camprosa international conference insourcing vs ... · psira is a statutory body established in...
TRANSCRIPT
CAMPROSA INTERNATIONAL
CONFERENCE
INSOURCING VS OUTSOURCING
05 SEPTEMBER 2016
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DELEGATION
PSiRA Delegation:
• Prof NM Mazibuko : Chairperson of Council
PSiRA
• Mr. Manabela Sam Chauke : Chief Executive Officer
PSiRA
PRIVATE SECURITY INDUSTRY REGULATORY AUTHORITY (PSiRA)(T:) +27 12 003 0600/01
(F:) +27 86 212 8616420 Witch-Hazel Avenue,
Block B –Eco Glades 2 Office Park,
Highveld Ext 70http://www.psira.co.za/
PRESENTATION OVERVIEW
PART A: About PSiRA
– Brief Background
– Governance Structure
– Statutory Mandate
PART B: ABOUT THE INDUSTRY
– Industry Size
– Sectors and Categories
– Commercial and In-house Service Providers
PART B: ABOUT INSOURCING
– What must be considered
– Impact of Insourcing
– Recommendations
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Part A :About PSiRA
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Brief Background about PSiRA
Chapter 11 of Constitution of the Republic of South Africa , Act 108 of
1996 , section 199 (3) Establishment , Structuring and Conducting
of security services
Section 199 (3) “Other armed organizations and services by National
Legislation"
PSIRA is a statutory body established in terms Sec 2 of Act 56 of 2001
PSIR Act came into effect on 14 February 2002 and governed by a
Council
Before this the industry was regulated by the Security Officers’ Board in
terms of the 1987 Act
In terms of the old Act, In-House Security providers were excluded
from regulation by the Board
There are various rights and duties that the Authority places on the SSP
in-house employers and on Security Service Consumers (clients)
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ORGANISATIONAL STRUCTURE
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ArcadiaH/O :Centurion
Head Office / Regional Offices Satellite Offices
National Offices _____________________________________________________________________
Legislative Mandate
The primary objectives of PSiRA are to regulate the private security
industry and to exercise effective control over the practice of the
occupation of security service provider in the public and national
interest and in the interest of the private security industry itself.
SUMMARY OF THE MANDATE:
Promote a legitimate Industry subject to the Constitution and other laws of the Country;
Ensure the Industry act in public and national interest;
Determine and enforce minimum occupational conduct by service providers;
Ensure transparent, fair, objective and timeous registration process;
Ensure compliance through active monitoring and investigation of service providers; and
Promote services that responds to the need of users and of the community,
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Part: BAbout the Industry
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Size of the Industry
Registered and active security businesses per province:
Gauteng - 3 712
Eastern Cape - 783
Western Cape - 1 020
Limpopo - 861
N/West Prov. - 403
Free State - 222
N/Cape - 137
KZN - 1 657
Mpumalanga - 543
Market Share by Province
40%GP
6%
MP
8%
EC
11%
WC9%
LMP
4%NW
2%FS
1%
NC18%
KZN
Gauteng
Mpumalanga
Eastern Cape
Western Cape
Limpopo
North West
Free State
Northern Cape
KwaZulu-Natal
Industry Categories
Guarding Sector
Close Protection
Response Security
Assets In transit
Events Security
Manufacturers
,Importers and
distributors
Locksmiths; and
Security advisory
Electronic Security
Security Training
Private Investigators
K9 Units etc
Which do you Insource?
Sector Market Share
Guarding Sector
> R80 Billion/Annum
Electronic Sector
(Price Unregulated)
Other Sectors
(untapped)
= Rand
Guards= Active No
Active No * Average Cost
of Service *12 Months=
Total Cost Per Annum
Commercial vs In-house Security Services
In-house employs security officers for self protection
Security Service Provider – renders service to another
person for remuneration , fee , reward or benefit.
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In-House
RetailSector
Public Sector
Neighbourhood Watch
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Part: CAbout Insourcing
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Factors to Consider
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Insourcing , What we
must consider?
