G4S plc (formerly Group 4 Securicor) (LSE: GFS, OMX: G4S) is a global security services company headquartered in Crawley, United Kingdom. It is the world's largest security company measured by revenues and has operations in more than 125 countries.^[2][3] With over 630,000 employees, it is the world's second-largest private sector employer (after Wal-Mart Stores).^[2][4]

G4S has a primary listing on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It has a secondary listing on the Copenhagen Stock Exchange.

History[link]

Origins[link]

G4S has its origins in a guarding business founded in Copenhagen in 1901 by Marius Hogrefe originally known as Kjøbenhavn Frederiksberg Nattevagt and subsequently renamed Falck.^[5]

In 2000 Group 4, a security firm formed in the 1960s in Belgium, merged with Falck to form Group 4 Falck.^[5] Following the decision by the British Government in 1993 to enter into a contract with Group 4 to provide security for prisons, the company was embarrassed after a series of security blunders, including escaped prisoners.^[6] In 2002 Group 4 Falck went on to buy Wackenhut.^[7] In 2003 Group 4 Falck signed a Detention Services Contract with the Department of Immigration and Multicultural and Indigenous Affairs (Australia).^[8] Under this contract Group 4 Falck took over direct control of Australia's refugee detention centres from Australasian Correctional Management, owned by its subsidiary Wackenhut, which had run them since 1998. In 2004 Group 4 Falck merged with Securicor, a security firm founded in 1935 in London, to form G4S.^[9]

2004 to 2010[link]

A G4S van in central London

In 2005 and 2006 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.^[10] This group supported protests at Group 4 Securicor's annual general meeting in London in 2005^[11] and again in 2006.

G4S subsidiary Wackenhut, in September of 2005, faced allegations of security lapses at seven military bases where it was contracted to provide services. The company claimed the accusations were false and promoted by a union seeking to enroll its employees.^[12]

In March of 2006, whistle-blowers employed at Wackenhut released information to the press revealing that the company cheated on an anti-terrorism drill at a US nuclear site. It also performed poorly on another drill at a separate location. The allegations claimed that Wackenhut systematically violated weapons inventory and handling policies and that managers showed new hires spots at the facilities where they could take naps and cut corners during patrols.^[13]

The 2006 US State Department Report on Human Rights in Indonesia released in March 2006 featured the on-going dispute in Jakarta with Group4/Securicor.^[14] In July 2006 the Indonesian Securicor workers had a substantial win – but the campaigners continue to support other Group 4 Securicor workers.^[15] The company disputed these claims and pointed to its strong relationships with unions around the world, including the GMB in Britain.^[16]

In 2007, G4S announced a sporting initiative that supports 14 aspiring young athletes from developing countries. Called the 'G4S 4teen', the program has the support of running legend Haile Gebrselassie.^[17] 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.^[18] In April 2008, G4S acquired RONCO Consulting Corporation, one of the world’s premier humanitarian and commercial mine action, ordnance disposal and security companies.^[19]

In July of 2007, US Senator Bob Casey urged Interior Secretary Dirk Kempthorne to re-examine federal plans involving Wackenhut and its operations at US nuclear facilities, public transit systems and the Liberty Bell in Philadelphia. The Senator said the company was responsible for short-changing its employees.^[20]

The following winter, the New York Times reported that the Exelon Corporation would replace Wackenhut as an in-house security provider at ten US nuclear power plants. This followed the discovery of guards sleeping while on the clock.^[21]

In May 2008, the Company acquired ArmorGroup International.^[22] Also in May 2008 G4S plc completed its £355 million acquisition of Global Solutions Limited.^[23] In December 2008 G4S and UNI, the global union, announced the launch of an Ethical Employment Partnership, which will drive improvements in standards across the global security industry.^[24] Also in December 2008, G4S and the SEIU reached an agreement to end their long dispute and establish a framework to work together in the interest of employees.^[25] 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, 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.^[5]

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

In 2009, an Aboriginal man from Western Australia died of heat stroke after being transported in a G4S (then GSL) van without air conditioning or water.^[26] Criminal charges were never laid despite a GSL company spokesperson admitting there were "grounds for concern". This came after GSL had already been criticised in 2005 for their handling of Australia's detained immigrants in a report undertaken by former Head of Queensland's Corrective Services Keith Hamburger.^[27] The Västberga helicopter robbery occurred on 23 September 2009 in Sweden. Both G4S' own security and the police work were criticised.^[28]

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.^[29]

2010 to present[link]

Wackenhut Security Officer. Wackenhut is US filial of G4S.

