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Archer Solutions - Sham Contracting (Read 44238 times)
Reply #36 - 05. May 2016 at 22:41

AnneR   Offline
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Archer are ceasing the current contractor model they are using and forcing contractors to sign under the EBA as Casual Employees earning $1697.00 after tax. Thats about $100.00 less the what SXP pay their full time staff. No night shift penalty. No weekend penalty. And no public holiday penalty.
 
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Reply #35 - 17. Sep 2015 at 16:20

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It's not surprising if you know the rates some of these companies charge their clients. You would think they would smarten up after the ACG incident but nothing has changed.

I stopped offering mobile patrols after 6 months since it's basically impossible to run while paying standard rates. I remember I got a call asking for a quote on a small site doing 2 patrols per night. Apparently they were getting charged at a rate of $2.5 per hit..How do people even survive on those rates? Baffles my mind every time.

It's even funnier when big companies like SIS charge 6$ per hit and even bigger "legit" companies only charging a few dollars more. A dog eat dog world.

I don't think any industry is as disgusting as the security one.
 
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Reply #34 - 07. Sep 2015 at 10:18

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When it comes to the Archer EBA, employing a person as a casual when they have reasonably predictable hours of work is illegal. A person who has  has reasonably predictable hours of work must be employed as a part time employee. Being employed as a part time employee under the Archer EBA means that you get pay and conditions which are comparable to the Security Services Industry Award 2010 whereas being employed as a casual under the EBA means that you are paid well below the Security Services Industry Award 2010.

This is the definition of a permanent part time employee and a casual under the SSIA:

Quote:
10.4 Part-time employees

(a) A part-time employee is an employee who is employed in a classification in Schedule C—Classifications and who:

(i) is engaged to work fewer than 38 ordinary hours per week or, where the employer operates a roster, an average of fewer than 38 hours per week over the roster cycle; and

(ii) has reasonably predictable hours of work; and

(iii) receives, on a pro rata basis, equivalent pay and conditions to those of full-time employees who do the same kind of work.

(b) At the time of engagement the employer and the part-time employee will agree in writing on a regular pattern of work either:

(i) specifying at least the hours worked each day, which days of the week the employee will work and the actual starting and finishing times each day; or

(ii) specifying the roster that the employee will work (including the actual starting and finishing times for each shift) together with days or parts of days on which the employee will not be rostered.

(c) Any agreed variation to the hours of work will be recorded in writing.

(d) All time worked in excess of the hours as agreed under clause 10.4(b) or varied under clause 10.4(c) will be overtime and paid for at the rates prescribed in clause 23—Overtime.

(e) An employee who does not meet the definition of a part-time employee and who is not a full-time employee will be employed as a casual employee.

(f) A part-time employee employed under the provisions of this clause must be paid for ordinary hours worked at the rate of 1/38th of the weekly rate prescribed for the class of work performed.

10.5 Casual employees

(a) A casual employee is an employee who is engaged and paid as such.

(b) Casual loading

In addition to the ordinary hourly rate and penalty rates payable for shift, weekend and public holiday work payable to full-time employees, casual employees will be paid a loading of 25% of the ordinary hourly rate for the classification in which they are employed.


So anyone employed as a casual under the Archer EBA according to the conditions in the advertisement should complain to the Fair Work Ombudsman: http://www.fairwork.gov.au/contact-us
 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
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Reply #33 - 04. Sep 2015 at 15:08

AnneR   Offline
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Maybe under the modern award, but there is no penalties, nothing for casual staff under Archers EBA.

So casuals who sign up under the Archer EBA will only be earning just under 26.00 an hour regardless of day or time.  The ads they have on Seek currently even state that the positions are casual.

It is very obvious to those that already involved with Southern Cross and Archer, that Archer lied to the Commission to get the EBA approved.  They never had any intention of employing fulltime or part time workers. They just made out that they would.
 
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Reply #32 - 04. Sep 2015 at 14:50

dreadman   Offline
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Which is normal if you work full time, but it is different if you work casual, betweem 6pm-6am, and weekends.
 

