G4S

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For the plural of G4, see G4 (disambiguation).
G4S plc
Public limited company
Traded as LSEGFS, Nasdaq CopenhagenG4S
Industry Security
Founded 2004 (12 years ago) (2004)
Headquarters Crawley, England, UK
Area served
Worldwide
Key people
John Connolly (Chairman)
Ashley Almanza (CEO)
Services Manned security services, cash handling services, justice services and outsourced business processes related to security and safety risks
Revenue £6,863 million (2015)[1]
£183 million (2015)[1]
£26 million (2015)[1]
Number of employees
618,000 (2015)[2]
Subsidiaries G4S Secure Solutions
Website g4s.com

G4S plc (formerly Group 4 Securicor) is a British multinational security services company headquartered in Crawley, England.[3]

The company was set up in 2004 when London-based company Securicor amalgamated with Danish business Group 4 Falck.[4] The company offers a range of services, including the supply of security personnel, monitoring equipment, response units and secure prisoner transportation. G4S also works with governments overseas to deliver security.[5]

It is the world's largest security company measured by revenues and has operations in around 125 countries.[2][6] With 618,000 employees, it is world's third-largest private employer, the largest European and African private employer, and among the largest on the London Stock Exchange.[2][7][8] G4S was founded in 2004 by the merger of the UK-based Securicor plc with the Denmark-based Group 4 Falck.

G4S has a primary listing on the London Stock Exchange and is a constituent of the FTSE 250 Index, having been relegated from the FTSE 100 Index in December 2015.

History[edit]

Origins[edit]

G4S has its origins in a guarding business founded in Copenhagen in 1901 by Marius Hogrefe, originally known as København Frederiksberg Nattevagt (English: Copenhagen and Frederiksberg Night Watch) and subsequently renamed Falck (English: Falcon).[9] In 2000, Group 4, a security firm formed in the 1960s, merged with Falck to form Group 4 Falck[9] and by 2000 the company was described as "the world's largest private security systems company".[10] In 2002 Group 4 Falck went on to buy The Wackenhut Corporation in the United States.[11]

2004 to 2010[edit]

A G4S van in central London

G4S was formed in July 2004, when Group 4 Falck's security business merged with Securicor to create Group 4 Securicor and began trading on both the London and Copenhagen Stock Exchanges.[12] In 2005, Lars Nørby Johansen was succeeded as chief executive by Nick Buckles and, in 2006, the new G4S brand identity was rolled out across its business worldwide.[13][14] In the same year, Alf Duch-Pedersen succeeded Jorgen Philip-Sorensen to become the non-executive chairman of the business.[15]

In 2006, 2007 and 2008, G4S was the subject of a global campaign by union workers alleging that its subsidiaries undermine labour and human rights standards. Some of these groups were organised under the banner of the SEIU-funded Focus on Group 4 Securicor.[16] This group supported protests at Group 4 Securicor's annual general meeting in London in 2005.[17]

The 2006, US State Department Report on Human Rights in Indonesia, released in March 2006, featured the ongoing dispute in Jakarta with Group4/Securicor.[18] In July 2006, the Indonesian Securicor workers had a substantial win – but the campaigners continue to support other Group 4 Securicor workers.[19] The company disputed these claims and pointed to its strong relationships with unions around the world, including the GMB in Britain.[20]

In March 2008, it was announced that G4S were taking over Scottish Rock Steady Group – who steward at major sporting and music events mostly in the UK. Rock Steady events have included Live8 concerts in London, Scottish FA Cup Final & the Download Festival.[21] In April 2008, G4S acquired RONCO Consulting Corporation, one of the world's premier humanitarian and commercial mine action, ordnance disposal and security companies.[22]

In May 2008, G4S acquired ArmorGroup International.[23] GSL, a provider of outsourced justice services, was also acquired by G4S in May 2008.[24] Also, in the same month, G4S acquired Serbian company Progard Securitas.[25]

In 2008, G4S also acquired Touchcom, Inc. for US$23 million. Touchcom, Inc. is located in the Burlington/Bedford, Massachusetts, area. The rebranding of Touchcom, Inc. to G4S was completed by 1 January 2012.[26]

In December 2008, G4S and UNI Global Union, announced the launch of an Ethical Employment Partnership, which will drive improvements in standards across the global security industry.[27] Simultaneous to this, G4S and the SEIU reached an agreement to end their long dispute and establish a framework to work together in the interest of employees.[28]

In 2009, G4S continued to acquire companies: Secura Monde International Limited and Shiremoor International Engineering Limited, together, the UK's leading specialist banknote and high security technical and commercial advisory companies; All Star International for $60 million,[29] one of the premier facilities management and base operations support companies providing services to the US government; Adesta, US-based provider of integrated security systems and communication systems; and Hill & Associates Consultants Limited, Asia's leading provider of specialist risk-mitigation consulting services.[9]

