G4S

For the plural of G4, see G4 (disambiguation).
G4S plc
Public limited company
Traded as LSE: GFS, Nasdaq Copenhagen: G4S
Industry Security
Founded 2004 (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.[4]

It is the world's largest security company measured by revenues and has operations in around 125 countries.[2][5] 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][6][7] 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

Origins

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).[8] In 2000, Group 4, a security firm formed in the 1960s, merged with Falck to form Group 4 Falck[8] and by 2000 the company was described as "the world's largest private security systems company".[9] In 2002 Group 4 Falck went on to buy The Wackenhut Corporation in the United States.[10]

2004 to 2010

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.[11] 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.[12][13] In the same year, Alf Duch-Pedersen succeeded Jorgen Philip-Sorensen to become the non-executive chairman of the business.[14]

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.[15] This group supported protests at Group 4 Securicor's annual general meeting in London in 2005.[16]

The 2006, US State Department Report on Human Rights in Indonesia, released in March 2006, featured the ongoing dispute in Jakarta with Group4/Securicor.[17] In July 2006, the Indonesian Securicor workers had a substantial win – but the campaigners continue to support other Group 4 Securicor workers.[18] The company disputed these claims and pointed to its strong relationships with unions around the world, including the GMB in Britain.[19]

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.[20] In April 2008, G4S acquired RONCO Consulting Corporation, one of the world's premier humanitarian and commercial mine action, ordnance disposal and security companies.[21]

In May 2008, G4S acquired ArmorGroup International.[22] GSL, a provider of outsourced justice services, was also acquired by G4S in May 2008.[23] Also, in the same month, G4S acquired Serbian company Progard Securitas.[24]

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.[25]

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.[26] 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.[27]

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,[28] 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.[8]

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.[29][30]

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.[31]

Since 2010

G4S acquired the South African security systems company Skycom in September 2010.[32] Then in April 2011, it bought the Cotswold Group, a surveillance and investigations company.[33]

Acquisitions of Guidance Monitoring and Chubb

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.[34] 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.[35]

Aborted acquisition of ISS

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.[36] Within two weeks, the deal was dropped due to lack of shareholder support.[37] 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".[38] 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.[39] Alf Duch-Pedersen resigned as G4S chairman after the failure of this acquisition and was replaced by John Connolly.[40]

Management and other changes

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.[41] In May 2013, Buckles resigned as chief executive of G4S with £1.2 million payoff and was replaced by Ashley Almanza.[42]

Failure to meet London 2012 Security Contract

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".[43] 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.[44] 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.[45] Pressed by Labour MP David Winnick, he was forced to admit that organisational situation had become a "humiliating shambles".[46]

In Newcastle, G4S were replaced by 500 staff from local security firms for Olympic events.[47] In Scotland, G4S were stripped of the security role with it passing to Strathclyde Police.[48] 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".[49]

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.[50]

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.[51]

Subsequent to 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]

Following the Olympics games, G4S provided a donation of £2.5 million to military charities as a goodwill gesture.[53]

Sale of Wackenhut Pakistan

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.[54] Sehgal disputed this figure, calling it "speculative" in a statement to the Express Tribune.[54]

Public Eye Award

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.[55]

Employee Omar Mateen

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,[56] who was employed as a security guard by the company.[57]

Operations

Activities

The former G4S offices in Västberga, Stockholm

G4S's core services include 'manned security services' – where it provides trained and screened security officers.[58] The company also provides 'security systems' such as access control, CCTV, intruder alarms, fire detection, video analytics and security and building systems integration technology.[59] '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.[60] G4S also provides 'secure facilities services' which includes integrated facilities services for entire sites or estates for commercial customers and governments.[61] The business provides 'risk management and consultancy services' which also includes mine detection and clearance services.[62] G4S also provides electronic tagging and monitoring of offenders at home or in the community.[63] 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.[64] 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.[65]

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.[66][67]

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.[68] 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).[69]

Operating structure

G4S segments its business into two areas:[65]

Corporate social responsibility

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.[70] 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.[71][72]

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.[73]

Sponsorships

In 2007, G4S began the G4S 4teen, an award-winning[74] program to support 14 young athletes around the world.[75] 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.[76][77][78][79]

Controversies

Recent controversies involving the company have included allegations of use of immigrant-detainee labour in prisons,[80] allegations of misconduct in child custodial institutions,[81][82] allegations of police telephone data manipulation,[83] and its troubled nine-year employment of terrorist Omar Mateen.[84][85]

