SECURITY
• It may not always be appropriate to engage a
person or company to provide services under a
contracting arrangement;
• Trying to squeeze a work arrangement into
a ‘contracting box’, when the circumstances
call for an employment arrangement and
compliance with applicable industrial regulation,
can have expensive consequences; and,
• Using contracting to push responsibility
for compliance with applicable industrial
regulation – and liability for non-compliance –
down the supply chain may not work.
The former Fair Work Ombudsman, Nick Wilson,
warned last year that:
“Turning a corporately-sanctioned ‘blind-eye’ to
outsourced work that is performed by another
enterprise using contractors on below-award rates
of pay may expose enterprises up the procurement
chain to liability. All parties should undertake due
diligence when outsourcing work to contracted
workers, particularly to lowest-cost providers, to
ensure lower costs are attributable to efficiencies
in the business and not due to the potential
exploitation of workers on below award rates.”
So, what now?
The very nature of the security industry means
that there is a commercial imperative for security
businesses to subcontract work to meet short term
spikes in client demand. Having said that however,
the practice of sham subcontracting has a negative
effect on the entire industry and its customers.
Part of the solution is for government agencies to
show leadership when allocating security contracts.
They can do this by placing greater emphasis on
quality service provision rather than the lowest
possible price, which inevitably encourages lower
quality service from unscrupulous providers.
Education of clients is the key, whether
government or corporate.
In this regard ASIAL is working with FWO on the
Local Government Procurement Initiative, which
in time will to extend include other levels of
government. We will work with all government
agencies to develop fair and transparent
guidelines that will produce certainty and
confidence throughout the supply chain, resulting
in a more professional and sustainable private
security industry.
Note: The information provided above is for
convenient reference only. ASIAL and Chris
Delaney & Associates Pty Ltd provide this
information on the basis that it is not to be relied
upon in any or all cases, as the circumstances in
each matter are specific. Accordingly, we provide
this information for general reference only, but we
advise you take no action without prior reference
to an Employee Relations professional. ASIAL
members can contact Chris Delaney by emailing
[email protected]
Govlink Issue 2 2013
49