Opportunities in airport security

["Charles Jannuzi" <jannuzi@xxxxxxxxxxxxxxxxxxxxxxxxx>]

If you read this article, you can see why Wackenhut and others (like federal
spending parasite Carlyle Group which owns an array of companies selling
services to the federal government) will want to get into airport security
more deeply. Partial federalization takes the liability out of the
proposition for them while it adds what they are looking for most: money.

CEJ

http://www.sireview.com/articles/securityguard.html

Spotlight on Security

By the SI Review Editorial Staff

[ Razors, Not Guns | Security Flaws | A Booming Business | Other Benefits ]

The Sept. 11 tragedy not only opened America's eyes to the real threat of
terrorism on U.S. soil, it also focused a spotlight on a little-talked-about
slice of the staffing world: security services firms.

In the wake of the four fatal commercial jet hijackings, staffing firms
providing passenger screening security personnel suddenly found themselves
in the hot seat. The nation quickly learned that one of the firms
responsible for airport security that morning -- Argenbright Security
Inc. -- had a blemished history of hiring criminals and falsifying
background checks. Thanks to broader problems that have emerged in airport
security procedures, companies providing that service now are dealing with a
federal take-over of the system.

The attacks also have prompted some companies to reevaluate a range of
security policies. One result is a call for more employment background
checks. Another is a demand for more guards to stand watch over buildings.

Ironically, the bulk of America's beefed-up interest in security staffing
services may do very little to prevent the kind of terrorism seen on Sept.
11 -- which involved people who seem to have abided by the law for most of
their lives but were willing to kill themselves to hurt others.

The new and proposed heightened security measures are causing America's
impatient populace inconvenience and delays, especially in air travel, but
they may carry the benefit of peace of mind. "If they see uniformed security
officers in more places, I think that will get people into their normal
routines," says Patrick Cannan, director of corporate relations for security
and staffing services provider The Wackenhut Corp. "Companies are aware of
that." [Top]

RAZORS, NOT GUNS

The alleged suicide hijackers seem to have caused their carnage without
breaking any airport security rules. Their supposed weapons, razor blades
and box cutters, were not banned prior to Sept. 11. Even so, the tragedy led
to intense scrutiny of the firms staffing passenger screening checkpoints --
typically security staffing companies hired by airlines to handle the task.

Within days, stories circulated that Argenbright Security Inc., which had
provided passenger screening services for the hijacked flights from both
Newark and Washington Dulles airports, had a tarnished security record. Last
October, the company agreed to pay a $1.2 million fine for a series of
violations at the Philadelphia International Airport. In particular,
government investigators found that between 1995 and 1998 Argenbright had
hired dozens of criminals because it had not conducted background checks,
and then had falsely certified that the checks had been completed. According
to the government's sentencing memorandum, one of Argenbright's managers had
"encouraged and permitted test scores to be falsified and phony GEDs to be
created."

At the time of the Philadelphia wrong-doing, Argenbright was owned by
Argenbright Holdings Limited. It has since been acquired by Securicor, a
U.K.-based firm. Argenbright spokesperson Sara Jackson said the firm was
"shocked and saddened" by the events of Sept. 11 and had fired the managers
responsible for the security lapses that led to the fine. Parent company
Securicor also defended the firm: "We believe that this company's
aviation-related services have been and will continue to be carried out in
accordance with contractual procedures, backed up by sound risk management,"
the company said in a Sept. 26 statement. "Heightened airport security
requirements will provide Argenbright with numerous opportunities for
further service development." [Top]

SECURITY FLAWS

But the future of Argenbright and other private passenger-screening firms is
in doubt (see sidebar). Investigations into the state of airport security
have ripped the firms. Last year, for example, agents from the federal
General Accounting Office used fake law enforcement badges and credentials
to enter secure access at two airports. They also were issued tickets and
boarding passes and could have carried weapons or other dangerous items onto
the planes. In its report last June, the GAO noted that "U.S. screeners have
historically had difficulty in detecting dangerous items." The report cited
annual turnover rates above 100% for screening personnel, and attributed it
to pay rates at or close to the minimum wage.

