Security industry review exposes little training, sham contracting

A review of Victoria’s troubled security firms, released by the Andrews government amid coronavirus outbreaks spread among guards at the state’s quarantine hotels, details an industry beset by poor hiring practices and contentious subcontracting policies.

It found security guards were lowly paid, regularly lacked English-language skills, and are often so poorly trained they do not perform the basic functions of their job.

The Andrews government review, that covers the industry and the state’s 33,000 licensed guards, was released last week, days after guards were cited as the likely source behind outbreaks.

In March, Premier Daniel Andrews announced that more than a dozen Melbourne hotels would house thousands of travellers returning from overseas for a compulsory 14-day quarantine.

But the coronavirus infections starting in those hotels among guards and their contacts have been identified by Mr Andrews as central to the wider outbreak now spreading across Melbourne.

The paper in part focuses on subcontracting, something most companies in the industry do.

The review's release came as it emerged the state government had selected a NSW firm not on its list of preferred security companies to run security at nine of the hotels.

That firm, Unified Security, subcontracted out work to at least one smaller firm after being contracted.

Unified Security provided guards at the Rydges on Swanston hotel, where one of the two quarantine hotel outbreaks occurred.

At the 2018 state election, the government promised to review the laws covering an industry beset by transient, casual labour and guards with deficient skills. It is the first review of the sector in a decade.

Lax hygiene has been blamed for infections among security staff and their contacts.Credit: Getty Images

The Department of Justice and Community Safety circulated the paper, which details the concerns of employers, employees, industry bodies and unions, and notes there is consensus that standards should be higher.

“The industry is characterised by a workforce that is highly casualised, relatively low-paid and transient,” the paper found. It said on-the-job training seldom occurred because most employers were not “willing to invest in casual or transient staff”.

Workers were often expected to “complete training on their own time”, while language barriers were so bad that in many cases “students may not be understanding the training material delivered”.

The report also delved into “sham contracting” – where an employer illegally pretends an employee is a private contractor so that the worker is responsible for their own pay and conditions.

In the security industry, it means that this employee “may no longer receive employment entitlements such as overtime, penalty rates, and leave”, the review said.

Many guards in the industry, it found, were asked to work as independent contractors or were paid cash-in-hand rather than electronically.

The Sunday Age has seen Whatsapp groups that include thousands of mainly south-Asian men who respond to job advertisements for security shifts at venues and events. Many of the advertisements state payment will be made in cash or via an ABN, a sign of sham contracting, and specify guards will be required to wear the uniform of the security company that holds the contract with the client.

While security guards at some of Melbourne’s highest profile events – the Spring Racing Carnival, or the grand prix for instance – “may appear to be working for a single private security company, but are in fact largely engaged by subcontractors”, the the United Workers Union has said.

One of the three security firms selected by the government without tender and at less than 24 hours notice to guard potential coronavirus infected returned travellers is Unified Security.

Registered and owned by New South Wales residents, the firm had guards working at nine of around 15 hotels used by the government to house travellers. Unified was not on a government “panel” that allowed five firms – MSS Security, G4S, National Protective Services, SecureCorp and Wilson – to be contracted at short notice.

The Andrews government on Friday declined to answer questions about the use of Unified Security despite it not being on this shortlist, instead issuing a statement only about its $3 million review of the botched quarantine program.

“A judicial inquiry has been established at arm’s length from [the] government to examine issues relating to hotel quarantine,” a spokeswoman said. “We will let the inquiry do its work – our focus remains on containing this virus.”

Unified Security, asked about how it came to be selected, said in a statement: “As Australia’s largest indigenous owned private security company, we were appointed to provide services in line with the Victorian government’s procurement guidelines.”

The statement said any further questions should be asked of the state government, which had approved its contracting arrangements.

The Department of Justice and Community Safety last week circulated a detailed paper to stakeholders in the security industry to elicit feedback on the first review of the sector in a decade.

A final report will be handed to the government in December, at which point the government may amend the act governing the industry.