Factors to Consider
Obligations in terms of PSIRA ACT
Registration as in-house employer
Annual amount payable by business – R3 500-00 per annum
Obligations in terms of Private Security Industry Regulations
Only use employees registered as security service providers (ensure
registration / training, etc.)
Comply with deductions of annual amounts payable by security service
providers
Keeping of documents at an accessible administrative office for minimum
of 4 years
Updating records within 7 days after changes
Keeping records electronically or in document format. If electronic, back-
up copies must be made
Compliance imperatives
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Factors to Consider
Compliance Imperatives
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Legal authorization in respect of firearms, deductions of annual fees
- Reporting changes to the Authority
- Uniform and firearm requirements (Regulation 13)
Obligations in terms of Code of Conduct Regulations
- Inspections by PSIRA to verify compliance
- Security service providers (in-house) must comply with all
obligations in terms of COC
- Appoint responsible person to manage and oversee security service
providers
- Responsible person must ensure compliance with Act & Regulations
Factors to Consider
Cost of Non-Compliance
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Non Compliance constitute improper conduct and criminal office
Fines up to R1 million per count
Fines up to R 100 000 for failure to pay annual fees
Labour unrest (security industry and in-house environment)
Additional security needs for specific time periods / projects
Uniform / firearm requirements
Supervision / control (24/7)
Oversight and regulation by PSIRA / DOL / Bargaining Council, etc.
Security not core business (no expertise)
Annual training to all security service providers on legal provisions
regarding regulation of the industry
Impact of Insourcing
On the Regulator
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Non Compliance constitute improper conduct and criminal office
inspector / security business ratio will increase
Monitoring of conduct will significantly be reduce
Current Funding Model will have to be revised
Impact of Insourcing
On the Service Officer
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Wages will improve and benefit guards significantly
Exploitation may increase due to reduced monitoring
Proposed Bargaining Council will fail to take off
Sectoral Determination 6 will not apply
On the Service Provider
Guarding Sector will disappear
Loss of business will impact financial on sustainability
Impact of Insourcing
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On the Consumer
More collusion with staff
Risk will have to be absorbed internally
Cost of Insurance may increase due to lack of professional standards
PSiRA on Insourcing
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Opinion and recommendations
Complete Insourcing of security services not Supported by PSiRA: IHEs and
other training institutions do not have the capacity to deliver all or most service
categories outlined on S12
Hybrid model to insource specific catgories personnel but outsource expertise
may be a solutions: IHEs determine and agree on %, pros and cons for
insourcing [based on common safety and security needs within the public higher
education and training sector; benefits for permanent staff including benefits for
their children at IHEs].
Co-operatives with proper management and support structures may be an
alternative to insourcing [?????]
Insourcing will negatively impact on the Private Security industry.
PSiRA on Insourcing
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Opinion and recommendations
The cost of security services sky rocket as only unregulated service may prevail
Safety and security essential support service: require appropriate skills,
accountability, knowledge and tools [ICT, Security Vetting].
Insourcing will negatively impact on the Private Security industry
In-house infrastructure at IHEs will be massive if not impossible. QUESTION: Is
security core business of IHEs?
IHEs develop a Comprehensive Safety & Security Plan informed amongst other
things by core safety and security needs in higher education and training, time
& space, technology era; capabilities & technologies for safety and security.
Opinion and Recommendations
Other critical players with relevant expertise: [SAPS; PSI, student leadership,
Unions of workers in the industry] – Have open robust indaba on safety &
security: short and long term.
Need for INTELLIGENCE WAYS OF MONITORING + INTEGRITY OF DATA/INFO
which inform need and nature of outsourcing/insourcing.
IHE develop culture of scanning safety and security environment vs crises
response.
Preventive measures: stability in other aspects of campus life, eliminate
stressors within IHEs systems, processes and procedures.
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Impact of Insourcing
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Opinion and recommendations
Safety & security be integrated into other aspects of campus life [
enrolment plans for projections; living and learning, registration,
events, physical access, policies on academic inclusion/exclusion,
accommodation, fees/increments]
Skills for 21stCentury [technical, analytical, develop models for safety
& security, projections].
Risk of non-compliance will increase.
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Thank You
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