"The opposite for courage is not cowardice, it is conformity. Even a dead fish can go with the flow." - Jim Hightower
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Reply #31 - 03. Sep 2015 at 21:00

AnneR   Offline
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Under the EBA the base weekly pay for a level 2 patrol officer is 740.70. Absolutely crap
 
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Reply #30 - 03. Sep 2015 at 17:10

AnneR   Offline
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Yeah I realised what you would have been talking about.  Have spoken with FWO Infoline. ICs can be offered employment opportunities.  However, does not relinquish any wrong doing in the past.
 
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Reply #29 - 03. Sep 2015 at 16:22

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Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
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Reply #28 - 03. Sep 2015 at 15:34

AnneR   Offline
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What is the position you are talking about?
 
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Reply #27 - 03. Sep 2015 at 13:58

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Given that this is a casual position for mobile patrol security officers then the pay level is 2. The hourly rates for a casual on pay level 2 is:

6am-6pm Mon-Fri (Day):            24.97      
6pm-6am Mon-Fri (Night):      29.31            
Permanent Night Shift:            30.97
Midnight Fri-Midnight Sat:            34.96
Midnight Sat-Midnight Sun:      44.95      
Public Holidays:                         54.94

You would only have to be working 6am-6pm Mon-Fri to benefit from the hourly rate of $25. 58 per hour advertised.
 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
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Reply #26 - 02. Sep 2015 at 23:57

dreadman   Offline
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Award 2010, I cant even.

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Quote:
Here is your opportunity to join Archer Solutions, Australia's leading security industry labour hire company that provides mobile patrol security officers to leading security companies Australia wide.

We are currently seeking highly motivated and qualified mobile patrol security officers to provide  patrol duties on behalf of our client in Tullamarine / Clayton, VIC and surrounding suburbs.

This is casual employment role, with attractive rates of pay (including superannuation), excellent working conditions and ongoing support services.

Role Responsibilities:

The role of mobile patrol officer will include:

    General security patrol duties
    Alarm response services
    Property check services
    Report preparation
    Duties as directed

Prerequisites:

    A current and valid VIC security officer licence
    A current and valid VIC open drivers licence
    Australian citizenship or the right to work in Australia
    Demonstrated mobile patrol security licence
    Unrestricted availability for day, night and weekend work
    Passionate about protecting others and their assets.
    Proven customer service and written / verbal communication skills
    Ability to work independently and solve problems autonomously
    Strong attention to detail
    Reliable transport to your work location
    Physically fit to perform the role



To Apply:

    Genuine applications of interest that meet the above selection criteria can be summited by clicking the 'Apply' button within this webpage.
    All relevant licences and qualifications must be held prior to application, and proof of obtainment provided with your resume (attach a picture of security / drivers licence etc).
    Make mention of your availability and previous mobile patrol security experience.
    Submitting your resume through the online function is sufficient, you are NOT required to email it to our office.
    Ensure you meet the essential selection criteria, incomplete applications will not be considered.
    Please note only shortlisted candidates will be contacted.



Archer Solutions is an Equal Opportunity Employer.


Source:http://www.seek.com.au/job/29406693?pos=1&type=standout&engineConfig=control&tie...

It goes to show you, that if you do report dodgy operators that are blatantly engaging in sham contracting, they will change their tune pretty soon. The LRD does not look down kindly on those engaging in sham contracting. Looks like the FWC approved their collective agreement, since they are advertising only 25.00$ a hour, not "award wages."
 

"The opposite for courage is not cowardice, it is conformity. Even a dead fish can go with the flow." - Jim Hightower
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Reply #25 - 28. Aug 2015 at 12:18

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A further piece of information which explains the situation of personal services income: http://freelance.blockshome.com/assets/0ee9f2ac22e21b3e7984c5ebc5a68eb9401f05d7c...
 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
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Reply #24 - 27. Aug 2015 at 13:13

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From what I can ascertain, Archer Solutions supply Southern Cross Protection with independent contractors.

Southern Cross Protection is a nationwide security firm which is part owned by ISS which owns MSS. Its website claims that it conducts over 15,000 patrol visits every night, utilising 150 vehicles out of 32 localised branches Australia wide with over 6,000 customers. See: http://www.sxprotection.com.au/

I cannot detect if any Enterprise Agreement applies to this company, so presumably they work under the Security Services Industry Award 2010. I understand that they employ their own staff to work during the week but employ independent contractors to work the weekend shifts. For these independent contractors, they utilize Archer Solutions.

