The latest progress on the industry wage negotiations as well as the Private Security Industry Regulatory Authority’s proposed fee increases were the main topics of discussion at a recent breakfast, hosted by the Security Association of South Africa (SASA) Gauteng branch.
Welcoming visitors from a broad range of the security industry to the event, both Gary Streek, chairman of SASA Gauteng as well as Gerhardt Oosthuizen, vice chairman of SASA Gauteng, emphasised the importance of SASA’s role in keeping its members up-to-date with the latest issues affecting the security industry. Gary Streek also encouraged SASA members to join the SASA Gauteng committee, saying that the Gauteng branch would welcome input from its members.
Guest speaker, Tony Botes, secretary of the Security Services Employers Organisation (SSEO), shared with attendees at the event some of the complexities involved in the latest industry wage negotiations. Botes further shared with members the latest news regarding PSIRA’s proposed fee increases.
According to Botes, the history of this issue dates back to March 2011 when PSIRA embarked on a consultation exercise with regard to increasing their fees later during that same year. The Security Industry Alliance (SIA), on behalf of their constituent members, made two detailed submissions and also requested a meeting with the director and the PSIRA Board, to further explain its position.
In late November 2011, the industry received news that the new tariffs had been promulgated via a government gazette and that these fees, effective as from December 2011, would entail the following increases:
* Service providers’ company levy would increase from R250,00 per month (R3000,00 per year) to R4250,00 per year, but now payable annually upfront – an increase of 40%.
* Service provider’s employee levy would increase from R0,70 per month to R7,00 per month, also now payable upfront – an increase of 1000%.
* Security Officers’ levy (payable by the employee) would remain at R7,00 per month.
“We immediately briefed counsel and met with Advocate Mike Hellens, together with attorney Piet Bester,” says Botes. “Counsel immediately wrote to the director of PSIRA, Sam Chauke, expressing our opposition to the amended (new) regulations and our intention to urgently apply for a review thereof.”
Botes goes on to say that PSIRA, through Sam Chauke, almost immediately agreed, in writing, to postpone the implementation of the new regulations, pending further discussions with SIA.
According to Botes a meeting was then scheduled for late January 2012, but then PSIRA announced, before the date of that meeting, that the new fees would apply as from the beginning of January 2012, payment of all fees up to 31 March 2012 were demanded by 3 February 2012.
The majority of the members affiliated to SIA decided to ignore the new fees, pending the review process, and undertook to remain compliant in respect of the old fee structure.
“SIA proceeded with preparation of the papers for the review application in the meantime, but the backlash from PSIRA was virtually instantaneous,” says Botes. “PSIRA distributed threatening e-mails and SMS messages to service providers, promising to suspend and eventually deregister non-compliant companies and also refused to issue Letters of Good Standing (required for almost all tender applications), to process training course reports and, in some cases, to process registration applications for security officers trying to be employed by such pariah non-compliant companies.”
SIA thereupon applied for an urgent interdict, which was granted against the director of PSIRA, the chairman of the PSIRA Board and the Minister of Police. Botes goes on to say that this was not an interim order, but a final judgement.
“PSIRA still continued, in a number of cases, to refuse to render services to so-called non-compliant companies and our counsel immediately started drafting papers requesting warrants of arrest against the director, the chairman and the Minister,” says Botes. “After discussions with PSIRA’s lawyers, Sam Chauke immediately undertook to instruct all departments within PSIRA to abide by the judgement.”
According to Botes, Mike Hellens is currently attempting to expedite the review hearing, in light of the dramatically powerful judgement. “In our opinion, our case is extremely strong,” says Botes. “We are confident of a positive judgement in our favour, again with a cost award we hope. In the meantime our members can continue to pay the old fees on a monthly basis, without fear of prosecution or victimisation by PSIRA.”
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