Welcome, Guest. Please Login or Register
Australian Security Worker
 
  Return to Website Recent Posts HomeHelpSearchLoginRegisterBroadcast Message to Admin(s)  
 
 
Pages: 1 2 3 
Send Topic Print
Archer Solutions - Sham Contracting (Read 44235 times)
Reply #21 - 25. Aug 2015 at 11:57

Administrator   Offline
Administrator
Dob in a Dodgy Operator
Australia

Gender: male
Posts: 1003
*****
Alert Board Moderator about this Post! 
Yes Bluestone Global have gone turtle up also: http://www.asx.com.au/asxpdf/20140806/pdf/42r9ty7lv3yhg0.pdf

Losers: Shareholders, staff and contractors. Directors are off to scam some others
 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
IP Logged
 
Reply #20 - 25. Aug 2015 at 00:14

AnneR   Offline
Casual Contributor
Workers Unite

Posts: 14
**
Alert Board Moderator about this Post! 
Archer are registered for GST under the ABN they use for paying their ICs. ABN 91 866 322 083. It is registered to a trust.

I looked into what you were saying about Bluestone. Information I found suggests that Bluestone went into administration last year.
 
IP Logged
 
Reply #19 - 24. Aug 2015 at 13:09

Administrator   Offline
Administrator
Dob in a Dodgy Operator
Australia

Gender: male
Posts: 1003
*****
Alert Board Moderator about this Post! 
Archer Solutions Pty Ltd

ABN 31 163 872 204. Strange to find that Archer are not currently registered for GST after being registered up until 1 Jan 2014.

34/3 Box Road Taren Point NSW 2229

From the Enterprise Agreement: https://www.fwc.gov.au/documents/documents/agreements/fwa/AE414721.pdf

The four signatories to this agreement are two directors and two witnesses who appear to be business associates.

The first signatory Craig Tognolini. Linked In page: https://au.linkedin.com/in/craigtognolini

Just reading the Linked in summary of Craig's summary, should alert any security worker to stay away from any contract offered by Archer. I do not know if Archer knows the meaning of Sham Contracting. He is also a director of another company Easy Payroll Pty Ltd which sells payroll software and a director of a company called Trainer Connections which is a financial and administration system between horse owners and trainers. http://www.trainerconnections.com.au/

He part owns a number of racehorses.

The other director who signed the EBA is Brett Bedwell. His Linked In account is here: https://au.linkedin.com/in/brettbedwell

He is besides a director of Archer, an insurance agent and you can guess who takes a cut of all insurance premiums that independent contractors have to pay when being contracted to Archer.

The other associates are Daniel Isbester and Dwain Watkins. Dwain is a partner in the Easy Payroll https://au.linkedin.com/pub/dwain-watkins/25/479/b47. His father is a trainer with Trainer Connections.

Want to know what happens to directors of these Outsourcing Marketplace Operators that go broke. They get a job with another company in the same business. AnneR's husband lost a lot of superannuation because his previous contract principal Freelance Security a subsidiary of Freelance Global went into liquidation. Anthony Kelson the CEO of Freelance found a nice board position with Bluestone Global Ltd.

Read this and find out the potential of these Outsourcing Marketplace Operators to go broke: http://www.staffingindustry.com/row/Research-Publications/Daily-News/Australia-B...

This is the comment at the end of this article:
Quote:
Don't mind that Anthony Kelson was the director of Freelance Global that went bust due to his management and now the ATO are auditing 100+ independant contractors who used Freelance as tax advisors. The ATO audits will date back 5 years and be over 100k in fines\amendmends for effected contractors.
Despite this, Anthony Kelson sent Freelance into voluntary administration and now gets this board deal. Will he use this money to help the sucker contractors he advised and then jumped ship on? What a joke!
 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
IP Logged
 
Reply #18 - 23. Aug 2015 at 10:57

AnneR   Offline
Casual Contributor
Workers Unite

Posts: 14
**
Alert Board Moderator about this Post! 
The aim is to try and prove that he is an employee of Southern Cross Protection and take Archer out of the equation all together. There is no need for Archer to be involved at all other then for Southern Cross to not have the additional outlay of payroll tax etc etc. If you compare a full time employee of Southern Cross to the work that is done by the ICs under Archer then is absolutely no difference. Same uniform, same patrols, same rules. Everything, I mean everything is dictated by Southern Cross. Even when ICs get in trouble it is Southern Cross that deal with disciplinary action.
 
IP Logged
 
Reply #17 - 22. Aug 2015 at 23:28

dreadman   Offline
High Level Contributor
Security Service Industry
Award 2010, I cant even.

Posts: 420
****
Alert Board Moderator about this Post! 
That is really crap mate.

