Psst... have you heard...
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Psst... have you heard...
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WBEngInAus,
2009-10-02 02:47:58
Hays and others face huge fines over UK market-rigging scandal
Hays and other UK recruitment companies have been fined nearly £40 million pounds after a long-running investigation by the British Office of Fair Trading into market-rigging in the construction recruitment sector.
Office of Fair Trading senior director Heather Clayton said between 2004 and 2006, Hays and seven other companies colluded to fix their prices to supply staff to a range of UK construction companies.
The recruitment companies also agreed not to enter into contracts with an intermediary supplier, Parc UK, which had entered the construction recruitment market in 2003, and was putting pressure on their margins, she said.
"Instead of competing with Parc - and each other - on price and quality, the parties to this case formed a cartel, referred to by them as the 'Construction Recruitment Forum', which met five times between 2004 and 2006.
"In this forum, they agreed to boycott Parc and also co-operated to fix the fee rates they would charge to intermediaries such as Parc and also certain construction companies."
Clayton said Hays was fined £30.3 million ($54.8M AUD), and CDI AndersElite (which also operates in Australia) was fined £7.6 million.
Lesser penalties were served on smaller agencies A Warwick Associates, Eden Brown, Fusion People and Henry Recruitment.
Total fines were reduced significantly for all cartel participants, she said, due to the clarity and extent of admissions made once the OFT uncovered the illegal activities.
She said two Randstad businesses Beresford Blake & Thomas and Hill McGlynn (then owned by Vedior), which were also part of the cartel, escaped penalties because they blew the whistle in return for immunity.
Randstad delighted with exemption
Randstad (which acquired Vedior and its Select brands last year) said Select Appointments had notified the OFT in November 2005 of the cartel activities.
"As a result of this approach and for their full co-operation with the OFT throughout the course of its investigation, Beresford Blake Thomas and Hill McGlynn have been awarded full immunity from any fine."
Hays and other UK recruitment companies have been fined nearly £40 million pounds after a long-running investigation by the British Office of Fair Trading into market-rigging in the construction recruitment sector.
Office of Fair Trading senior director Heather Clayton said between 2004 and 2006, Hays and seven other companies colluded to fix their prices to supply staff to a range of UK construction companies.
The recruitment companies also agreed not to enter into contracts with an intermediary supplier, Parc UK, which had entered the construction recruitment market in 2003, and was putting pressure on their margins, she said.
"Instead of competing with Parc - and each other - on price and quality, the parties to this case formed a cartel, referred to by them as the 'Construction Recruitment Forum', which met five times between 2004 and 2006.
"In this forum, they agreed to boycott Parc and also co-operated to fix the fee rates they would charge to intermediaries such as Parc and also certain construction companies."
Clayton said Hays was fined £30.3 million ($54.8M AUD), and CDI AndersElite (which also operates in Australia) was fined £7.6 million.
Lesser penalties were served on smaller agencies A Warwick Associates, Eden Brown, Fusion People and Henry Recruitment.
Total fines were reduced significantly for all cartel participants, she said, due to the clarity and extent of admissions made once the OFT uncovered the illegal activities.
She said two Randstad businesses Beresford Blake & Thomas and Hill McGlynn (then owned by Vedior), which were also part of the cartel, escaped penalties because they blew the whistle in return for immunity.
Randstad delighted with exemption
Randstad (which acquired Vedior and its Select brands last year) said Select Appointments had notified the OFT in November 2005 of the cartel activities.
"As a result of this approach and for their full co-operation with the OFT throughout the course of its investigation, Beresford Blake Thomas and Hill McGlynn have been awarded full immunity from any fine."
