OFT investigates employment agencies
EIGHT employment agencies supplying labour to the construction industry have been accused of price-fixing by the Office of Fair Trading.
The OFT alleged that the agencies, many with offices in the North, fixed the rates of the workers they supplied to construction sites.
It also claimed they entered into a collective boycott – agreed to withdraw from certain markets – to restrict or distort competition.
The companies implicated are: A Warwick Associates, Beresford Blake Thomas, CDI AndersElite, Eden Brown, Fusion People, Hays Specialist Recruitment, Henry Recruitment and Hill McGlynn Associates.
Fusion People and Hill McGlynn Associates have offices in Leeds. Hays Specialist Recruitment has offices across Yorkshire.
The OFT alleged that the agencies took part in these activities from 2004 to 2006, although the exact duration of each agency’s alleged involvement varied.
The OFT has made the claims in a statement of objections, which gives notice of a proposed infringement decision under the Competition Act 1998 to the parties involved.
In a statement the OFT’s chief executive John Fingleton said: “For a market to work well, companies should compete to supply services and set prices independently. If we find evidence of anti-competitive activity we will use the appropriate powers to punish the companies involved. If proven, the alleged practices in this case would amount to a serious breach of the law.
“At this stage it should not be assumed that the parties involved have broken the law. The OFT will decide if the law has been breached after it has reviewed any responses to the statement of objections.”
