SERVICE DELIVERY BY PRIVATE

SECURITY AGENCIES

USER’S PERSPECTIVE

TALKING POINTS

An Industry Perspective

A Guard’s Perspective

Hospitality Industry Perspective

A Suggested Road Map

AN INDUSTRY PERSPECTIVE

The workforce of the private security industry is likely to touch 1.20 crores by 2020-22 (Source – Chairman CAPSI); quantity vs quality? Cheap vs skilled labour

GDP growth indicators show that in face of failed monsoons and slack in manufacturing sector, the service sector has been driving the economy since 2013-14; though it has not translated into any structured improvement in regulation of PS industry

The industry is mostly male dominated with women only constituting single digit contribution (Definite data not available)

The large pool of un-employed educated youth is not attracted to the job profile due to lack of structured growth opportunities; invariably last option for the less educated

Being a non core operation in most industries, the qualitative improvement is biased towards the productive roles

Lack of parity in minimum wage structure in all urban agglomerations

The current work force figures do not account for security personnel at functional and managerial levels on permanent rolls of industrial sector. In hospitality sector it is 40-50% in comparison with numbers of contract security.

The minimum qualifications to become a Security Guard under the PSAR Act are not commensurate to security needs of most industries

The private security industry at the national level may outnumber local police force (PMF); should play an effective role in crime prevention and upping the deterrence levels- albeit, authentic estimates are NOT available about the number of private security firms (un-organized), number of personnel engaged by such firms and the proportionate share of various players in this field; tangible contribution to securing smart cities or assisting in smart policing is doubtful.

Is the controlling authority nominated under the PSAR Act equipped to effectively monitor the licensing norms?

The security guards are visibly industry orphans who are neither a direct liability of the principle employer nor the security agency who employs them

A driver of a CIT agency ran away with Rs 22 crores from the cash van in his charge in Delhi; was apprehended after few hours – a case study for lack of application in executing the heist. (Crime techniques are inversely higher than the capability of the protecting force )

AN INDUSTRY PERSPECTIVE

Barring exceptions(Mumbai) there is negligible (less than 1%) representation of private security guards in central or state trade unions

Minimum wages notification is the salary trigger; unfortunately many states are inordinately late in revising the min wages or the hikes are abysmal; other labour intensive state industries dictate the minimum wages

PSUs also tend to cling to the minimum rule though they pay more than the private sector

In order to safeguard the interests of ex-servicemen; the mean age of guards in PSU is high and denies higher wage jobs to younger aspirants

The professionals skills are inversely proportional to the crime rates and techniques

Lack of training and tools to manage irate mobs which pose a viable threat

There is lack of self regulation on recruitment, training; consequently bears on performance, even large players have not been able to perform consistently on the deliverables

AN INDUSTRY PERSPECTIVE

A CONTRACT GUARD’S PERSPECTIVE Social security, professional hierarchy and promotion opportunities of

personnel engaged by private security agencies is LOW compared with other labour grades – technical, skilled, PSU, Govt

Lack of uniformity in working hours vis-a-vis remuneration, legitimate allowances, leaves, security of employment.

Lack of awareness about their legitimate dues and rights under various labour laws and social security laws applicable to them

Level of collective consciousness and role modeling is low in comparison to uniformed forces; workforce lacks confidence

They are expected to perform policing roles and duties with some challenges, but comparing their roles with Police, CPOs or defence personnel is neither justified nor viable.

Earnings are spent on conveyance, accommodation, ration, medical expenses and remittance, after which they are left with nothing much to improve their social status or care for their children’s education and family health. ( Lack of ESI cover in rural areas)

A CONTRACT GUARD’S PERSPECTIVE

Uniform and gear is not work-fit, which they have to pay for through monthly wages, leads to worn out uniform at work as they avoid extra expenses on new uniform

Conditions at work dictate turnover at most times

Majority are migrant labour with no local family compulsions, insist on working 30 days to increase the salary payout which has a negative impact on performance

Working hours are long with a monotonous profile, leads to lack of interest and low physical fitness

Negative bio-cycle effects due to 15 days/ one month of night duties

Original documents including Govt IDs are held with the PSA

Have never been provided with leave travel concession by the PSA; once in 2 years/ every year?