The Västberga helicopter robbery occurred on 23 September 2009 at 05:15 CET when a G4S cash service depot was robbed in Västberga in southern Stockholm, Sweden.[30][31]

In the autumn of 2009, G4S personnel in Australia went on strike, arguing that the company had subjected them to low pay and poor working conditions. The strike imperiled the operations of the court system in the state of Victoria. The guards provided entry-point screening for weapons and bombs in both the County Court and Magistrates Court, as well as additional security in the court rooms themselves.[32]

Since 2010[edit]

G4S acquired the South African security systems company Skycom in September 2010.[33] Then in April 2011, it bought the Cotswold Group, a surveillance and investigations company.[34]

Acquisitions of Guidance Monitoring and Chubb[edit]

In April 2011, G4S acquired Guidance Monitoring, an international designer and manufacturer of electronic monitoring technologies, including hardware and software used for offender monitoring and tracking.[35] In December 2011, G4S acquired the assets of Chubb Emergency Response, a large key holding company in the UK. The deal was finalised on 17 December 2011. The business has now been integrated into their existing key holding and response service.[36]

Aborted acquisition of ISS[edit]

On 17 October 2011, G4S announced it would purchase the Denmark-based facilities management group ISS A/S for £5.2 billion. The acquisition would have created the world's largest facilities management company.[37] Within two weeks, the deal was dropped due to lack of shareholder support.[38] G4S's chief, Nick Buckles, recounted the events of the failed acquisition, which cost the company tens of millions of dollars, as "...one of the most bruising experiences of my life".[39] A combination of institutional investors who led the response and the minority shareholders who followed, objected to a variety of factors, not the least of which was the additional leverage and debt the deal would introduce to G4S's balance sheet. General consensus is that lack of planning for shareholder response on the G4S side doomed the deal. Furthermore, many investors and analysts questioned why the company would want to purchase a firm so far removed from its area of expertise.[40] Alf Duch-Pedersen resigned as G4S chairman after the failure of this acquisition and was replaced by John Connolly.[41]

Management and other changes[edit]

In March 2012, G4S announced that it would sell the "struggling" G4S Government Solutions business (the former Wackenhut (WSI) and All Star business) to exit the US government services.[42] In May 2013, Buckles resigned as chief executive of G4S with £1.2 million payoff and was replaced by Ashley Almanza.[43]

Failure to meet London 2012 Security Contract[edit]

On 12 July 2012, it was announced that 3,500 British troops would be deployed at the 2012 Summer Olympics due to a shortage of adequately trained G4S security staff, with Labour MP Keith Vaz claiming that, "G4S has let the country down and we have literally had to send in the troops".[44] Shares in G4S later dropped 9 percent after the firm claimed it faced a possible £50 million loss as a result of failing to provide sufficient trained staff for the 2012 Olympic Games.[45] On 17 July, the company's chief executive, Nick Buckles, appeared before the Home Affairs Select Committee, where he apologised for the organisational failings, expressed regret at having taken on the Olympic security contract, and agreed in principle to pay bonuses to soldiers drafted at the last moment as replacement security staff.[46] Pressed by Labour MP David Winnick, he was forced to admit that organisational situation had become a "humiliating shambles".[47]

In Newcastle, G4S were replaced by 500 staff from local security firms for Olympic events.[48] In Scotland, G4S were stripped of the security role with it passing to Strathclyde Police.[49] At Dorney Lake, the Olympic rowing and canoeing venue, a G4S manager reported G4S radios were not working so staff were relying on personal mobile phones to communicate; G4S confirmed the venue was being manned by military personnel after 66 percent of rostered G4S staff were failing to show. The venue manager reported parts of the CCTV system had already been replaced by Army patrols and a complete army takeover was "on the cards".[50]

On 22 July 2012, a contractor reported that a third of his expected staff had not turned up; instead he was sent a group of mainly female, teenage students with minimal training, whom he turned away as he did not feel comfortable leaving them for night duties.[51]

Following the Olympics contract failures, the chief constables of Bedfordshire, Cambridgeshire and Hertfordshire were to recommend abandoning outsourcing work to G4S. They were backed by Jim Paice, the agriculture minister and Conservative MP for South East Cambridgeshire.[52]

On 8 August 2012, G4S announced that it had finally contracted enough employees to fully fulfil its contract for the Olympic games. Although missing its initial target of 10,000, G4S announced the sending of 7,000 personnel each day to Olympic venues, in a way they felt would allow them to fully secure each venue.[53]

Following the Olympics games, G4S provided a donation of £2.5 million to military charities as a goodwill gesture.[54]

Sale of Wackenhut Pakistan[edit]

G4S announced in late August 2012 that it would be selling its Pakistan division, Wackenhut Pakistan Limited, to its chairman Ikram Sehgal for a figure of around $10 million, according to the Financial Times.[55] Sehgal disputed this figure, calling it "speculative" in a statement to the Express Tribune.[55]

Public Eye Award[edit]

