Corporate Security

Physical Security

IT Security

Personnel

Information Security

Reputation

Special Sections

Home » National Security » Audit makes case for workplace relations education

Audit makes case for workplace relations education

by Ernie Davitt, National Affairs Editor, ASM
02/09/2010
Contact the Author

Security firms around Australia face ongoing scrutiny following the Australian Fair Work Ombudsman’s decision to fine a number of security companies hundreds of thousands of dollars for underpaying their staff.

Almost half the companies inspected in a random audit earlier in 2010 were found to be breaking the law.

The Fair Work Ombudsman is calling for leadership from the security industry to dramatically improve its compliance with workplace relations laws. Almost half the security companies examined by inspectors as part of a national campaign were found to be in breach of the Fair Work Act.

Over $450,000 in back-pay was also being recovered for more than 650 workers found to have been underpaid.

Fair Work Ombudsman Executive Director Michael Campbell says the results are disturbing and highlight a need for ongoing education within the industry.

However, he says this is not a job for his agency alone, and is urging employer organisations, unions and large companies to help drive behavioural change.

The Fair Work Ombudsman began investigating security firms because of concerns about the high number of complaints and prosecutions the security industry was generating. It also received intelligence from a number of Federal and State agencies.

Fair Work inspectors have completed 256 audits. Of these, 126 – or 49 per cent – were non-compliant. Of the 126 with contraventions, 60 had underpaid staff and 66 were found to have record-keeping and pay-slip breaches. A further 42 companies were under investigation.

“In an industry characterised by long working hours, night shifts, high staff turnover and casual labour, it is disappointing to find just 51 per cent of employers meeting their lawful obligations,” Mr Campbell said.

“What we have found is a widespread use of flat rates of pay in the belief that such arrangements would compensate for allowances, shift and weekend penalties, overtime and annual leave loadings.

“Some employers claimed they had verbal agreements with casual employees to work more than eight ordinary hours per shift and with full-time employees to work more than 10 ordinary hours per shift without overtime payments.”

Mr Campbell said a handshake agreement to pay workers a flat rate – even if it was above the minimum hourly rate in the award - did not negate the need to pay workers their full penalty rates for overtime, night and weekend work.

Fair Work inspectors randomly selected security companies for audit last October after first writing to 10,000 employers to provide information about the Fair Work Act.

Key stakeholders were also advised, including the Australian Security Industry Association, Security Providers’ Association of Australia, Australian Industries Group, Liquor Hospitality & Miscellaneous Union and other government agencies.

“We were pleased with the interest of employer associations and the willingness of employers to voluntarily rectify issues as they were identified – but now we need a strong commitment from this sector to work collaboratively with us to vastly improve levels of education and compliance,” Mr Campbell said.

“A number of employers were very positive about the campaign as they felt that poor practices among their competitors should be exposed and remedied, so we need to harness that attitude to assist to bring about cultural change and significant improvements.

“We are mindful that this is an industry which employs large numbers of young people and migrant workers who may be vulnerable if they are not fully aware of their workplace rights.”

Mr Campbell says a follow-up campaign next year, to re-audit a sample of those companies found to be non-compliant, is likely.

The campaign focused on different sectors of the industry in each State and Territory.