Recruitment firms fined £39m for price-fixing
Wednesday 30 September 2009
Six recruitment firms who formed a cartel to fix prices and freeze out competition have been hit with fines totalling £39.3m by the Office of Fair Trading.
The companies blocked a new competitor from supplying labour to building firms and also set fee rates to charge certain builders, the OFT found.
They agreed to boycott a new company, Parc, which entered the market in 2003 as an "intermediary" supplying workers to construction firms from several recruitment firms.
This hit the recruiters' margins and they formed a cartel to tackle Parc - known as the Construction Recruitment Forum - which met five times between 2004 and 2006.
The firms punished were Hays Specialist Recruitment, A Warwick Associates, CDI AndersElite, Eden Brown, Fusion People and Henry Recruitment.
Hays suffered the biggest fine - £30.4m - but two whistleblowers who approached the watchdog, Hill McGlynn and Beresford Blake Thomas, were spared any penalty.
The OFT's action comes a week after it imposed fines totalling £129.5m on 103 construction firms for bid-rigging activities.
- 1 Al Pacino on suffering from depression: 'It can last and it's terrifying'
- 2 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 3 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 Mexican woman becomes world’s 'oldest person' at 127
Perez Hilton apologises for publishing Jennifer Lawrence naked photo leak
Jennifer Lawrence 'nude photo hacker' claims there are hundreds more celebrity images to come
Victoria Justice on naked photo leak: 'Let me nip this in the bud right now – pun intended'
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Ariana Grande nude photos leak: Pictures are completely fake, say singer's representatives
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£600 - £900 per day: Harrington Starr: Infrastructure Lead, (Trading infrastru...
£35000 - £38000 per annum + benefits: Ashdown Group: A highly successful, glob...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...
£40000 - £50000 per annum + benefits+bonus+package: Harrington Starr: SQL Impl...