Archer is going to end up owing you guys lots of money, this company is really something else. Angry
« Last Edit: 22. Aug 2015 at 23:31 by dreadman »  

"The opposite for courage is not cowardice, it is conformity. Even a dead fish can go with the flow." - Jim Hightower
IP Logged
 
Reply #16 - 22. Aug 2015 at 18:29

AnneR   Offline
Casual Contributor
Workers Unite

Posts: 14
**
Alert Board Moderator about this Post! 
I don't know why he is paying GST to Archer. That is just the way it has been since he signed with them in March. That is also the way it was under Freelance prior to that. He gets paid a little over 2000 a fortnight and yes we put an amount away each month for tax. We got a letter from the ATO yesterday stating that they had determined that Freelance were his employer for the period that he lodged an unpaid super claim for. Freelance have gone into liquidation, so we cant recoup any money.  We are now going to be doing the same for the period of time since that has been under Archer.  He doesn't pay anything to Southern Cross. He fills in a time sheet that he sends through to the Branch Manager for Southern Cross every fortnight, they process his pay and pay Archer. Archer deduct their 5% plus gst and the fees for the car hire and insurance and pay him the rest. We have already been told by the FWO once before that we need to get a determination from the Federal Circuit court on whether or not he is an employee or contractor. I am just going to get him to email Archer and inform them that he will not be signing the statement till he gets advice from a lawyer. We did the same thing when they threatened not to pay him when he didn't sign up to Archer in the first place.
 
IP Logged
 
Reply #15 - 22. Aug 2015 at 12:16

Administrator   Offline
Administrator
Dob in a Dodgy Operator
Australia

Gender: male
Posts: 1003
*****
Alert Board Moderator about this Post! 
AnneR

Why is your husband paying GST to Archer? I would have thought that with Archer paying him, he would be responsible for paying GST to the ATO through his Australian Business Number. The way it works is that Archer pays him the amount and declares to the ATO that they have paid a person who is liable to pay GST citing his ABN number. On the other hand, what he pays Southern Cross Protection is GST assessable and SCP should be paying the GST on that which he pays to SCP. By true accounting, he should be declaring that he is paying SCP these fees as well as reporting their ABN.

It is really up to your husband whether he intends to fight Archer. If I believe some authority is investigating Archer for sham contracting and they are successful, then the contract he is working under becomes null and void whether he signs the statutory declaration or not.

However this authority needs all evidence that Archer knows it is breaking the law and asking the so called independent contractor to sign a statutory declaration is proof of that fact. If they believed their contracting methods were legal there would be no need for people to sign the stat dec.

He can stir the pot by reporting back to Archer that after consulting both the ATO and FWO websites, he believes that his status is employee rather than contractor and by signing the statutory declaration he will commit a crime.

I hope he has been paying income tax along with GST from what he has received from Archer. I would contact the ATO to confirm what he owes.

He needs to present the threat by Archer about non payment unless he signs the statutory declaration to the Fair Work Commission as soon as possible. I would also report it to the Fair Work Ombudsman contact Andrew Jones. This is intimidation in the workplace and is taken seriously by the FWC.

So now we know that from what Archer have been paying him and cost of business deductions such as he is paying SCP along with superannuation and public liability insurance and sickness and accident insurance, GST and income tax, what is left must be a meager amount.   Undecided
 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
IP Logged
 
Reply #14 - 21. Aug 2015 at 19:21

AnneR   Offline
Casual Contributor
Workers Unite

Posts: 14
**
Alert Board Moderator about this Post! 
So currently he pays 5% plus gst to Archer. On top of that he pays 30.00 a night for use of the Southern Cross Protection car and 8.00 to reduce the car insurance excess from 2500.00 to 500.00.  I believe in the 5% that includes accident cover and PLI.  On average he pays about 400.00 a fortnight in fees.
« Last Edit: 21. Aug 2015 at 19:22 by AnneR »  
IP Logged
 
Reply #13 - 21. Aug 2015 at 16:07

AnneR   Offline
Casual Contributor
Workers Unite

Posts: 14
**
Alert Board Moderator about this Post! 
When we started looking into all of this, I contacted Work Cover in Queensland to work out what the deal is with Workers cover insurance. The guy I spoke to took me through the Employee/Contractor tool on the ATO website and it came up saying he is an employee. I will be emailing the person you have spoken of with the matter number that I have previously be given with the new information.  I have also emailed it to a lawyer we are talking with at the moment.
 
IP Logged
 
Reply #12 - 21. Aug 2015 at 11:32

Administrator   Offline
Administrator
Dob in a Dodgy Operator
Australia

Gender: male
Posts: 1003
*****
Alert Board Moderator about this Post! 
AnneR

This situation looks to me like Archer are trying to get all people who they signed up under a sham contract to declare that they are truly believe that they are an independent contractor and have been paid correctly for work performed.

