Edgars Zalitis

In Latvia, there is rough perception about security services market, because security companies do not want to disclose the number of employees and social taxes paid for them, says Edgars Zālītis, chairman of the security solutions company AS G4S Latvia board.

We want to work openly, but none of the Latvian security companies has responded to our call, Zalitis indicates, adding that any industry offering a service where labour costs comprise the bulk of the expenses will face difficulties until the tax system is stabilized.

Zalitis explains that G4S Latvia employs nearly 1 500 workers and it is essential for the company, since G4S Latvia is a major employer on the Latvian market. Therefore, it is even more sharply affected by everything related to workforce – changes in legislation, taxes. In 2010, G4S holding group employer social contributions accounted for 1 819 461 lats and employee contributions – 707 746 lats.

Asked whether G4S Latvia has any plans on collaboration with industry associations to tackle the illegal employment issues in the security sector and adjust the market, Zalitis points out the company’s standpoint is very simple – G4S Latvia would like that each company’s number of employees and social tax paid were published.

It is a matter of principle. If it is possible to agree on this, then G4S Latvia is ready to offer its ideas and international experience to Latvian companies on any conditions. Unfortunately, we cannot agree on this issue, Zalitis says.

As one of solutions of how to deal with the illegal employment issue in security business, Zalitis mentions setting the minimum social tax rate for each employee at the extent of, for instance, 100 lats.

If the minimum tax is not paid, the company cannot operate and provide services. However, this requires changes in thinking, Zalitis asserts.

AS G4S Latvia is a security solutions company providing security services to over 13 000 physical and legal entities, including diverse sectors companies, as well as public sector clients, developing customized security solutions and ensuring technical and physical security, as well as montage and collection services.