Local councils could be setting themselves up for legal stoushes with security workers by signing low-cost contracts.
The Fair Work Ombudsman issued a warning to councils last week after the security industry raised concerns that competition was driving down the cost of tender bids.
Fair Work Ombudsman Natalie James said councils should ensure that cheap contracts were not resulting in security firms underpaying their employees.
“If a council is buying in security services at a price that doesn’t allow the contractor to pay an average of $24 an hour, then there is a real possibility the employee is being underpaid,” she said.
Ms James said her office would be working with the Australian Security Industry Association (ASIAL) and unions to launch an education campaign aimed at councils.
“We want to be sure low-cost contracts are the result of efficient business practices rather than underpayment of employee entitlements,” she said.
ASIAL chief executive Bryan de Caires said the security industry was competitive and the awareness campaign would benefit security service providers who were playing by the rules.
“We must ensure companies complying with workplace laws are not disadvantaged,” Mr de Caires said. For more details, visit www.fairwork.gov.au or call 13 13 94.
