The jobs of 20 Bermudian security guards at Bermuda Security Group’s cash-in-transit business unit are to be made redundant.

The mix of 12 full-time and eight part-time workers will lose their jobs at Shield Security Ltd on September 27.

The company will close and be replaced by a joint venture between BSG and Caribbean security powerhouse Guardsman.

Guardsman Bermuda Ltd will start up with 15 Bermudian staff comprising a mix of former and new employees, BSG said.

Three former Shield staff have been hired full-time by the joint venture. Of the 20 workers made redundant, eight applied for jobs with Guardsman Bermuda. The new company has been recruiting staff for several weeks, it said, adding that the forecast for operations projects that staff enrolment numbers will grow.

BSG said the joint venture will operate with an entirely new business model with a focus on cash-management services.

The transition was made necessary, BSG said, because the “evolution of the industry with advanced technologies, improved efficiencies and risk mitigation, has created a demand for a modernised approach”.

The company had to adapt to changes in the cash-in-transit business to remain viable, it said.

Herman Tucker, chairman of BSG, said: “We regret that this will result in the redundancy of staff at Shield Security Ltd. We have worked closely with the Bermuda Industrial Union and Ministry of Labour in meeting our obligations with the collective bargaining agreement and employment legislation.

“What’s more, we continue to work to secure alternative employment opportunities for those affected. We are proud of our role as a major local employer with approximately 350 employees across our group.”

He added: “We look forward to working with our new partner to deliver a state-of-the-art cash-management service.”

BSG said the process of determining how to transform the cash-in-transit business into a cash-management service business has taken several months.

During that time, the company recognised that in order to deliver the new services BSG would require an experienced partner with expertise, a proven track record, and history in the cash-management and logistics industry.

Guardsman, the Caribbean region’s largest private security enterprise with 13 companies and more than 8,000 employees, “checked all the boxes”, BSG said.