearing themselves for unknown levels of labour unrest as double digit wage increase expectations would be tabled. Ironically the hunting season is also open in May.

How will the labour unrest be handled, would organised labour honour labour legislation, will there be a repeat of Marikana, will there be limitations on the use of force against striking workers and to what extent will unions have control over their members? Following the criticism at Marikana what can be expected from the SAP?

Would business expect private security to fulfil the role of the SAP in strike handling when it comes to the use of force or would it be more negotiated unrest and the handling thereof – we hope for a peaceful wage negotiation period in SA in 2013 hoping that lessons at Marikana in 2012 have been learnt in terms of the do’s and don’ts of strikes and the handling thereof. We cannot afford a repeat of the Marikana disaster!

The outcome of the Marikana Commission would be interesting and it would be interesting to see the limitations that would be put on law enforcement agencies and private security in terms of the handling of crowds in the future?

Impact of the Economic downturn on the security industry in SA.

Recession, economic downturn, impact of labour unrest on mining and the general economy, high labour force salary expectations, labour union fights for survival, political rivalry with external influences from socialist movements on labour issues  and now lately fragflation (high inflation and low economic growth) also influence the private security industry negatively. With more than 8 000 registered security businesses the “cake” is not big enough to give everyone a sizable opportunity under current conditions.

The reality is a decline in business spending or planning to spend on private security services and stretching payment terms to 60 days plus. Budget adjustments hardly exceed 6% whilst new security contracts are all signed on lower than current rates. The nett effect is an ailing private security industry dropping to net profit margins below 5% at rand values of between R300 and R350 per person per month. It is estimated that on equal time work, companies make more profit out of car guards than a security guard – up to R900 profit could be made from a car guard.

Despite for the above is the security industry growing – more and more new entrants are seen in the industry, new names emerge and “go down” (No nonsense security CC) more second hand bakkies of new companies feature and there are rumours of a growing dissatisfaction amongst security officers due to low rates, non complying security owners pertaining to provident fund contributions and statutory compliance. Government Gazette 36278 dated 28 March 2013 reflect on more than 200 security services providers withdrawn from rendering security services due to failure to pay annual PSIRA fees. In an April 2013 report it is published that only 480 private security companies out of 9020 registered companies contribute and comply with the regulations of the Private Security Services Provident Fund (PSSPF).

But to the contrary:  The Private Security Industry Regulatory Authority (PSIRA) is spending more than R65 milj on offices and furniture to improve their corporate image and R700 000 a year for a management events office with no events to manage, as published in a Parliaments portfolio committee report on police. The authority is funded through tariffs and fees from members – that is security companies and security officers contributing. To foot the bill, tariff increases imposed were almost 900% in 2012 and is now a cause for legal action from the private security industry. The chairman of PSIRA earns R1,44 milj per annum, which is according to the report R500 000 more than in equivalent entities.  All the positions in the Risk Management and Internal Audit and prosecution division were empty and the IT department appointed 5 new people. Despite for all of these the portfolio committee raised its concerns for poor performance, meeting only 14 of the 46 measureable targets leaving the authority with a 30,4% success rate.

Where does this leave private security companies and business?

 A decline in service levels, less innovative security solutions, security officers less cared for, increases in safety risks due to improper uniforms and protective measures with staff vulnerable due to non statutory compliance in terms of UIF, WCA and other compliant contributions and an industry looking shabby due to low cost uniforms? All of these in efforts to protect net profit margins and enhance shareholder expectations?

The serious security services provider would take on the challenge to compete on price (sic) and would differentiate the low price with additional products and services – over are the days where high prices would be justified with promises of better staff, better uniforms, better training and management. The era is entered (wrongly) where low prices will be protected by the above but business will require that ‘extra” from the service provider, despite for a low price.

 More and more smaller role players will vanish whilst BBBEE and Mining Charter requirements will put more pressure on the larger companies to share wealth in especially mining contracts with local role players putting additional pressure on profit margins being at least 26% less than a year ago.

Whilst survival will force security companies to “go for every new business opportunity” will the responsible business owner still wait and see to it that affordable business contracts are entered into. Mining security might not, if Mining Charter pressure continue to surface, be the lucrative business in the future.

Responsible business owners and users of private security will continue to maintain their values of preferring security services suppliers who care for their employees, value safety of staff and provide that bit extra that would put the user of security at ease of dealing with a responsible security services supplier. The risk of dishonest, unhappy and disgruntled security staff is a threat to business.

Irresponsible security businesses will underpay their staff, reduce costs on uniforms and site equipment and continue to be non statutory compliant – clever and innovative ideas to overcome high statutory expenses in terms of for example the 4,28% WCA contributions will become more pertinent whilst tax compliance would decrease. Security officer unhappiness and possible irresponsible industrial action could be the order of the day.

 Responsible security companies will continue to do business on quality standards, differentiate themselves from the rest of the market and wait for “better days to come” whilst the responsible user of security should appreciate and uses businesses that would be prepared to reduce costs, maintain standards and lower profits.

 The future

The future lies in the hands of true, honest and caring leaders with a passion for the industry, service delivery and maintenance of standards who rate quality as the first prize and then profits will follow immediately

 

 

SECURITY BRUTALITY

Having watched the video where an elderly lady got beaten up by store (CB clothing) security in Jane Furse in Sekhukhuneland in Limpopo Province (already in October 2012 but only surfaced now) can only be described as shocking. It was alleged that she stole a packet of under wear, but the violent beating, almost like a “tribal or bundu court”, is ridiculous.

This took place whilst being looked on by what is presumed to be clothing store staff. Luckily five arrests were executed in April 2013 and bail denied to the three main suspects. These three suspects, presumed to be security guards or staff performing security functions, are also facing charges of assault from a previous case. The question is – if they performed security functions they had to be registered as security officers –are they registered and who do they work for?

The levels of brutality in SA are getting out of hand – if it is not individual police officers, then security guards (recent example on illegal miners caught) and even striking workers. Where will it end?

There must be a “bigger picture” – are there underlying social frustrations or psychological disorders that requires attention? Can ordinary people act in this manner - are South Africans frustrated with each other, disgruntled with social systems or even politically disillusioned and tired of substandard living conditions or what is our problem in SA? Is this the lawless society that we live in where there is no respect for each other or the legal system - on all levels of society?

How low are our morals and what could be done to lift these morals?