News

Prosegur, one of the world´s leading companies in the private security sector has acquired Chubb Security Services in Australia, a company specializing in the cash logistics and ATMs’ operation and servicing sector. The total value of this investment, which will allow Prosegur to strengthen its presence in the Asian-Pacific region, is approximately 95 million euros, including the debt of the acquired company.

The company however is under international pressure following a complaint filed with the Spanish government in Madrid alleging a series of persistent violations of the OECD Guidelines for Multinationals in Latin America.

With 26 branches throughout Australia and a workforce close to 1,000 employees, it provides services mainly to the banking and distribution sectors and has achieved over the last twelve months, estimated sales of 88 million euros and has a fleet of over 4,700 armored vehicles.

This acquisition represents a further step in the internationalization strategy of the Company, committed to position itself in key markets such as Brazil, Germany, China, India and Singapore, which have focused its recent acquisitions. The complaints submitted regarding the OECD breaches however threatens its business. Allegations of denying workers rights centre around Peru, Colombia, Paraguay and crucially  in Brazil where it is bidding for contracts in the World Cup and the 2016 Olympics in Rio.

Specifically the complaint alleges that:

·      In Brazil, Prosegur harassed and fired union leaders, refused to comply with adverse employment decisions, violated strike laws regarding replacement workers and fired workers for exercising their legal right to strike.

·      In Colombia, Prosegur undermined collective bargaining by repeatedly violating collective agreement provisions, introduced illegal financial inducements and penalties to undermine the union. The company also violated freedom of association and collective bargaining rights, harassed and intimidated union leaders and repeatedly delayed and disregarded court rulings upholding workers’ rights.

·      In Peru, Prosegur signed a sham agreement to exclude the union and to undermine collective bargaining, repeatedly violated country laws by using temporary contracts as a tool to prevent union organising and industrial action. The company fired workers for exercising their legal right to form a union, discriminated against union members in awarding pay increases, violated strike laws regarding replacement workers and fired workers for exercising their legal right to strike.

·      In Paraguay, Prosegur signed a collective agreement with a sham union, fired union activists when the union was registered, undermined collective bargaining by refusing to bargain in good faith. The company violated strike laws regarding replacement workers, refused access to company premises by labour inspectors to investigate law violations and fired strikers and coerced resignations from hundreds of other strikers.