Salaries are always distributed after 10th of the month, sometimes after 20th of the month

Payment of bonus and gratuity is not commensurate to service

Availability of medical cover is not commensurate to expenses, medical exigencies are ignored to save costs leading to lack in performance

Roles of security guard:

Basic -Access control at all entry/ exits, frisking and managing entry points, visitor

management, managing key control, parking management, perimeter sanctity, receiving

material, assist in fire and life safety, lead first response in emergent situations, pick up

drop escort duties

Desirable – handling guest complaints, report writing, main building and core security

rounds, self defence, administering first aid to staff and guests, CCTV operations,

checking of fire detection and suppression equipment, valet parking, manning technology

tools – (XBS, UVSS, explosive detectors) and night club operations

Protection against an organized assault does not exist in view of lack of cognizable

form of defence against fire arms; rely solely on law and order to respond

Loss prevention is a larger role than asset protection; prevent losses inflicted

through theft, fraud and negligence by employees, requires a higher IQ level and

tenacity to enquire

Need to hire private security guards

Non core operation, at floor level, outsourcing is preferred

Reduce on roll numbers, reduce liability of leaves and gratuity, guards are available at

minimum wages

Variable demand in case of forced attrition or low business, non performers can be

discarded

Contract guarding available for longer shifts

Need for specialized/ additional resources is event based and infrequent; reduce

standing costs

HOSPITALITY INDUSTRY PERSPECTIVE

Hidden costs

Professional or material differentiation with on roll employees is not practiced

PF and ESI payouts are more or less even with on roll employees

Meals and facilities cost is same as for on roll employees but is not factored in

budgeting

Final payout to PSA including service tax plus service charges (25%); in some

A and B tier cities is higher than on roll guards

Re- training the guards and valets is a considerable expense in time and

resources

Uniform of contract guards is mostly unsuitable and over emphasizes the

agency signature

Communication skills and soft skills are mostly poor to below average;

much needed skills in commercial and retail sectors

Statutory compliances of PSAs are delayed , in-transparent. Invariably

monthly billing is delayed and irregular in submission

On site supervision is not consistent; role of field officers and their

competence is limited

HOSPITALITY INDUSTRY PERSPECTIVE

During contract negotiations, PSA insist on higher service

charge margins but rarely argue about facilities for guards

Salary disbursal is not uniform, 26 day and 30 day formats on

ERP which deny equitable payments to Guards

Accommodation with basic amenities outside the place of

employment are mostly chargeable without any subsidy

Background verification is most neglected portion of personal

documentation; invariably delayed as the guards force is mostly

migratory

Guards have to rely on PSA with centralized PF contributions

for withdraw the funds and account transfer

Major workforce from MP, Bihar, Chattisgarh and North East;

leads to major voids in manning during mass leave in festive

season for which the PSAs have little recourse presently

HOSPITALITY INDUSTRY PERSPECTIVE

A SUGGESTED ROADMAP

State level Statutory Boards in addition and above the controlling authority

specified by PSAR Act to streamline

recruitment

training and skill development

salary fixation & revisions,

allowances

special benefits

certification

compliance regulation

A working example exists in Mumbai through the Security Guard Board for

Brihan Mumbai and Thane

Charter for the statutory board – Recruitment and Operations

Manage a standard personal documentation format which is bio-metric and

available online

Grading and notification of specialized skills in the workforce inter-alia only

registered guards and professionals can be hired by PSUs, BFSI and private

industry sectors

Validate credentials and assess standards of arms license applicants, thereby

enable employability as armed guards- BFSI and cash services, personnel

security

A SUGGESTED ROADMAP- STATE LEVEL STATUTORY BOARD

Recruitment and Training

Auditing and grading the PSA operation in manning and cash services to

maintain initial and concurrent standards

Grading entails industry specific skills training of guards, application tests

and distribution for industry sectors through classification- NOS/ SSSDC

norms

Skills training accreditation

Talent management for promotion enablement and intra-industry transfer

Arms License

Examine necessity of fire-arms license for specific sites and allot

licenses to employ trained resources who hold a valid arms license and

conduct regular firing practice

Regulate interstate transfer of registered armed guards

Conduct test on firing skills of the license holders and serviceability of

weapons

Penal Powers

Based on audits on performance and deliverables

Penal deductions, revocation of license

A SUGGESTED ROADMAP - STATUTORY COMPLAINCES

Online validation of PF accounts through UAN has improved

contribution; PSAs should enable online registration of all

accounts so that all enrolled personnel can monitor their

accounts. It should be linked to AADHAR for simplicity in

identification. A easily understood and accessible human

resource information system for employees of each PSA

ESI cover is not uniform in most states, medical insurance

should be made compulsory as most guard force is migratory

and stay away from families. Legislation to make contribution

by both set of employers.

Minimum wages act, contract labour act and shops and

establishment act should be merged to formulate a single

labour act which clarifies all areas of doubt and obviates legal

subterfuge

Is there is need to adopt a hourly rate which overrides the riddle

of 8 and 12 hours/ extra hours payment?

Turnover of resources through mutual consent of principle employer

after completing a specific period say one year

Annual training certification and classification at PSA training centre

Legislation to introduce compulsory participation of women in PS

industry, might promote family life

Availability of lady guards during zero shift is a challenge though

women employees are at work in other floor areas

The concept of a mutual aid association is under discussion but at a

nascent stage without any pragmatic steps to rehearse for emergent

situations; it should be added to the PS charter for smart policing

PS industry should proactively undertake background verification of

other outsourced services employed by industrial sector in tandem

with local police for smart policing- States Police should consider

outsourcing

A SUGGESTED ROADMAP