Private Security industry still remains vulnerable – Department of Employment and Labour

Department of Employment and Labour's Inspection and Enforcement Services (IES) branch, Director Dr. Pravine Naidoo said the private security industry has some work to do to address challenges faced by workers.

Delivering an opening address on the purpose of the Private Security advocacy seminar today (Wednesday) Dr Naidoo welcomed industry players who came in large numbers by attending a departmental seminar, saying “This shows a commitment to good governance. He said the department has identified the Private Security sector as vulnerable. Dr Naidoo said the industry was identified as vulnerable because it was still confronted by various challenges.

“As much as we have Psira as well as the industry Bargaining Council, we still view the sector as vulnerable. Through our presence today we want to hear first-hand from various stakeholders and have a meaningful conversation with regard to the vulnerability, challenges, and successes that have come about since the Bargaining Council was formed.

Dr Naidoo said the Department also seeks to raise awareness of compliance with labour laws. He said the engagement today was a first step towards meaningful engagement. He said this would open many doors to engage in the future.

He was addressing the IES Private Security advocacy seminar with stakeholders in the Private industry held in Boksburg.

The purpose of the Advocacy Seminar is to conduct awareness on employment and labour legislation, while at the same time educating employers and employees in order to improve compliance and thereby ensure that Decent Work in the Private Security industry would be realised.

The seminar was addressed by Department officials and; the Private Security Industry Regulatory Authority (Psira). The industry regulator estimates that the industry is annually valued at R200 billion. Psira said from 194 service providers in 2001 these have grown to 614 in 2024. The regulator said the industry is still faced with challenges that range from the exploitation of labour, wage underpayments, deductions and failure to pay (provident fund, UIF, and industry annual fee), underreporting/declarations of employees, the proliferation of firearms and deployment of unregistered and undocumented foreign nationals.

Other speakers were from the Private Security Industry Bargaining Council; Department of Home Affairs; Compensation Fund, Unemployment Insurance Fund, and Commission for Conciliation Mediation and Arbitration.

The National Bargaining Council for the Private Security Sector has identified industry compliance challenges such as a lack of synergy and collaboration between Government and Regulators; growth of unregistered small security businesses reducing compliance; and economic pressures on clients constraining working conditions. The state has identified: non-compliance with the Council's Collective Agreements; non-payment of prescribed minimum wages; late payment of employees' wages; non-payment of annual leave and annual bonus; non-registration and non-payment of provident fund contributions; and non-payment of other statutory benefits, such as UIF.

According to the Department of Home Affairs, the private security space is abuzz with employment of undocumented and illegal immigrants. The Department said the sector is under the radar for joint inspections with the Department of Employment and Labour.

For more information, contact:
Teboho Thejane - Departmental Spokesperson
Cell: 082 697 0694
Teboho.Thejane@labour.gov.za