See also

References

  1. 1 2 3 "Preliminary Results 2015" (PDF). G4S plc. Retrieved 8 April 2016.
  2. 1 2 3 "Key facts and figures". G4S plc. Retrieved 15 March 2015.
  3. ↑ "GFS.L Profile – G4S Stock – Yahoo! UK & Ireland Finance". Yahoo! Finance. Retrieved 15 March 2015.
  4. 1 2 "30 Most Powerful Private Security Companies in the World". 2014-12-30. Retrieved 2016-09-23.
  5. ↑ "G4S buys into Brazil security market". Financial Times. 8 June 2010. Retrieved 25 August 2010.
  6. ↑ "The Largest Company You've Never Heard Of: G4S and the London Olympics". International Business Times. 8 June 2012. Retrieved 14 June 2016.
  7. ↑ "The world's 10 Largest Employers". Fortune. 12 November 2014. Retrieved 14 June 2016.
  8. 1 2 3 "G4S History". G4S. Retrieved 18 April 2011.
  9. ↑ Dancel, Raul C. (28 April 2000). "Group 4 Buys Local Security Firm". Philippine Daily Inquirer. p. B2. Retrieved 30 May 2016.
  10. ↑ "Falck Buys Wackenhut Security". The New York Times. 9 March 2002. Retrieved 18 April 2011.
  11. ↑ "G4S Share Price". digitallook.com. Retrieved 15 March 2015.
  12. ↑ "Lars Nørby Johansen". Bloomberg.
  13. ↑ "Group 4 Securicor gets snappy with new 'G4S' logo". B2B Marketing.
  14. ↑ "Group4 Securicor PLC: Board Changes". FE Investegate.
  15. ↑ "Focus on G4S". Focusongroup4securicor.org. Retrieved 18 April 2011.
  16. ↑ Inman, Phillip; Gow, David (30 June 2005). "Unions Say Group 4 Is Unfair to Workers". The Guardian. UK.
  17. ↑ "Indonesia: Country Reports on Human Rights Practices – 2005". United States Bureau of Democracy, Human Rights, and Labor. 8 March 2006.
  18. ↑ "Violating Workers' Rights: G4S in Indonesia". Focus on G4S. Retrieved 18 April 2011.
  19. ↑ "G4S Praised by Prime Minister for Union Recognition Agreement with GMB". G4S. 22 June 2006.
  20. ↑ Chiesa, Alison (5 March 2008). "Scots Founder Sells Off Pop Concert Security Firm Rock Steady". Theherald.co.uk. Retrieved 18 April 2011.
  21. ↑ "G4S plc Acquisition of RONCO Consulting Corporation". G4s.com. 4 April 2008. Retrieved 18 April 2011.
  22. ↑ Power, Helen (21 March 2008). "Troubled ArmorGroup secures sale to G4S". Telegraph.co.uk. Retrieved 15 March 2015.
  23. ↑ "G4S Acquires Prison Firm". IFSEC Global. 18 December 2007.
  24. ↑ "G4S kupio 85 odsto akcija Progarda". b92.net (in Serbian). Retrieved 19 October 2013.
  25. ↑ "G4S Buys U.S.'s Touchcom for $23 Million". Reuters. Retrieved 15 March 2015.
  26. ↑ "G4S & UNI Sign Global Agreement". UNI. 16 December 2008.
  27. ↑ "SEIU Reaches Agreement with Wackenhut: Agreement Paves Way for Partnership on Mutual Goals". SEIU. 16 December 2008.
  28. ↑ "G4S Acquires Facilities Management Company All Star International for $60 Million – Proactiveinvestors (UK)". Proactiveinvestors. 23 November 2009. Retrieved 21 August 2013.
  29. ↑ Tweet Carina Stensson 08-13 59 23 carina.stensson@svd.se (23 September 2009). "Helikopterrånet – detta har hänt | SvD" (in Swedish). Svd.se. Retrieved 8 August 2012.
  30. ↑ "Helicopter Used in Sweden Robbery". BBC News. 23 September 2009. Retrieved 27 May 2010.
  31. ↑ "G4S Security Strike Could Shut Down Court System". United Voices. 9 September 2009.
  32. ↑ "G4S Buys South African Security Systems Company Skycom". Fox News. September 2010.
  33. ↑ "G4S Acquires Surveillance and Investigations Company The Cotswold Group". IFSEC. 8 April 2011.
  34. ↑ "Guidance Monitoring Operation Bought by G4S". Info4 Security. 27 April 2011.
  35. ↑ "G4S Locks Down £17m Chubb Deal. Insider Media. 24 February 2012.
  36. ↑ "G4S Shares Tumble on £5.2bn ISS Takeover Deal". BBC News.
  37. ↑ "G4S's Deal for ISS Buckled Under the Weight of Shareholder Anger". The Telegraph. 1 November 2011.
  38. ↑ "G4S Chief Nick Buckles: 'The ISS deal failure has been one of the most bruising experiences of my life'". The Telegraph. 5 November 2011.
  39. ↑ "Has G4S Security Lost the Plot?". The Telegraph. October 2011.
  40. ↑ Reece, Damian (28 September 2012). "The Women Who Should Be on the Bank of England's List to Be the Next Governor". The Telegraph. London. Retrieved 8 August 2013.
