Thursday, 26 February 2009, 11:24:46
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28/10/2009

Recruitment Agencies suffer a £40m price-fixing fine

The Office of Fair Trading has issued a fine to Construction Recruitment Agencies Hays, CDI AndersElite, Eden Brown, Fusion People, Henry Recruitment and A Warwick Associates. The total amount of the fine was £40m with Hays receiving the brunt of this fine with £30.36m.

In 2004 these agencies and BBT and Hill McGlynn “the whistle-blowers”, formed a cartel. They agreed to boycott Parc UK, a company which aimed to act as an intermediary between construction companies and recruitment agencies. Not only did they break the Competition Act 1998 by doing this but they then agreed to price fixing, something the OFT seriously frowns upon.

Senior Director of the OFT, Ms Clayton, would not breakdown the exact way the figures for the fines were decided but did mention that they were generally in proportion to the size of the company.

Chief Executive of Hays, Alistair Cox, said that the fine was disproportionate to the activities it relates to and to the way OFT has dealt with similar circumstances in the past. Other agencies such as Eden Brown, which is now owned by James Caan from Dragons Den, spoke to construction news and said he believed the fines were unfair and they may appeal the decision.

The OFT have made no apology for the level of their fines being issued and discounted the argument of their being a recession as a reason to be more lenient. Ms Clayton in fact went on to say that in these times it is more appropriate to enforce and uphold fair competition practices.

20/10/2009

Recruitment Agencies have been warned about supplying the Royal Mail

Recruitment Agencies have been put into an awkward position in relation to supplying the Royal Mail, as the leader of the Communication Workers Union (CWE), Billy Hayes, stressed that hiring extra staff to replace existing staff that are on strike had been outlawed.

The CWE is outraged that the Royal Mail have hired 30,000 temporary workers, although Royal Mail have claimed that the hiring of temps is not to replace any person that is on strike but to handle the backlog of undelivered post from this week’s nationwide strike.

Recruitment Agencies are concerned as they have been told by the CWE to be aware of the law, which forbids any employer or employment agencies to use staff to break a lawful dispute. This could lead to public sector recruitment agencies that are supply staff to suffer fines of up to £5,000 per worker for every day they are supplied.

Royal Mail have informed Lord Mandelson, the business secretary, that has to enforce these laws, that the extra staff is for clearing old post and not for replacing any worker. Royal Mail also explained that around Christmas time they usually hire an additional 15,000 temporary staff to handle the extra work load.

Lord Mandelson could not hide his anger with the CWU and believes’ they are obstructing the Royal Mail from a much needed modernisation, even going as far as to say this matter is `life or death` for the postal service. Mr Hayes on the other hand has said he understands there could be job loses in the industry but wants there to be a compromise.

Is there a solution? At the moment it is difficult to see where it will come from. The biggest problem may be if these strikes continue, the Royal Mail may not be able to survive and if this is the case then you could see the Royal Mail being sold to foreign investors.

06/10/2009

The Recruitment Business Awards

Filed under: recruitment agencies — admin @ 10:49

The Recruitment Business Awards were held on the 1st October at the Midland in Manchester. The Award ceremony was in association with The Daily Telegraph and sponsored by My Job Group and Northern Design Collective.

Recruitment agencies and related businesses were present to see if they had done enough to win one of the coveted awards. With TMP being crowned Recruitment Advertising Agency of the year. The other big winner of the night was Enigma People Solutions, which won Recruitment Company of the Year.

You can see all the winners of this ceremony on the link below

Recruitment Business Awards winners 2009

The 6 judges was chaired by Alan Kelly who has 25 years recruitment advertising industry experience, other judges included Alan Black (Managing director at Blackad) and Pascal Holt from Brand Savvy.

The RBA has already asked for people to start thinking about who they will nominate for 2010, entries for this will open in April.

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