They are making the independent contractor declare that any taxes that are the responsibility of the contractor have been paid. This is an attempt to put the responsibility for tax payment on the contractor and make Archer not liable for any unpaid taxes.

Clause (c) ties the contractor to Archer for the various insurances that an independent contractor needs. As well as this it also shows the various licensing authorities that its contractors hold the various insurances. I take it that your husband makes a certain payment for insurance premiums or that amount is deducted from what Archer pays your husband. When doing your spreadsheet calculations, I would add this amount as this cost in an employment situation is covered by the employer not the employee.

This shows me that Archer are being investigated for sham contracting and are using this declaration to 'cover their arses' when the relevant authorities come investigating. It amounts to intimidation in the workplace. I would refer this to the Fair Work Commission as intimidation in the workplace falls under their jurisdiction.

Even if a person is deemed to be an independent contractor, the principal is required to pay superannuation into a super account nominated by the contractor. The principal cannot claim to have paid superannuation in the amount paid to the contractor. It has to be shown that individual payments were made by the principal into the contractors super account.

I take it that your husband has compared his working conditions to the FWO guide: http://www.fairwork.gov.au/about-us/policies-and-guides/fact-sheets/rights-and-o...

Does he believe that he is an independent contractor or an employee? If he believes he is an employee, then by signing this he is making a false declaration.

I know that you are discouraged by the FWO but I would compile all the information that you have and send an email to:Andrew Jones Assistant Director – Compliance Coordination Team Infoline, Dispute Resolution and Compliance Group Fair Work Ombudsman Andrew.Jones@fwo.gov.au. I reported Archer to him some time ago and I feel that the pressure put on Archer may be the result of my complaint.

I get discouraged by lack of reply from authorities but find action has been taken and the situation has improved.

The licensing of security companies varies from state to state. If Archer can prove it was the principal and contracted out its security work, then is some cases, it may not need a security firm's license. Email all the relevant licensing authorities and state Archer are under investigation for sham contracting and to investigate if they are complying with licensing conditions.


 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
IP Logged
 
Reply #11 - 20. Aug 2015 at 17:45

AnneR   Offline
Casual Contributor
Workers Unite

Posts: 14
**
Alert Board Moderator about this Post! 
This is the stat dec they are currently trying to get him to sign by 31st august or they may withhold payment until such a point as it is returned.

INDEPENDENT CONTRACTOR STATEMENT
I………………………………………………………………………………[insert name of independent contractor]
ABN………………………………………………………………………… [insert ABN] of
…………………………………………………………………………………[insert address of independent contractor]
has entered into an agreement with Archer Solutions Pty Ltd (ABN 91866322083) of 34/3 Box
Road Taren Point NSW 2229.
This Statement applies in respect of work performed in the previous 12 months (and/or since
commencement of the contract), in accordance with the contract between Archer Solutions and the
independent contractor signed at commencement.
I, …………………………………………………………………………. [insert name of independent contractor]
hereby declare:
(a) All remuneration (including payment or accrual of leave entitlements, superannuation
and any other employment entitlement or benefit) payable or owing to relevant
employees for work under the Contract, including the independent contractor has been
paid.
(b) All taxes required by law for payment of any work under the Contract as well as for
remuneration paid to relevant employees (if applicable), including the independent
contractor, has been paid.
(c) The Contractor wishes to continue to engage Archer Solutions as agent to obtain any
relevant public liability insurance and sickness/accident insurance for the Contractor in
respect of further services provided by the Contractor to Archer Solutions.
I also acknowledge that:
(a) I am engaged by Archer Solutions as an independent contractor to provide services under the
Contract.
(b) Both my relationship with Archer Solutions and the relationship between the Contractor and
Archer Solutions are that of an independent contractor and principal.
(c) I am not an employee, agent or partner of Archer Solutions. I am an independent contractor.
…………………………………………………………
Signature of Independent Contractor
…………………………………………………………
Print name of Independent Contractor
Date ………………………………………….………
 
IP Logged
 
Reply #10 - 20. Aug 2015 at 17:29

AnneR   Offline
Casual Contributor
Workers Unite

Posts: 14
**
Alert Board Moderator about this Post! 
I have contacted the ATO last year and lodged a complaint for unpaid superannuation. I spoke to them the other day and they have escalated it to a higher level to find out what is going on. Should get a response from them within 30 days.

I am happy to show anyone the contract who is interested in having a read of it. I have found a lawyer. Have emailed her the Archer contract and the one that Southern Cross offered immediately after Freelance went bust. Pretty much exactly the same word for word, with some obvious differences i.e. company name. She is going to look into it for us.

At this point in time, Im not going to worry with the FWO. Probably one of the most useless government agencies out there to deal with, well maybe after centrelink.

One thing I would like to know that I haven't yet found a definitive answer for.  Does it make any difference, even though Archer are now licenced, that they were hiring guards without a firm licence in Queensland? Also, if you like the details of their master licence in NSW, it is for between 4 and 14 workers. I would love to know how many ICs they have in NSW.