On June 13, 2010, a video posted on YouTube by documentary filmmaker James Fox showed Wackenhut guards preventing reporters from covering the BP oil spill.^[30]

In October 2010, three G4S-guards heavily restrained and held down 46-year old Angolan deportee Jimmy Mubenga on departing British Airways flight 77, at Heathrow Airport. Security guards kept him restrained in his seat as he began shouting and seeking to resist his deportation. Police and paramedics were called when Mubenga lost consciousness. The aircraft, which had been due to lift off, then returned to the terminal.^[31] Mubenga was pronounced dead later that evening at Hillingdon hospital.^[32] Passengers reported hearing cries of "don't do this" and "they are trying to kill me." Scotland Yard's homicide unit began an investigation after the death became categorized as "unexplained". Three private security guards, contracted to escort deportees for the Home Office, were released on bail, after having been interviewed about the incident.^[31]

In February of 2011, The Guardian reported that G4S guards in the United Kingdom had been repeatedly warned about the use of potentially lethal force on detainees and asylum seekers. Confidential informants and several employees released the information to reporters after G4S' practices allegedly led to the death of Jimmy Mubenga. An internal document urged management to "meet this problem head on before the worst happens" and that G4S was "playing Russian roulette with detainees' lives."^[33] The following autumn, the company once again faced allegations of abuse. G4S guards were accused of verbally harassing and intimidating detainees with offensive and racist language.^[34]

Twenty-four workers were beaten and jailed by authorities for protesting working conditions and pay disputes at one of G4S' offices in Mozambique in April of 2011. Riot police allegedly used excessive force to disperse the crowd, which had been demonstrating outside the company's Maputo branch.^[35]

On 17 October 2011, G4S announced it would purchase Danish facilities management group, ISS A/S in a deal worth £5.2 billion. The merger would have created the world's largest security, facilities management company.^[36] Within two weeks, the deal was killed due to lack of shareholder support. ^[37] G4S' chief, Nick Buckles recounted the events of the failed acquisition, which cost the company 10s 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' 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]

In December 2011 G4S acquired the assets of Chubb Emergency Response, a large key holding company in the UK. The deal was finalised on 17th December 2011. G4S are now integrating the Chubb business into their existing key holding and response service.^[40]

A month later in January of 2012, Stars and Stripes reported that US soldiers were being required to guard a number of military installation gates in South Korea. G4S, which was scheduled to take over operations six weeks prior on December 1st, 2011, had failed to hire enough staff to do the job effectively. The company also faced local backlash for expecting its newly hired employees to work longer hours for lower wages than other military contractors in the area. ^[41]

On Jan. 24, 2012, the Knoxville News Sentinel reported that a Wackenhut security guard slept while on the job at the Oak Ridge Nuclear Laboratory and had also used an unauthorized cellphone while inside the high-security facility. Photographs of the incidents were distributed to the publication, as well as the lab, Wackenhut and the US Department of Energy, which oversees the plant's operations. The facility houses approximately half a ton of Uranium 223, enough for nearly 250 improvised nuclear detonations.^[42]

Operations[link]

G4S provides guarding services at various airports including Heathrow Airport,Gatwick Airport, Oslo Airport, Brussels Airport, Schiphol Airport and OR Tambo Airport as well as at various facilities belonging to the US, UK, Canada and European Governments. It also operates custody facilities (including prisons) and electronic security systems. In addition, it provides cash management and logistics services for the main British and European Banks.^[43] G4S owns the Wackenhut Corporation, a leading provider of security services in North America. They are also involved in risk management activities, consultancy and support in areas where infrastructure is limited, including services for governments, international peace and security agencies and multi-national corporations. Services also include land-mine clearance, ordnance management and training services. G4S also provides revenue protection services for railway companies across the UK. The company is a contractor in the UK Government's 'Welfare to Work' scheme.^[44]

References[link]

External links[link]

• Official website
• Company Profile on Yahoo Finance

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