The high turnover may be caused by many things, but a root cause may be the
stigma of the security profession itself. Security services firms haven't
enjoyed a very flattering reputation. "Rent-a-cop" is the pejorative often
given the men and women who watch over construction sites, keep order at
rock concerts or make you sign in to a building. The field is perceived as
welcoming people who aren't too bright and who may have been on the wrong
side of the law at some time -- an impression reinforced by Argenbright's
troubles in Philadelphia. "There's a misconception in the community that
security guards are untrained," says Harold Heatley, director of operations
for Excell Security Inc. "People look at them as a kind of menial laborer."

To promote the field's professionalism, Heatley's firm tackles both
symbolism and substance. Rather than labeling their employees at nightclubs
"bouncers," they call them "hosts." Excell Security's pay rates start at
minimum wage but run as high as $16 to $25 per hour -- which helps keep its
annual turnover at less than 50%. Excell's security personnel also must pass
a background check and a personality profile that looks, in part, for
hostile tendencies, and practice conflict resolution methods.

The Wackenhut Corp. sets the bar even higher for its top-of-the-line cadre
of security personnel. Those individuals have to have graduated from a
law-enforcement academy, served in an elite military unit or have a degree
in the criminal justice field. The standards enable those employees to say
"We're not rent-a-cops, we're custom protection officers from The Wackenhut
Corporation," Cannan says.

But at least in terms of airport security, private firms have a long way to
go, experts believe. In a report issued in September, the GAO repeated its
claim that some other countries handle airport security better. Screening
operations in Belgium, Canada, France, the Netherlands and the United
Kingdom have stricter qualifications and better training for screeners, as
well as higher pay and better benefits.

Oakland (CA) International Airport took that report to heart in early
November 2001. Its governing board voted to require airport screening firms
to pay at least $10 per hour with benefits, or $11.25 per hour without
benefits. Oakland's screeners had been averaging about $6 per hour. [Top]

A BOOMING BUSINESS

In the weeks following the terrorist attacks, security firms saw their
orders jump. Wackenhut, for example, found that its army of 30,000 employees
couldn't handle the demand, and it asked workers to take on 12-hour shifts
and overtime assignments. Many of the customers calling were businesses
wanting guards to protect their facilities or staff new metal detectors and
the like. "Even if they are employing high-tech equipment, it requires
uniformed officers to operate it and monitor it," Cannan points out.

On the other hand, the spike in demand wasn't enough to lure other staffing
firms into the field. Staffing giants Manpower and CDI both told SI Review
they have no plans to develop security personnel divisions.

Besides hiring additional security guards to keep intruders out, U.S.
companies also are stepping up the scrutiny of their internal staff. Toby
Malara, general counsel for the National Technical Services Association,
says member firms have been calling in for advice on the best practices in
background checking and how to do it legally. While six months ago IT
staffing firms might have done a simple criminal background check on their
new hires, now they want more comprehensive investigations, which could
include residency verification and three work references.

Malara says the extra care is becoming a necessity in a business world
that's ever more suspicious. "If you go to a potential client and say, 'We
screened all of our consultants through A, B, C and D on a state, federal
and county level,' that's probably reassuring to them." [Top]

OTHER BENEFITS

The country's new emphasis on security and background checks might yield
other rewards. Potential embezzlers might be rooted out, suggests Robert
Rubin, COO for MVM Inc., a security and staffing firm based in the
Washington D.C. area. And additional guards at building entrances might stop
a disgruntled employee from killing co-workers -- a nightmare scenario that
has played out several times in recent years.

Easing fears among an anxious public is another hard-to-measure but
potentially important result. But there are limits to increased security
measures alone, Rubin notes. America also must get at the roots of violence
if it is to be truly secure from foreign or domestic terrors. "We'd advocate
both," he says. "For example, teach the kids anger management classes so
they don't commit another Columbine." [Top]

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