Tuesday, October 21, 2008

OFT issues Statement of Objections against eight recruitment agencies


121/08 21 October 2008

The OFT has today issued a Statement of Objections alleging that eight recruitment agencies have breached the Competition Act 1998.

The Statement of Objections sets out the OFT's proposed findings against;
A Warwick Associates, Beresford Blake Thomas, CDI AndersElite, Eden Brown, Fusion People, Hays Specialist Recruitment, Henry Recruitment and Hill McGlynn Associates.

The OFT alleges that these recruitment agencies engaged in the following conduct, in breach of the Chapter I prohibition of the Competition Act 1998 [see notes]:

* Collective boycott – an agreement to withdraw from and/or refrain from entering into contracts with a particular intermediary for the supply of candidates to construction companies in the UK, which had as its object the prevention, restriction or distortion of competition in the market for the supply, by recruitment agencies, of candidates with professional, managerial, trade and labour skills required by the construction industry in the UK.
* Price fixing - an agreement and/or concerted practice to fix target fee rates for the supply of candidates to intermediaries and certain construction companies in the UK, which had as its object the prevention, restriction or distortion of competition in the market for the supply, by recruitment agencies, of candidates with professional, managerial, trade and labour skills required by the construction industry in the UK.

The OFT alleges that this behaviour formed one single overall infringement, which took place from late 2004 to between the end of 2005 and early 2006 - the exact duration of a given recruitment agency's involvement in the alleged infringement varied.
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1 comment:

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