A person who replies to Archer Solutions advertisements, they are presented with a contract which has a fixed hourly rate. This rate at first glance may seem attractive except when the contractor realizes he/she does weekend shift work and other costs are deducted from their income. After comparing what is left in hand, to what they could have earned under the award, they realize that it is Southern Cross Protection and Archer Solutions who are benefiting from their labour.

Southern Cross Protection are prepared to pay Archer Solutions a relatively high hourly amount for contractors considering any other employment costs such as payroll tax, workers compensation and public liability insurance costs are not theirs to bear when they engage an independent contractor.

Archer Solutions on the other hand have to set up a scheme whereby those who they engage can qualify under Taxation Rules as independent contractors. Although the previous post on Freelance Global, Southern Cross Protection's previous contractor supplier, showed that their discretionary trust structure was illegal, I believe the Archer Solutions work on the same model.

The critical point when it comes to taxation laws is the definition of Personal Services Income (PSI). I have gone through the PSI rules on the ATO webpage and cannot see that a person who performs the duties of a security guard cannot be termed other than having Personal Services Income. Income is classified as PSI when more than 50% of the amount you received for a contract was for your labour, skills or expertise.

If the PSI rules apply to you, they affect how you report your PSI to the ATO and the deductions you can claim. If the PSI rules don't apply, your business is a personal services business (PSB). You can receive PSI regardless of your business structure. If you're producing PSI through a company, partnership or trust, the income may be treated as your individual income for tax purposes. See: https://www.ato.gov.au/Business/Personal-services-income/

So it is wise if you are on an similar independent contract it is wise to contact a financial adviser to see that how the trust operates is within ATO guidelines.

 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
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Reply #23 - 27. Aug 2015 at 12:11

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To understand the structure that Archer Solutions operates, requires some idea of Freelance Global's demise.

Essentially Freelance Global would engage the workers as beneficiaries of a trust and have them sign an agreement saying they weren't an employee, just a beneficiary. All monies that Freelance Global collected from their clients on behalf of their independent contractors was paid into this trust.

When it comes to commercial or employment law, regardless of the words written in a contract, the court  always looks at the parties, scenario, flow of money and implications of the structure as a whole to determine what is occurring and it will have an impact on how the court rules.

Using the trust structure, the beneficiaries were able to reconfigure their income as well as split their income between themselves and other family members therefore reducing the tax paid by bringing the income down to lower tax brackets. Freelance Global had a separate arm of the business which advised independent contractors on how to arrange their tax affairs for a fee.

Freelance Global claimed the beneficiaries were not employees and therefore were exempt and did not pay payroll tax and, presumably, not charge their clients for it. The court ruled the so called contractors were employees for tax purposes and the Australian Tax Office saw a ‘honeypot of tax dodgers’  and relished in the fines, and Pay as You Go Tax they could collect.

Freelance Global allowed people classified as earning Personal services income (PSI) into the trust structure and the ramifications were horrendous.  Personal services income is income produced mainly from your personal skills or efforts as an individual. You can receive PSI in almost any industry, trade or profession. PSI does not affect you if you're an employee receiving only salaries and wages. Income is classified as PSI when more than 50% of the amount you received for a contract was for your labour, skills or expertise. Read:https://www.ato.gov.au/Business/Personal-services-income/Working-out-if-the-PSI-...

The questionable practice and tax risks of engaging contractors via a trust structure has been known for at least 6 years before Freelance Global went into liquidation. The ATO had been investigating Freelance Global for a number of years and then took its case to court for the ruling.

So what the ATO ended up with, was the income and tax records of all the independent contractors. They prosecuted and recovered unpaid taxes and fined the independent contractors to the tune of thousands of dollars individually.

With the ATO receiving this ruling, the NSW Office of State Revenue took Freelance Global  to court for unpaid payroll tax which was basically the responsibility of Freelance Global to collect from their clients. This amounted to nearly 4 million dollars which basically sent the company bankrupt .
« Last Edit: 27. Aug 2015 at 12:15 by Administrator »  

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
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Reply #22 - 26. Aug 2015 at 14:54

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If you think that being an independent contractor is simple, read this from a Freelance Global client when things went pear shaped: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&ved=0CEkQFjAGahU...
 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
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