I have been keeping a spreadsheet on the computer of what my husband would have been paid if he was to be a casual employee, as that is what we were told by the FWO they would make any calculations on. Based on the overtime and public holidays he hasn't been paid penalties for, it is quite a lot of money. He has been with SXP for nearly 4 years.

 
IP Logged
 
Reply #9 - 19. Aug 2015 at 21:48

dreadman   Offline
High Level Contributor
Security Service Industry
Award 2010, I cant even.

Posts: 420
****
Alert Board Moderator about this Post! 
If it was an agreement that was approved by the Fairwork Commission, then no, you cannot do much about it. If it was an agreement that had no approval from the Fairwork commission, then the contract is invalid. As it states in the Fairwork Ombudsman site:

Quote:
MYTH 6: If an employee has a contract of employment, the National Employment Standards do not apply.
FACT: All employees are covered by the National Employment Standards, regardless of the terms stipulated in their employment contract.


If they did have an agreement in place it states:

Quote:
MYTH 10: Enterprise Agreements stop operating once they have passed their ‘nominal expiry date’.
FACT: Enterprise Agreements continue operating until they are either terminated by Fair Work Australia or replaced by a new Enterprise Agreement.


Source:http://www.fairwork.gov.au/about-us/news-and-media-releases/2012-media-releases/...
 

"The opposite for courage is not cowardice, it is conformity. Even a dead fish can go with the flow." - Jim Hightower
IP Logged
 
Reply #8 - 19. Aug 2015 at 14:07

Administrator   Offline
Administrator
Dob in a Dodgy Operator
Australia

Gender: male
Posts: 1003
*****
Alert Board Moderator about this Post! 
It appears that Archer Solutions have gone legit after advertising for staff under sham contracts. As AnneR states, they have obtained security licences and have just recently have had an Enterprise Bargaining Agreement approved: https://www.fwc.gov.au/documents/documents/agreements/fwa/AE414721.pdf

I looks as though my complaining to the FWO has had some results. Although the EBA has been approved, it falls short of making the employee better off than the award. It has been approved by the security guard's nemesis Commissioner Gregory on 10 Jul 15.

The payscale is below the current award payscale and I wonder if this has been adjusted. Working as a casual will mean that you will be duded when it comes to penalty rates for weekends. Otherwise the agreement is not as detrimental as others I have seen. It appears this agreement is a greenfields agreement because no worker has signed the agreement, only the two Directors. A greenfield agreement has to be negotiated between a union responsible for the employee classification and the company. This would probably make this agreement illegal.

AnneR wrote on 18. Aug 2015 at 17:15:
Have been trying to find a lawyer to help us out and so far cant find any that we can afford.

I really wish he hadn't signed the agreement. But what else could he do? It was our only source of income at the time


You may like to assess your husband's employment against the sham contracting page: http://www.ausecurityworker.com/sham_contracting.html

If it is deemed to be a sham contract then the contract is illegal. Contact the Fair Work Ombudsman to ascertain if it is a sham contract an if so the FWO will prosecute. http://www.fairwork.gov.au/about-us/policies-and-guides/fact-sheets/rights-and-o...

If the work contract is deemed not to be a sham contract then your husband has to fulfill the conditions of the contract or be sued by the company.

It may be worth your husband checking his salary against the payslip calculator to see how much he is out of pocket http://www.ausecurityworker.com/calculator.html

A company has to pay the contractor's superannuation. If this is not occurring contact the Australian Tax Office.
 

Ah! Working in Security where finding the real thief could be your employer. Now is the time to check your super account.
IP Logged
 
Reply #7 - 18. Aug 2015 at 17:15

AnneR   Offline
Casual Contributor
Workers Unite

Posts: 14
**
Alert Board Moderator about this Post! 
I lost the website and have only just found it again. Sorry about the delay in my reply.

Thanks for the info re the contact at the FWO. Will definitely try that out.  As for the firm licence, they now have one so according to the OFT its no longer an issue, go figure.  There master licence in NSW however only allows them to hire between 4 and 14 people. Would love to know how many they do actually have.  If its anything like Qld there are 14 contractors employed just within two branches of Southern Cross in SE Qld, so that's not even including the rest of the state.

I have contacted United Voice.  They have said there is nothing they can do because it is a pre-existing arrangement.

It is getting beyond ridiculous.  Southern Cross are now scrapping the current IC model and will be engaging persons under an EBA through Archer. However, this will not change anything for any current ICs.

Have been trying to find a lawyer to help us out and so far cant find any that we can afford.

I really wish he hadn't signed the agreement. But what else could he do? It was our only source of income at the time Sad.
 
IP Logged
 
Pages: 1 2 3 
Send Topic Print