  41. ↑ Maidment, Neil (5 March 2013). "Security Firm G4S to Sell Struggling U.S. Government Arm". Reuters. Retrieved 21 August 2013.
  42. ↑ "Nick Buckles Quits as Chief Executive of G4S with £1.2m Payoff". The Guardian. 21 May 2013. Retrieved 8 May 2013.
  43. ↑ "Olympics Security Not Compromised, Theresa May Says". BBC News. 12 July 2012. Retrieved 12 July 2012.
  44. ↑ "G4S Olympics Staff 'Failed to Arrive' for Security Work". BBC News. 16 July 2012. Retrieved 16 July 2012.
  45. ↑ "London 2012: G4S's Nick Buckles Regrets Taking Contract". BBC News. 17 July 2012. Retrieved 17 July 2012.
  46. ↑ "G4S Boss Admits to 'Humiliating Shambles' over Olympic Security". The Guardian. London. 17 July 2012.
  47. ↑ "London 2012: Queen Hails Olympic 'Dedication'". BBC News. 24 July 2012.
  48. ↑ "BBC News – Strathclyde Police to Control Scots Olympic security". BBC News. 20 July 2012.
  49. ↑ "London 2012: Dorney Lake Security 'a Shambles'". BBC News. 20 July 2012.
  50. ↑ Judd, Terri (23 July 2012). "G4S Shambles Revealed in Internal Report: One Operator Says He Was Sent Teenage Girls to Guard a Games Venue at Night". The Independent. London. Retrieved 23 July 2012.
  51. ↑ "G4S Fills Olympic Security Quota". ESPN. 8 August 2012.
  52. ↑ "Chief Constables Want to Abandon G4S Scheme". BBC News. 20 July 2012.
  53. ↑ "G4S Donate £2 Million". The Guardian.
  54. 1 2 Alam, Kazim (26 August 2012). "G4S Pakistan Buyout to Be Done in Two Weeks". The Express Tribune.
  55. ↑ "Public Eye".
  56. ↑ "Why the Orlando Shooting Was So Deadly". The New York Times. Retrieved 13 June 2016.
  57. ↑ "Orlando Shooter Omar Mateen Not First G4S Employee to Go on Deadly Rampage". Event Chronicle. Retrieved 13 June 2016.
  58. ↑ "People's Post".
  59. ↑ "G4S Plans to Target IT, Infrastructure and Hospitality Sectors". Livemint. Retrieved 15 March 2015.
  60. ↑ "ProSecurityZone: G4S Monitoring and Response Gains New MD (G4S Secure Solutions (UK and Ireland))". prosecurityzone.com. Retrieved 15 March 2015.
  61. ↑ "G4S Wins Major Ministry of Justice Integrated Facilities Services Contract". infologue.com. Retrieved 15 March 2015.
  62. ↑ E-Mine
  63. ↑ "Security Oracle".
  64. ↑ "G4S Claims Improved Lincolnshire 999 Call Answer Times". BBC News. Retrieved 15 March 2015.
  65. 1 2 "G4S Annual Report 2012". G4S.
  66. ↑ "SRA Calls Sudden Halt to Rail Bids". The Telegraph. 8 February 2001.
  67. ↑ "Connex Bids for Welsh Franchise". BBC News. 27 November 2000.
  68. ↑ "G4S contract to run sexual assault referral centres damned". The Guardian. 24 May 2013. Retrieved 9 September 2014.
  69. ↑ "What Is G4S Doing in England's NHS?". Open Democracy. 15 July 2013. Retrieved 9 September 2014.
  70. ↑ "G4S plc". unglobalcompact.org. Retrieved 15 March 2015.
  71. ↑ "ADS Advance – G4S Launches Landmark Human Rights Policy". adsadvance.co.uk. Retrieved 15 March 2015.
  72. ↑ "[PDF] Human Rights Policy". business-humanrights.org. Retrieved 15 March 2015.
  73. ↑ "G4S Signs Global Code of Conduct for Private Security Providers".
  74. ↑ "G4S Wins at the Corporate Engagement Awards 2012". Retrieved 24 October 2012.
  75. ↑ "G4S 4Teen". G4ssport.com. Retrieved 18 April 2011.
  76. ↑ "Born to Run Haile Gebrselassie Interview". The Telegraph.
  77. ↑ "London 2012 Olympics BMX World Champion Mariana Pajon Carries Colombian Hopes into 2012". The Telegraph.
  78. ↑ "Haile Gebrselassie G4S 4teen Runner Pauline Korikwiang on Trans World Sport Video". First Post.
  79. ↑ "NFL Events: Combine Player Profiles – Margus Hunt". nfl.com. Retrieved 15 March 2015.
  80. ↑ Rawlinson, Kevin (22 August 2014). "Private Firms 'Are Using Detained Immigrants as Cheap Labour'". The Guardian. Retrieved 22 August 2014.
  81. ↑ Managers at G4S-run Medway youth jail paid bonuses despite failings, The Guardian, Eric Allison & Simon Hattenstone, October 21, 2016. Retrieved 22 October 2016.
  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.
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