G4S was one of the nominees for the 2013 Public Eye Award, a counter-event created by NGOs, which awards the worst company of the year.[56]

Employee Omar Mateen[edit]

G4S was in the news in June 2016 because of employee Omar Mateen, the gunman behind the worst mass-shooting incident in United States history,[57] who was employed as a security guard by the company.[58]

Operations[edit]

Activities[edit]

The former G4S offices in Västberga, Stockholm

G4S's core services include 'manned security services' – where it provides trained and screened security officers.[59] The company also provides 'security systems' such as access control, CCTV, intruder alarms, fire detection, video analytics and security and building systems integration technology.[60] 'Monitoring and response services' is another core service, where G4S provides key holding, mobile security patrol and response services and alarm receiving and monitoring facilities.[61] G4S also provides 'secure facilities services' which includes integrated facilities services for entire sites or estates for commercial customers and governments.[62] The business provides 'risk management and consultancy services' which also includes mine detection and clearance services.[63] G4S also provides electronic tagging and monitoring of offenders at home or in the community.[64] The company provides back-office support functions for police forces, support for front-line policing, including the provision of custody suite services and forensic medical services.[65] It also manages juvenile and adult custody centres. This includes the management of all aspects of a facility and those held within the facility – similar centres are also used for the detention of asylum applicants. Prisoner escorting is another core service. G4S transports prisoners and asylum applicants between courts, police stations and custody centres.[66]

In the early 2000s, the company (then still known as Group 4 Falck) bid unsuccessfully for the right to operate several railway franchises in the United Kingdom.[67][68]

In 2013, G4S Forensic and Medical Services were awarded a three-year contract to run services providing medical examinations and counselling for victims of rape and sexual assault in the West Midlands. It has been working in this area since 2005.[69] The firm provides patient transport services for NHS Trusts including Barking, Havering and Redbridge University Hospitals NHS Trust; Surrey and Sussex Healthcare NHS Trust; St George's Healthcare NHS Trust (£2.7 million a year), and Epsom and St Helier University Hospitals NHS Trust (£3.5 million a year).[70]

Operating structure[edit]

G4S segments its business into two areas:[66]

  • Secure Solutions which includes services for commercial and government organisations in areas such as risk consulting, manned security, and security systems.
  • Cash Solutions which is the outsourcing of cash cycle management for banks, financial institutions and retailers – making up 18 percent of G4S's turnover.

Corporate social responsibility[edit]

In 2011, G4S became a signatory to the UN Global Compact, the international standard to promote socially responsible business behaviour including human rights, labour, environment and anti-corruption.[71] In 2013, G4S launched a Human Rights Policy, co-authored by Dr Hugo Slim, an internationally recognised human rights expert, aiming to align the company's practices with 'UN Guiding Principles on Business and Human Rights' and to introduce additional global guidelines for areas not currently covered by existing standards.[72][73]

G4S is a founder signatory of the International Code of Conduct for Private Security Service Providers (ICoC), a multi-stakeholder initiative convened by the Swiss government.[74]

Sponsorships[edit]

In 2007, G4S began the G4S 4teen, an award-winning[75] program to support 14 young athletes around the world.[76] G4S provided financial, social and logistical support to a number of athletes taking part in London 2012, including Colombian cyclist and Olympic gold medallist Mariana Pajon, Kenyan long-distance runner Pauline Korikwiang, and Estonian discus thrower and shot-putter Margus Hunt.[77][78][79][80]

Controversies[edit]

Recent controversies involving the company have included allegations of use of immigrant-detainee labour in prisons,[81] allegations of misconduct in child custodial institutions,[82] allegations of police telephone data manipulation,[83] and its troubled nine-year employment of terrorist Omar Mateen.[84][85]

See also[edit]

References[edit]

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  82. ^ "G4S-Run Youth Jail Criticised over Degrading Treatment of Dainees". The Guardian. 20 May 2016. Retrieved 23 March 2016. 
  83. ^ Travis, Alan (23 May 2016). "G4S Police Control Room Staff Suspended over Claims of Bogus 999 Calls". The Guardian. Retrieved 28 May 2016. 
  84. ^ Stolberg, Sheryl Gay; Pérez-Peña, Richard (14 June 2016). "Orlando Shooting Survivors Cope with the Trauma of Good Fortune". The New York Times. Retrieved 21 June 2016. The slaughter early Sunday left 49 victims dead, in addition to the gunman, and 53 wounded ...More than 30 of the wounded remained in hospitals on Tuesday, including at least six who were in critical condition. 
  85. ^ "Orlando Shooting Victims Arrived by 'Truckloads,' Doctor Says". Chicago Tribune. 14 June 2016. Retrieved 21 June 2016. The slaughter early Sunday left 49 victims dead, in addition to the gunman, and 53 wounded ...More than 30 of the wounded remained in hospitals on Tuesday, including at least six who were in critical condition. 

External links[edit]