Business Issues at Elite Security

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Business Issues at Elite Security


Elite Security Services is a small security providing agency which functions  on getting tasks from bigger companies. Elite Security has good connections with big companies, who get major contract for providing security to various locations. The bigger companies, then, sub contracts the work to smaller companies like Elite to perform the actual task. It happens to be a win-win situation as the bigger company need not keep a big and bloated strength of employes and at the same time smaller agencies like Elite can render their services to the bigger companies thereby getting jobs. Thus, a symbiotic relation is formed which benefits both the parties but the unltimate performer gets the raw deal. The guards themselves do not know and at-times know of the illicit deal but are helpless at the hands of the Elite managers as their livelihood depends on the work provided by the agency. A kind of black employment regime is,therefore, thriving but neither the three arms of State nor does the law enforcers are doing anything about it as on paper everything is white and clean.



The issue or the bone of contention, as I term it, is the blatant violation of the wage rates. As a student visa holder, we are supposed to work only 20 hours a week. This limitation is very crucial for us getting exploited in every manner and the worst part is that we cannot complain also, for the fear of being terminated and even deported for violating the visa conditions. The State has a very well defined and clear rule of work and minimum wage. They even have commissions like Fair Work to look after the well being of the workers but what they lack is providing the immunity to the whistle blowers. This acts as a major decisive factor on cases of exploitation being reported. A worker, fully knowing that he/she is being exploited, keeps his/her mouth shut for the fear of its reaction. Business Issues at Elite Security

Having outlined the scenario, now the issue here is very simple. “A” gets contract from “B” to provide security and B pays 100$ per guard per hour to “A”. “A” then sub contracts the work to “C” at a rate of 70$ per guard per hour. “C” then employes a guard and pays him 15-17$ per hour. We do consider the running expenses of the companies but 100$ becoming 15-17$ is quite a down fall and is well below minimum wage. The fun part starts from here as the pay slip shows much much more than what he is actually paid. The pay slip shows 60$ per hour. Before you wreck your brain, let me substantiate my claims. A worker works for 80 hours a week(which is illegal as per visa condition) and he is paid 15$ per hour. He is then liable for 1200$ as a wage. The pay slip shows a very clear representation as 20 hours work with 60$ per hour. Now the employer gets more work by spending very less and the employes gets more hour and earns more.

The issue here is clear picture of exploitation  by an employer by not giving minimum wage entitled to the employee. The issue gets real murky, if during the time of performing the task,  the worker gets injured or hurt. This situation then calls for medical and other stakeholders being envolved whereby the worker is blamed solely for over working. Such situation thrives on two factors; one the need of work by the employees and two the upper hand of the employees in having the dictating terms up their sleeve.

Reasons for emergence

The issue pertaining to the above has crop up as a result of  loop hole on the part of the State viz; the Legislative, the Executive and the Judiciary. These three arms of the State have not functioned properly to plug the holes.

The Legislative have passed the necessary acts and laws which are….Show More Content….

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